Gap insurance isn’t required by law in Georgia, but it can be a critical source of financial protection for anyone leasing or financing a new car. Should your vehicle be totaled or stolen, gap insurance will make up any difference between your remaining debt and insurance payout.
There are three sources of gap insurance in Georgia: dealerships, car insurance companies, and lenders such as banks and credit unions.
Of the three, you’ll find the cheapest gap coverage with an auto insurance company.
Not every car insurance company offers gap insurance. You’ll need to comparison-shop to find the best plans and prices.
Who’s got the right car insurance coverage? What should you look for? How do you comparison-shop in a jiffy? We’ll cover all that below.
policy (including comprehensive and collision coverage) and your vehicle is stolen or destroyed, your insurance company will cut you a check. However, the payout—which corresponds to your car’s
, meaning that their loan balance totals more than the value of their car. Depending on the amount of negative equity, you could be on the hook for hundreds or thousands of dollars if your car is destroyed.
That’s why gap insurance—also known as guaranteed asset protection—is so important. Gap insurance covers the difference between your car insurance company’s payout and the remainder of your debt. So even if your car’s market value is low, you can move on to a new car debt-free. It might even pay your insurance deductible!
Most gap insurance in Georgia costs less than $10 per month
Gap insurance in Georgia usually costs between $20 and $300 per year, or $1–$25 per month. The vast majority of plans cost less than $100 per year unless you have a checkered driving record or claims history. Compare that to dealerships and banks, which typically charge a lump sum of $250–$700!
Gap insurance in Georgia must follow these laws:
Dealerships must provide a 30-day “free look period” during which time consumers may cancel gap coverage with a full refund
Dealership gap insurance cannot be sold as a condition for purchasing or leasing a vehicle
If the car loan or lease is terminated (by a total loss, payout, or other reason), the provider of a lump-sum gap insurance product must give the consumer a pro-rated refund
If the consumer wants to cancel gap insurance, they must give the insurance provider written notice within 90 days of their decision
Key Takeaway Gap insurance coverage is cheaper at a car insurance company than with a dealer or bank, but if you decide to buy a waiver, you have the right to a 30-day trial period.
Most major car insurance providers in the state of Georgia offer gap insurance. Here’s a sample of the gap coverage from the five biggest car insurance companies in the state:
offers car replacement assistance—a “superior” form of gap insurance—that will give you an extra 20% on top of the actual cash value of your car after a total loss.
Technically speaking, State Farm and USAA don’t offer true gap insurance. Neither does
is a cinch. All you have to do is sign up, enter some info about your current auto insurance policy, and wait for the best five to seven deals to appear on your smartphone. Take a look at App Store’s top-rated insurance app if you need a place to start (hint: it’s the
Gap insurance in Georgia costs between $20 to $300 per year, with the majority of plans costing no more than $1–$5 per month. Your premiums could climb, however, if you have a bad driving record, a poor credit score, or the need to file an
don’t require motorists to carry gap insurance. It’s an optional type of coverage that drivers may choose to purchase from a dealership, bank, or car insurance company. Gap insurance is recommended when a purchased or leased vehicle’s actual cash value threatens to fall behind its loan amount, as in cases with a long loan term or small down payment.
What is the free look period in Georgia?
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The Georgia Rules and Regulations guarantee consumers a 30-day free look period for gap insurance. If a consumer decides to cancel coverage during this time, the dealership, bank, or business that charged them a lump-sum price must provide a full refund. Beyond the 30-day free look period, gap insurance providers have no obligations to make a waiver cancelable or to guarantee a refund.