Does State Farm Offer GAP Insurance?

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Does State Farm Offer GAP Insurance?

Are you in the market for a brand-new car but don’t want to worry about unexpected expenses like repair costs or a total loss from an accident? Many drivers are now turning to GAP insurance, and thankfully State Farm offers just that.

But before you decide if GAP insurance is right for you, it’s essential to understand what it is and how it works. In this blog post, we’ll cover everything you need to know about State Farm’s GAP coverage so you can make an informed choice!

State Farm offers GAP Insurance:

State Farm is one of the largest insurance companies in the US, and you might think the company would offer GAP insurance. However, like many other auto insurance companies, they don’t provide this coverage directly. Still, they have a partnership with a third-party company that offers gap protection for customers who opt for it.

State Farm has partnered with American Heritage Insurance Services Inc. to provide GAP coverage for its customers. You can purchase GAP coverage from State Farm through American Heritage Insurance Services Inc.,

Which has specialized in this insurance for over 30 years. They offer different coverage options, including GAP Advantage, which covers the difference between the actual cash value of your vehicle and the remaining balance on your loan or lease.

One thing to note is that GAP insurance is only available if you have an existing auto policy with State Farm. The coverage can be added to your policy at any time.

The insurance cost will depend on factors like the make and model of your car, your loan or lease balance, and the loan or lease term. However, the cost is generally around $20 to $30 per year, making it an affordable option for many.

It’s also important to note that not all cars are eligible for GAP insurance. For instance, if you’re purchasing a used vehicle, there might be restrictions on the loan or lease terms for gap protection coverage, or it might not be available.

In such cases, you may have to look for other options. Other situations where you might not be eligible for GAP insurance include if your car is a salvage title, owns the car outright, or has already refinanced your car loan.

Other Companies That Sell GAP Insurance

Buying a new car is always an exciting experience, especially when it’s brand new and shiny. But what happens when something goes wrong with it, like a car accident? That’s when you’ll be thankful for an insurance policy that covers the gap between the value of your car and what you still owe on it.

That’s where GAP insurance comes in. But did you know that several other companies besides your auto insurance provider offer GAP insurance? In this article, we’ll look at some of these companies and what they offer.

Here we provide a list of companies that sell GAP Insurance.

• Dealerships
• Specialty insurance companies
• Credit Unions
• Third-party providers
• Your auto insurance company

Now let’s discuss all points in detail…

Dealerships:

Most car dealerships offer GAP insurance policies through their finance departments. These policies are usually priced higher than you can get through other companies, but they’re also easier to obtain since you’re already at the dealership.

Ask about their cancellation policy and compare their rates with other providers to ensure you get the best deal.

Specialty insurance companies:

Some insurance companies specialize in offering GAP policies exclusively. These companies may have more affordable rates and coverage options than dealerships. Examples of these companies include Ally, Nationwide, and State Farm.

Credit Unions:

If you’re a credit union member, you may be able to purchase GAP insurance through them. Credit unions typically offer lower rates than dealerships and other financial institutions, but you’ll need to become a member first. Make sure to ask about their coverage limits and cancellation policy.

Third-party providers:

Some independent insurance providers offer GAP insurance as well. These providers may have lower prices because they have less overhead than larger companies. However, research and read reviews before purchasing a policy from a third-party provider.

Your auto insurance company:

Many providers offer GAP coverage as part of their more significant policies. This is often known as “loan/lease gap coverage.” Coverage limits and premiums will vary, so ask about their policy specifics.

Conclusion:

Adding GAP insurance to your auto policy can provide financial security. State Farm offers this option to its customers through a partnership with American Heritage Insurance Services Inc. Although the cost varies depending on multiple factors, it’s an affordable option for many.

While it may not be available for all cars, it’s worth checking the eligibility criteria to decide whether it’s right for you. If you’re a State Farm customer looking for GAP coverage, don’t hesitate to contact their team to explore your options and get the guidance you need to make the right decision.