Does USAA Car Insurance Have Gap Insurance?

Gap insurance, also known as Guaranteed Auto Protection (GAP) insurance, is an optional add-on car insurance coverage that helps you cover the “gap” between what you owe on your car loan and the actual cash value of your car in the event it is stolen or totaled. When you buy a new car, depreciation quickly sets in, and the value of your car will drop significantly over time. If you are in an accident and your car is totaled, the insurance company will only pay you the actual cash value of the car, which is usually much less than what you owe on the loan. That’s where gap insurance comes in.

Gap insurance is important for anyone who has taken out a loan to buy a car. Fortunately, USAA car insurance does offer gap insurance coverage. USAA gap insurance can help bridge the gap between the actual cash value of your car and the balance of your loan. It can also cover the cost of any taxes and fees that may be associated with the loan.

USAA gap insurance is available to anyone with a USAA car insurance policy. It is an add-on to the standard policy and can be added at any time. If you are considering adding gap insurance to your car insurance policy, it is important to understand how it works and how much it will cost. USAA gap insurance is based on the amount of coverage you choose and the value of your car.

How Does USAA Gap Insurance Work?

USAA gap insurance works by providing additional protection in the event your car is totaled or stolen. If you have a loan on the car, gap insurance will cover the difference between the actual cash value of the car and the amount you still owe on the loan. This can help you avoid any potential financial hardship if your car is in an accident or stolen. USAA gap insurance also covers applicable taxes and fees associated with the loan.

When you add gap insurance to your USAA car insurance policy, you will have to pay an additional premium. The premium cost will depend on the amount of coverage you choose, the value of your car, and the length of your loan term. USAA gap insurance is available for up to seven years, and you can choose the amount of coverage you want. The coverage is typically offered in increments of $1,000, with a maximum of $25,000.

Other Benefits of USAA Gap Insurance

In addition to providing additional protection in the event of an accident or theft, USAA gap insurance also provides several other benefits. For example, if you trade in your car before the loan is paid off, gap insurance will pay the difference between the loan balance and the value of the trade-in. This can save you from having to pay off the loan in full out of pocket.

USAA gap insurance also provides coverage for any negative equity you may have in your car. If you owe more money on your loan than the car is worth, gap insurance will cover the difference. This can help you avoid having to pay off a loan balance that is higher than the value of the car.

USAA gap insurance is an important coverage to consider if you have taken out a loan to buy a car. It can provide additional protection in the event of an accident or theft, as well as other benefits. USAA gap insurance is an add-on to the standard policy and is available to anyone with a USAA car insurance policy.