No, Geico does not offer gap insurance, but you can find affordable gap policies from many other major insurance companies. Gap insurance is a specialty type of coverage that pays the difference between your car’s actual cash value and your loan or lease balance if the vehicle is stolen or totaled. You may be required to carry gap coverage if your vehicle is financed.
If you’re a current Geico customer and want to maintain your policy, you could purchase gap insurance from a dealership or a stand-alone company. However, dealership gap insurance is often the most expensive option, since it’s usually rolled into your loan and charged interest.
To find out whether you have gap insurance, check 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 to look for gap coverage in the list of coverages provided by both.
Geico is so cheap because it sells insurance directly to consumers and offers a lot of discounts. Direct-to-consumer insurance sales eliminate the cost of middlemen and allow Geico to have significantly fewer local offices and agents than companies like State Farm and Allstate. Having a smaller agent network lowers Geico's overhead costs so they can pass those savings on to consumers.
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...
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