Does Wawanesa Have Gap Insurance?
Wawanesa does not offer gap insurance. If you’ve recently leased or financed a vehicle, here’s how to find affordable alternatives.
Written by Kathryn Mae Kurlychek
Reviewed by Shannon Martin
Gap insurance coverage can help cover the difference between the actual cash value (ACV) of your financed or leased vehicle and the amount left due on your loan—but you won’t be able to purchase this important coverage through Wawanesa.
The good news is, there are other options out there for finding affordable gap insurance—even if you choose to keep Wawanesa as your primary
auto insurance
provider. In this article, we’ll help you decide if gap insurance is right for you, then show you how to find the best rates. MORE: Wawanesa car and home insurance: Everything you need to know
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversDoes Wawanesa offer gap insurance?
No, Wawanesa does not offer gap insurance.
Gap insurance
—also known as Guaranteed Asset Protection, is a type of coverage intended specifically for drivers of financed or leased vehicles. If you’re paying on a vehicle that winds up stolen or totaled, gap insurance can help cover the difference between what the vehicle is worth and the amount you still owe on your loan. It’s not the same as
new car replacement insurance
, which can help you replace your new vehicle if it’s totaled within a certain period of time after purchasing. Rather, gap insurance helps bridge the financial “gap” between your car’s actual cash value
(ACV) and the amount left due on your loan. Many major car insurance companies offer gap insurance—but Wawanesa doesn’t. How does gap insurance work with Wawanesa?
If you already have car insurance coverage through Wawanesa and your vehicle is totaled or stolen, your policy will only cover the loss if you have
collision
or comprehensive insurance
coverage. Comprehensive insurance helps you cover the cost of repairing or replacing your vehicle if it was damaged or deemed a total loss due to something other than a collision (think theft, vandalism, storms or inclement weather, etc.). In the case of total losses, you’ll be able to get a payout for the vehicle’s actual cash value or ACV (minus your
deductible
). The same is true for auto thefts. But if you recently entered into your lease or financing agreement, the chances are you’ll still owe more on your loan than the vehicle’s actual cash value—and if you don’t have gap insurance coverage, you’ll be responsible for paying the remaining loan balance despite no longer having the vehicle.
Wawanesa offers other insurance coverage options, such as
rental insurance
, vehicle manufacturer replacement parts, and special vehicle equipment coverage that can help offset the cost of not having gap insurance—although none of these coverages provide the same safety net as gap insurance.What to do if you have Wawanesa and need gap insurance
If you’re a loyal Wawanesa customer looking for gap insurance, you’ll be out of luck to add it to your existing policy. But that doesn’t mean you can’t still find affordable coverage—many lenders like car dealerships,
credit unions
, and banks sell gap insurance to customers who choose to take out an auto loan with them. If, on the other hand, you’d prefer to keep all your coverages in one place, you’ll have to consider switching to another auto insurer. Companies like
Progressive
and Nationwide
offer affordable gap insurance to policyholders, and will usually provide you with a quote ahead of time. If you decide to shop around for a new insurer, it’s a good idea to compare rates from multiple companies
to find the best price. Is gap insurance worth it?
Gap insurance is usually worth the cost.
For an average of just $20 to $40 per year (on top of your typical auto insurance payment), you can purchase some extra peace of mind—and potentially save thousands of dollars in a worst-case-scenario situation. Even better, once you’ve paid enough on your loan that you no longer owe more than the vehicle’s worth, you can cancel your gap insurance and even qualify for
a refund
for what you spent on the coverage.What is the most gap insurance will pay?
Ultimately, exactly how much your gap insurance coverage will pay out depends on a number of factors, including your provider, the value of your vehicle, your loan terms, and more. The most it will pay is the difference between your vehicle’s AVC and the loan balance. Some companies cap gap payouts to 25% or 50% over the vehicle's ACV or with a flat amount, such as $25,000. Make sure to read the fine print of any gap policy you may purchase.
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