Are you looking for companies offer auto gap insurance in Austin, Texas? GAP insurance is available in most states; however not all. CT, LA, NH, NY, VA, VT and WA do not allow vehicle owners to carry this type of coverage.
- 1 What is GAP Insurance?
- 2 Companies offer Auto gap insurance in Austin?
- 3 How much is a gap insurance?
- 4 Cheapest auto insurance quote in Austin, Texas
- 5 Accident trends in Texas
- 6 The primary benefit of having auto insurance in Texas
- 7 Do I have gap insurance?
- 8 Who Should NOT Buy GAP Insurance?
- 9 Best 5 Gap Insurance Companies in Texas (United States)
What is GAP Insurance?
Guaranteed Auto Protection Insurance (GAP Insurance) was originally created to protect drivers from the high prices of new vehicles. If a customer gets into an accident and totals their vehicle, resulting in a full loss of the vehicle most of the time gap insurance will kick in to cover the difference between what the current value of your car is and the loan that is still owed on the vehicle.
Companies offer Auto gap insurance in Austin?
Most insurance companies have GAP insurance as an option, but not all, so be sure to ask before you decide on an insurance provider. Contact any Insurance Agency in Austin or in Texas and ask for GAP Insurance.
How much is a gap insurance?
GAP insurance is obtained to provide coverage between jobs. You leave one job for another but you have no health insurance coverage available for the first 90 or 120 days. You would obtain a quote fir insurance, say you need 90 day coverage, then usually required to pay in full in advance. The cost depends on several factors: Who is seeking the coverage? How old? What gender? For what term: 30–60–90–120 days. Level of coverage desired; high pmts, less deductible or high deductible smaller coverage. The best way to locate gap insurance providers is with an internet search.
Gap insurance provided by a licensed insurance agent is usually about $10/month on your auto insurance policy. It is only needed for 3–3½ years. So $360–400 is what that will cost.
Back to the dealer, I have had clients tell them my price and they will cut it down to $250–300 as that is still profit to them.
However, with insurance company gap the insurer pays off the vehicle all together, from date of loss. A dealer plan, after the insurer eventually pays their portion of the payoff, then you can go to the dealer and apply for their protection plan, they will investigate and dead their feet in paying… with this plan you must continue making your loan payments until the dealer plan pays off the loan.
Cheapest auto insurance quote in Austin, Texas
Everybody practically knows that there is no such thing as cheap auto insurance in Texas. In the wake of paying for your vehicle, placing fuel in your car, and paying to keep up your car, acquiring accident coverage in Texas is a standout amongst the most costly parts of owning your vehicle. Some people have thought about whether buying auto insurance in Texas is justified regardless of the cost. A simple review of traffic statistics in Texas demonstrates why having auto insurance in Texas is so important.
Accident trends in Texas
Every year, the Texas Department of Transportation arranges all of the traffic details in the states. Included in this data is the majority of the accidents that occurred on Texas highways and on Texas streets. As per the report that was made for the 2013 calendar year, there was one car crash every 71 seconds. From those accidents, one individual was harmed approximately 2 minutes and 16 seconds. At regular 2 hours and 36 minutes of car crashes brought about fatalities. These statistics alone underscore the advantage of having an auto insurance in Texas.
The primary benefit of having auto insurance in Texas
Is that it provides you as a driver with an economic safety net. In our society, many people are living paycheck to paycheck. They do not have a back pile of cash set aside just in case there is an emergency. As mentioned in the previous section, automobile accidents are expensive. They can easily cost into the tens of thousands of dollars. Even minor accidents that do not result in injury can run into the thousands of dollars. For this reason, many individuals have decided that it is better to pay the monthly insurance fee as opposed to finding themselves in an accident and losing everything they have.
Do I have gap insurance?
How do you find out if you have gap insurance?
- Look at your auto policy. However, in most cases these things are so complicated you need to be an agent to be able to read it.
- Call your insurance agent and ask them what coverage you have. They will be able to tell you if you have coverage. More importantly, they will be able to tell you if you need it.
The purpose of gap insurance is to cover the difference between the covered amount on the policy (which amounts to the money you would get – minus deductible – if the car was totaled) and the actual cost to pay off the loan or lease on the vehicle.
Once the car is a few years old, and you’ve been paying on it, the actual total owed on the vehicle loan will be less than what the car would be worth on the market, which is what your insurance covers you for. If that’s the case, you no longer need “gap” insurance as there is no gap to cover.
Your insurance agent is the best one to tell you if you still need it, or if you don’t have it and you need it, how to get it.
You do NOT want to buy or lease a new car without it, otherwise, you could easily be in a position where you owe thousands more than your insurance would cover.
Who Should NOT Buy GAP Insurance?
Buyers who already have monthly payments layed out and are onto of making sure that they will not be making payments for a long period time. If this is your case than GAP insurance may not be worth buying. The cost of GAP insurance may be too high for the short period you will be making payments.
Best 5 Gap Insurance Companies in Texas (United States)
Not all companies offer gap insurance and the companies that do offer it may not offer it nationwide. Here are the best insurance companies in America for gap insurance:
Progressive is the third-largest car insurance company in the United States. The company offers gap insurance in Texas, although it’s sometimes advertised as “loan/lease payoff insurance”.
Drivers can easily add gap insurance to their collision and comprehensive coverage. Progressive’s gap insurance is limited to 125% of your vehicle’s actual cash value. It may or may not cover your deductible, depending on your claim.
Overall, Progressive’s gap insurance minimizes the ‘gap’ between the actual cash value of your vehicle and the amount owing on that vehicle.
Allstate offers gap insurance in most states, included gap insurance in Austin, Texas. Also known as guaranteed asset protection insurance, Allstate’s gap (or ‘GAP’) insurance is available for vehicles worth up to $100,000, although covered losses are limited to $50,000. That’s a higher amount than many of Allstate’s competitors.
Allstate’s gap insurance covers deductibles up to $1,000 as well, which can reduce your out of pocket expenses in the event of a total loss. If you crash a newer vehicle, then you might receive close to the full value of that vehicle in compensation without paying the deductible.
You can buy Allstate’s guaranteed asset protection insurance from dealers nationwide.
3. American Family
American Family offers gap insurance to customers in 19 states, include auto gap insurance in Austin, Texas. As with other American Family insurance products, American Family gap insurance can be purchased through independent agents.
To qualify for American Family gap insurance, you first need to have an auto insurance policy with American Family. That policy needs to have collision and comprehensive coverage.
Amica has been ranked as one of the best car insurance companies in America in recent years. In fact, the company recently took home the top spot in the J.D. Power rankings, which analyzes data from car insurance customers across the United States. Specifically, Amica received the highest rating in J.D. Power’s 2019 customer satisfaction report for the New England region.
Amica has strong customer service, claims satisfaction, and financial stability ratings. The company is also one of America’s few major providers to offer auto gap insurance in Austin, Texas.
Amica’s gap insurance works like the gap insurance offered by other companies here, covering the difference between the value of your vehicle and the amount you owe on that vehicle.
Nationwide is another major insurance provider that offers gap insurance. Gap insurance is an optional add-on available on certain vehicles. And, of course Nationwide provide auto gap insurance in Austin, Texas.
Nationwide’s gap insurance can cover deductibles, theft, total loss, and negative equity. Like other gap insurance policies listed here, Nationwide’s gap insurance adds more protection to your car insurance.