USAA Gap Insurance: 7 Essential Things You Need to Know

What is USAA Gap Insurance?

USAA gap insurance is a type of insurance policy that pays off the difference between the actual cash value of your car and the amount you still owe on your loan if your car is totaled or stolen. This can be a valuable benefit if your car is worth less than what you owe on it.

How Much Does USAA Gap Insurance Cost?

The cost of USAA gap insurance varies depending on the age of your car, the loan amount, and your driving history. However, you can expect to pay between $100 and $500 for a policy that covers a new car. The cost of coverage for an older car will be less.

Is USAA Gap Insurance Worth It?

Whether or not USAA gap insurance is worth it depends on your individual circumstances. If you have a new car or a loan with a high interest rate, gap insurance can be a good investment. However, if you have an older car or a loan with a low interest rate, gap insurance may not be worth the cost.

How to Get USAA Gap Insurance

You can get USAA gap insurance through your local USAA office or online. To get a quote, you will need to provide your car's year, make, model, and VIN. You will also need to provide your loan amount and your driving history.

What Are the Benefits of USAA Gap Insurance?

USAA gap insurance offers a number of benefits, including:

• Peace of mind: Knowing that you won't be upside down on your loan if your car is totaled or stolen can give you peace of mind.
• Financial protection: Gap insurance can help you avoid having to pay out of pocket to cover the difference between your car's actual cash value and the amount you owe on your loan.
• Convenience: You can get USAA gap insurance quickly and easily through your local USAA office or online.

What Are the Drawbacks of USAA Gap Insurance?

There are a few potential drawbacks to USAA gap insurance, including:

• Cost: Gap insurance can be expensive, especially if you have a new car.
• Limited coverage: Gap insurance only covers the difference between your car's actual cash value and the amount you owe on your loan. It does not cover any other costs, such as your deductible or the cost of a rental car.
• Unnecessary: Gap insurance may not be necessary if you have a low-interest loan or if you have a lot of equity in your car.

FAQs About USAA Gap Insurance

Here are some of the most frequently asked questions about USAA gap insurance:

• How long does USAA gap insurance last? USAA gap insurance lasts for the term of your loan.
• What happens if I cancel my USAA gap insurance policy? If you cancel your USAA gap insurance policy, you will not be eligible for a refund.
• Can I get USAA gap insurance if I have a lease? Yes, you can get USAA gap insurance if you have a lease.
• How do I file a claim for USAA gap insurance? You can file a claim for USAA gap insurance by calling 1-800-531-USAA (8722).
• What is the deductible for USAA gap insurance? The deductible for USAA gap insurance is $0.
• What is the maximum coverage for USAA gap insurance? The maximum coverage for USAA gap insurance is $100,000.

Conclusion

USAA gap insurance can be a valuable benefit if your car is worth less than what you owe on it. However, it is important to weigh the benefits and drawbacks of gap insurance before deciding if it is right for you.