Why can't I get gap insurance on my USAA car loan?

I'm trying to get gap insurance on my new car loan. The dealership is saying that they can't add it because I'm going to be getting financing through USAA. Is this true? Do I need to find another bank if I want to add gap insurance?

Answer provided by
Emily Maracle
Answered on Apr 30, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“There was a set of amendments passed in 2017 to the Military Lending Act that limited the amount of credit military members could finance.
However, the Department of Defense recently revised the amendments, making it easier for military servicemembers and their dependents to access products like gap insurance.
It may be that the dealership you’re working with is unaware of the changes. Another explanation could be that the dealership doesn’t allow gap insurance to be added to policies with outside financing.
If you reach back out to the dealership and they still aren’t able to add gap insurance, you do have options. Many insurance carriers offer gap insurance coverage that you can add to your auto policy, allowing you to still finance your vehicle with USAA. “

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