Does GEICO Sell Gap Insurance?
Last Updated on February 5, 2026
GEICO is a major auto insurer, but it does not sell gap insurance as part of its auto insurance offerings.
If you finance or lease a vehicle, gap coverage can be one of the most important “nice-to-have” protections—because a total loss settlement is based on your car’s actual cash value (ACV), not your loan payoff.
- GEICO Doesn’t Offer Gap: GEICO’s auto insurance offerings do not include gap insurance, so you’ll need another source if you want it.
- ACV vs. Loan Balance Is the Problem: Total loss settlements are generally based on actual cash value, which can be less than what you owe early in a loan.
- You Still Have Options: Many people buy gap through a lender, a dealership, or an insurer that sells a loan/lease payoff endorsement.
- Paperwork Matters: Gap is sometimes already included in leases or financing—confirm before you pay for duplicate coverage.
- Does GEICO Sell Gap Insurance?
- What Gap Insurance Covers
- How Total Loss Payouts Work Without Gap
- Gap Insurance Example
- How to Buy Gap Insurance If You Have GEICO
- How to Tell If You Already Have Gap Coverage
- Is Dealership Gap Insurance Worth It?
- Final Word: GEICO and Gap Insurance
- FAQs on GEICO Gap Insurance
Does GEICO Sell Gap Insurance?
No. GEICO’s own explainer notes that its auto insurance offerings don’t include gap insurance. If you need gap coverage, you’ll typically buy it through your lender, your dealership, or a different insurance company that offers it as an add-on endorsement. (Availability and product names can vary by state.)
Helpful reference: GEICO’s gap insurance overview
What Gap Insurance Covers
Gap insurance covers the difference (the “gap”) between your vehicle’s actual cash value and what you still owe on your loan or lease if the car is stolen or totaled.
In plain English: if your car’s value drops faster than your loan balance, gap helps keep you from paying thousands out of pocket after a total loss.
For a regulator-backed definition, the Consumer Financial Protection Bureau explains gap as an optional product that helps cover the difference between what you owe and what auto insurance pays after a total loss: CFPB guide to GAP insurance.
How Total Loss Payouts Work Without Gap
When a vehicle is declared a total loss, the claim settlement is generally based on ACV—what the vehicle was worth immediately before the loss—minus any applicable deductible. If your loan payoff is higher than the settlement amount, you’re typically responsible for the remaining balance unless you have gap coverage elsewhere.
GEICO explains the total loss process (including who gets paid first when there’s a lienholder) here: GEICO total loss process.
Gap Insurance Example
Here’s a simple example of where the “gap” shows up:
- You finance a vehicle with a small down payment.
- After a year, you still owe $28,000, but the vehicle’s ACV is $22,000.
- Your insurer pays ACV (minus your deductible). If that settlement doesn’t cover the loan payoff, you owe the remainder.
- Gap coverage (when you have it) is designed to help pay the difference between the settlement and what you still owe.
Quick tip: Gap usually matters most early in the loan—especially with long terms, low down payments, or negative equity rolled into the new loan.
How to Buy Gap Insurance If You Have GEICO
Even if GEICO is your insurer, you can still protect yourself from a gap by buying coverage elsewhere.
| Where You Can Buy It | How It Usually Works | What to Watch For |
|---|---|---|
| Lender or Bank | Offered as part of the loan or as an add-on through the lender. | Costs may be financed into the loan (meaning you may pay interest on it). |
| Dealership (F&I Office) | Often offered at purchase/lease signing and rolled into monthly payments. | Pricing can vary widely; ask for the total cost and cancellation/refund rules. |
| Another Auto Insurer | Some insurers sell gap or a similar “loan/lease” add-on endorsement. | Coverage rules and payout limits vary—read the endorsement details. |
Start by checking your paperwork to see if it’s already included: many leases include gap automatically (sometimes as a waiver) and some lenders add it to financing.
If you’re shopping around, we keep a running list of options here: top companies to buy gap insurance from.
If you want a carrier-specific example, here’s how it works with a major competitor: State Farm gap insurance.
How to Tell If You Already Have Gap Coverage
Gap coverage is easy to miss because it might be listed as “Guaranteed Asset Protection,” “GAP waiver,” or something similar in your lease/loan documents. If you’re unsure, this checklist can help: do I have gap insurance?
If you bought it through a dealership, you may also have cancellation or refund rights if you pay off the loan early or trade the car in—check your contract and your lender’s rules.
Quick tip: If you’re offered gap at the dealership, ask for the total dollar cost, whether it’s cancellable, and how refunds work if you refinance or pay the loan off early.
Is Dealership Gap Insurance Worth It?
Dealership gap can be convenient, but it’s often one of the pricier routes. If you’re deciding whether to buy it at signing, this guide breaks down what to expect: buying gap insurance through a dealership.
Final Word: GEICO and Gap Insurance
GEICO doesn’t sell gap insurance, but you’re not stuck. If you’re financing or leasing, review your loan/lease paperwork first to confirm whether gap is included. If it isn’t, compare lender, dealership, and insurer-based options to find coverage (and cancellation terms) that make sense for your budget.
