Lilah Butler, Car Insurance Writer
@lilah_c
No, USAA 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 (ACV) 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.
USAA Car Replacement Assistance
Although USAA does not offer traditional gap insurance, it does have something similar, called car replacement assistance coverage. In states where this coverage is available, policyholders get 20% more than what their car is worth should it get totaled. That may or may not be enough to cover the full gap between your ACV and balance. This coverage is not available for cars that are leased or for non-owned vehicles on commercial auto policies.
If you’re a current USAA customer and want to maintain your policy, you could opt for car replacement assistance coverage from USAA or 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.
Popular Gap Insurance Providers
If you wantr more information, you can check out WalletHub’s complete guide to gap insurance.
People also ask
How do I know if I have gap insurance?
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.
How To Know If You Have Gap Insurance
1. Check with your car insurance company.
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read full answer by WalletHub, Financial CompanyWhy is USAA so cheap?
USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members. A minimum coverage policy from USAA costs an average of $67 per month, and USAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and annual mileage discount....
read full answer by McKayla Girardin, Car Insurance WriterHow long does it take for gap insurance to pay?
Gap insurance takes one to six weeks to pay the policyholder after a claim is filed. For drivers to receive a gap insurance payout, the car must be declared a total loss first, and the insurance company needs to accept the claim.
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....
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@waldellgraves: Thank you for your response. The USAA website mentions the availability of total loss protection, saying that it covers the difference between your outstanding auto loan debt and your insurance settlement. However, we contacted USAA customer service, and they said total loss protection is not being offered right now. We updated the answer accordingly.
This is a false statement. USAA does not provide GAP, Total Loss Protection, and any version of the two to auto loan consumers. Dr. G