Does AARP Have Gap Insurance?

Gap insurance is an available coverage for AARP members who drive a financed or leased vehicle. Here’s how to get it.
Written by Kathryn Kurlychek
Reviewed by Shannon Martin
AARP members can purchase gap insurance as additional coverage for their financed or leased vehicle through the company’s auto insurance program. 
Drivers who have been around the block before in leased or financed vehicles may already be familiar with gap insurance—but if you’re new to leasing or have uncovered the term in your loan agreement for the first time, you may be wondering how to get it—and what it costs. For AARP members, gap insurance is available. Here’s how to get it. 
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Does AARP offer gap insurance?

Yes, AARP offers gap insurance.
Gap insurance
—or Guaranteed Asset Protection Insurance—covers you in instances when a vehicle that you’ve leased or financed is stolen or totaled, by bridging the “gap” between what the vehicle is worth (or its actual cash value) and the amount left due on your loan or lease. 
Why is gap insurance important? Because new vehicles tend to lose their value very quickly, which often leaves drivers in a position of owing more on their vehicle than it’s worth. In the event your vehicle is stolen or deemed a
total loss
, you won’t be exempt from paying off the loan—and your comprehensive and collision coverage will only pay for the car’s actual cash value (ACV). 
In other words, gap insurance protects you from owing money on a car you no longer have

How does gap insurance work with AARP?

Because gap insurance helps protect you and your leased or financed vehicle, lenders often make purchasing this type of coverage a requirement of your loan
The good news is, if you already have an AARP policy you can purchase gap insurance as an add-on for your existing policy. You’ll need to be an AARP member before signing up with The Hartford (the insurance company with the AARP car insurance contract) to qualify for AARP car insurance.
Regardless of whether you’re interested in establishing an AARP gap insurance policy or are already an existing AARP member, you can call an AARP representative at (888) 413-8970 for more information or to receive a quote. 

Is it better to buy gap insurance from the dealership or your insurance company?

Insurance companies like AARP aren’t the only option for finding gap insurance. Other types of lenders—such as banks and
credit unions
—also sell gap insurance. 
Additionally, many car dealerships offer gap insurance as a part of the purchase or loan agreement—particularly if you’re already financing the vehicle through the dealership. Sometimes, gap insurance may even be included automatically in your paperwork unless you specifically decline the coverage. But buyers be warned: it’s usually more expensive to buy gap insurance through a dealership or lender
Here’s why: if gap insurance is included as a part of your loan, it’ll automatically accrue interest along with the rest of your loan. That means you’ll pay more over time for coverage that, for all intents and purposes, doesn’t have to cost that much. For example, car insurance companies typically charge just $20 to $40 a year to add gap insurance coverage to your policy. 

Is gap insurance worth it?

Maybe gap insurance wasn’t made a requirement of your loan—if that’s the case, should you still buy it? 
The answer is probably. Most of the time, gap insurance is a good investment—it costs a few extra bucks a month to bring perpetual peace of mind. With
rising interest rates
and
longer loan terms
, more and more drivers find themselves
upside down on their car loan
— meaning they owe more money on their cars than they’re worth. Gap insurance offers an affordable solution. 

How to find the best gap insurance

As with car insurance, if you’re looking for the cheapest possible gap insurance out there, comparing quotes from multiple providers is worthwhile. Just keep in mind that not every insurance company offers gap insurance coverage. For example,
GEICO
—one of the biggest car insurance providers in the US—doesn’t sell gap insurance. 
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