Lilah Butler, Car Insurance Writer
@lilah_c
No, State Farm does not offer gap insurance. Instead of traditional gap insurance, State Farm has a Payoff Protector® benefit, which is similar to gap insurance and included with every vehicle financed by State Farm Bank or used as collateral on a State Farm loan.
How State Farm's Version of Gap Insurance Works
State Farm’s Payoff Protector benefit cancels the outstanding principal balance on a State Farm auto loan after the car is totaled or stolen and the primary insurance provider pays its share.
Once a customer’s collision or comprehensive insurance provider (it doesn’t have to be State Farm) or another driver’s liability insurance pays the settlement, Payoff Protector allows State Farm Bank to cancel the rest of the payment owed on the loan. The loan must be in good standing for the Payoff Protector benefit to apply.
State Farm Payoff Protector Eligibility
State Farm’s Payoff Protector benefit is available to customers with a loan contract from State Farm Bank. It has different rules and restrictions depending on where a customer lives. For more information about State Farm Bank’s Payoff Protector benefit, call the company directly at 866-207-9079.
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How To Know If You Have Gap Insurance
1. Check with your car insurance company.
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