Gap Auto Insurance Providers Buying Guide
Purchasing auto gap insurance is easy, but so is paying too much. Here's a quick buying guide to
gap insurance providers and an estimate of how much each one charges.
But before you get going, you should know that gap auto insurance is not available in all states.
The following states: CT, LA, VA, WA have not allowed the sale of gap insurance in the past.
1. Car Dealership or Finance Company
Buying gap auto insurance from a car dealer or finance company is the most expensive option
costing an average of $578. Gap insurance sold through a dealer is a high profit add on much like
rust proofing or fabric protection and nets the dealer approximately $300 per sale.
2. Purchasing Gap Auto Insurance Online As A Stand Alone Product
These companies basically sell the same vendors single interest coverage offered by dealerships
but concentrate on selling the policies online.
This is another expensive one time payment option costing anywhere from $299 and up with a
contract stipulating that no refunds will be issued for early cancellation.
3. Credit Unions
Many credit unions now offer gap insurance coverage for automobiles at very reasonable rates.
For instance, the Hudson Valley Federal Credit Union of Poughkeepsie, NY, offers gap auto
insurance for a one time payment of $105 which can be spread out over the length of the loan.
A stand alone gap insurance policy from a credit union could be a good option if your current
auto insurance company doesn't offer gap insurance.
4. Your Current Auto Insurance Company
Purchasing gap insurance coverage, if available, from your current insurance carrier is usually the
cheapest option costing only an additional $30 per year.
Here's an example from Travelers Insurance on how the cost of gap insurance is calculated.
Bill Pearse, vice president of auto product strategy and design for Travelers Insurance says
"Travelers calculates gap insurance premiums at roughly 5 percent to 6 percent of the premium
for collision and comprehensive insurance you have on the car.
On a $1,400 annual premium, with $420 to $560 of that typically for collision and comprehensive,
gap insurance would cost $20 to $30. And the cost goes down along with the cost of collision and
comprehensive as the vehicle ages."
Who Can Really Save You The Most?
Lately there's a price war of sorts going on among the major auto insurance companies. If your
current insurance company doesn't offer gap auto insurance it might be an opportune time to
re-evaluate your vehicle insurance coverage and find out who can really save you the most. Who
knows, you might be pleasantly surprised.
The following is a list of major insurers who DO offer optional gap auto insurance online.
Get auto insurance price quotes from at least 2, and possibly 3 different companies to see who
offers the best overall deal - just as you would with any other major purchase.
Note: Esurance gives quotes from multiple companies which is a real time saver. Just bear in
mind that GEICO and State Farm Mutual DO NOT offer gap insurance coverage.
gap insurance providers and an estimate of how much each one charges.
But before you get going, you should know that gap auto insurance is not available in all states.
The following states: CT, LA, VA, WA have not allowed the sale of gap insurance in the past.
1. Car Dealership or Finance Company
Buying gap auto insurance from a car dealer or finance company is the most expensive option
costing an average of $578. Gap insurance sold through a dealer is a high profit add on much like
rust proofing or fabric protection and nets the dealer approximately $300 per sale.
2. Purchasing Gap Auto Insurance Online As A Stand Alone Product
These companies basically sell the same vendors single interest coverage offered by dealerships
but concentrate on selling the policies online.
This is another expensive one time payment option costing anywhere from $299 and up with a
contract stipulating that no refunds will be issued for early cancellation.
3. Credit Unions
Many credit unions now offer gap insurance coverage for automobiles at very reasonable rates.
For instance, the Hudson Valley Federal Credit Union of Poughkeepsie, NY, offers gap auto
insurance for a one time payment of $105 which can be spread out over the length of the loan.
A stand alone gap insurance policy from a credit union could be a good option if your current
auto insurance company doesn't offer gap insurance.
4. Your Current Auto Insurance Company
Purchasing gap insurance coverage, if available, from your current insurance carrier is usually the
cheapest option costing only an additional $30 per year.
Here's an example from Travelers Insurance on how the cost of gap insurance is calculated.
Bill Pearse, vice president of auto product strategy and design for Travelers Insurance says
"Travelers calculates gap insurance premiums at roughly 5 percent to 6 percent of the premium
for collision and comprehensive insurance you have on the car.
On a $1,400 annual premium, with $420 to $560 of that typically for collision and comprehensive,
gap insurance would cost $20 to $30. And the cost goes down along with the cost of collision and
comprehensive as the vehicle ages."
Who Can Really Save You The Most?
Lately there's a price war of sorts going on among the major auto insurance companies. If your
current insurance company doesn't offer gap auto insurance it might be an opportune time to
re-evaluate your vehicle insurance coverage and find out who can really save you the most. Who
knows, you might be pleasantly surprised.
The following is a list of major insurers who DO offer optional gap auto insurance online.
Get auto insurance price quotes from at least 2, and possibly 3 different companies to see who
offers the best overall deal - just as you would with any other major purchase.
Note: Esurance gives quotes from multiple companies which is a real time saver. Just bear in
mind that GEICO and State Farm Mutual DO NOT offer gap insurance coverage.
By Allstate Insurance
New Car Discount - Depending on your state and
the model-year of your vehicle, that brand new car
might help you save up to 15% on your auto
insurance.
Apply Now
the model-year of your vehicle, that brand new car
might help you save up to 15% on your auto
insurance.
Apply Now
By Travelers Insurance
With Travelers, you can save an average of
$453 on auto insurance. Get Better Coverage at
a better price.
Apply Now
$453 on auto insurance. Get Better Coverage at
a better price.
Apply Now
By Esurance
You could save $522 on car insurance. Save
time and money. Get a quote and buy your
policy online – it's that easy!
Benefit from 24/7 customer service and claims
handling.
Get A Quote Now
time and money. Get a quote and buy your
policy online – it's that easy!
Benefit from 24/7 customer service and claims
handling.
Get A Quote Now
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