Yes, Esurance offers gap insurance as an optional policy add-on, though it may not be available in every state. Esurance gap insurance pays the difference between a totaled car’s actual cash value and the policyholder’s loan or lease balance, with a limit of 25% of the vehicle’s value in some cases.
The cost of Esurance gap insurance depends on factors like your state and your vehicle’s worth. Regardless, purchasing gap insurance from an insurance company is usually a better investment than purchasing this coverage from a dealership, where the cost is often rolled into your loan and charged interest. Plus, you can cancel Esurance gap insurance once your car is worth more than your loan or lease balance.
For more information, check out WalletHub’s complete guide to gap insurance.
To find out if you have gap insurance, you should check both your existing car insurance policy and the terms of your loan or lease. Drivers can get gap insurance through their insurance company as an add-on or separately through their auto lender, so it’s important for drivers to check both places.… read full answer
How To Know If You Have Gap Insurance
1. Check with your car insurance company.
You can look through records such as your recent bills, or you can log in to your account on the company’s website. If this fails, you should call to ask about your coverage.
2. Check with your auto lender.
If you didn’t buy gap insurance from your normal insurance company, you could have purchased it from the dealership, bank, or credit union that supplied you with a loan or lease. It can be easy to overlook gap insurance from one of these sources since it’s sometimes included in your contract automatically.
3. Check your financial documents.
If you do not have gap insurance through your dealership, lender, or car insurance company, you probably are not covered. But as a last resort, you can look through your financial records – such as your online bills, credit card statements, and checkbook – to try to find some clues.
Gap insurance, which covers the difference between your loan balance and the car’s actual value, can come from a dealership, bank, credit union, or car insurance company. It’s unlikely that you bought a stand-alone gap insurance policy without realizing it, so your first step should be to check with the obvious candidates.
You can lower your Esurance car insurance costs by taking advantage of Esurance discounts, opting for a higher deductible, and reducing your coverage, among other things. Esurance considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.… read full answer
How to Lower the Cost of Car Insurance from Esurance
Use Esurance’s auto insurance discounts
Esurance offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount equal to 30% of their renters insurance premium if they purchase renters insurance in addition to their auto policy.
Raise your car insurance deductible
Opting for a higher deductible on any of your insurance policies from Esurance can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.
Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.
Improve your driving record
Practicing save driving habits and avoiding moving violations can help you qualify for lower Esurance insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. Esurance even offers a discount to drivers who take an approved defensive driving course.
Build and improve your credit
Because your credit history is correlated with your likelihood of filing an insurance claim, Esurance uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.
Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your Esurance premium.
Drive an insurance-friendly car
Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from Esurance to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.
Sign up for DriveSense
DriveSense, the Esurance telematics program rewards you for good driving with a discounted premium. Specifically, DriveSense tracks miles driven, speed, the time of day that you drive, and braking. By using DriveSense, drivers can save 5% initially on their rate.
Finally, if you’re still struggling to afford your Esurance policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.
Gap insurance takes 5-45 days to pay the policyholder after a claim is filed. For drivers to receive a gap insurance payout, the car first needs to be declared a total loss, and the insurance company needs to accept the claim.
State laws also dictate how long an insurance company has to pay for a claim. For example, insurers in Texas must pay within five days after accepting a claim. Some other states, like Massachusetts, do not have a specific limit, saying only that an insurer must pay within a “reasonable” amount of time.… read full answer
Factors That Affect How Long it Takes for Gap Insurance to Pay
Insurance companies will generally declare a car a total loss within 30 days of the initial claim being filed. However, more complicated situations take longer to settle, such as:
Accidents involving multiple drivers
Unclear fault determination
Once the car has been officially established as a total loss and the insurer agrees to pay for gap coverage, the company will begin to process the gap payment. Since gap insurance pays for the difference between a car’s actual cash value (ACV) and the balance on its loan or lease, gap insurance payments are usually sent straight to the lessor or lender.
How To Speed Up Gap Insurance Payout
To get the fastest possible gap insurance payout, be sure to check your policy details and follow any instructions from your insurance company. For example, some insurers require you to keep making payments to your lender or lessor while the claim is being investigated.
Also make sure to send the insurance company any necessary documents, like a copy of the police report, and promptly sign and return all paperwork. And if needed, check your state’s laws to see if there’s a specific window during which your gap insurer is required to pay.
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