Does Costco Auto offer gap insurance?

I’m negotiating prices on a new car, and I just learned that I have to have gap insurance if I want to finance through the dealer. The coverage they’re offering seems really expensive—especially compared to what I pay for insurance with Costco. Can I get gap insurance through Costco?

Sarah Gray · Answered on Feb 06, 2023

Reviewed by Shannon Martin, Licensed Insurance Agent.

Congratulations on your new car purchase! Guaranteed Asset Protection (gap insurance) from a dealer can be costly, so you’ll be happy to hear that Costco Auto does offer gap insurance to policyholders**.

Dealers and lenders often require gap coverage on car loans and leases for new vehicles to ensure they’re covered for the full value of the vehicle if it’s declared a total loss.

Keep in mind, though, that just because Costco offers this coverage doesn’t mean you have to get it through them. By comparing car insurance quotes online, you may be able to find a cheaper policy that includes gap coverage.

MORE: How to cancel gap insurance and get a refund

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