Allstate Gap Insurance: Protecting Your Investment

If you’re in the process of buying a new car, you may be wondering what gap insurance is and whether you need it. Gap insurance is a type of car insurance that covers the difference between what your car insurance company will pay out if your car is totaled or stolen, and what you still owe on your car loan. Allstate, one of the most trusted names in auto insurance, offers gap insurance to its customers. In this article, we’ll take a closer look at Allstate gap insurance, how it works, and why you might need it.

What Is Allstate Gap Insurance?

Allstate gap insurance, also known as “guaranteed asset protection,” is an insurance product that helps protect you financially if your car is declared a total loss or is stolen and not recovered. Allstate gap insurance covers the difference between the actual cash value (ACV) of your car and the amount you still owe on your car loan or lease. This can help you avoid having to pay out of pocket for a car you no longer have.

Allstate gap insurance is available for both new and used cars, and can be purchased either at the time you buy your car or any time after that. Allstate offers several different gap insurance policies to choose from, so you can customize your coverage to fit your needs and budget.

How Does Allstate Gap Insurance Work?

If your car is declared a total loss or is stolen and not recovered, your standard car insurance policy will pay out the actual cash value (ACV) of your car. The ACV is determined by your insurance company and is based on factors like the age, make, model, and condition of your car. However, the ACV may be less than what you still owe on your car loan or lease.

That’s where Allstate gap insurance comes in. If you have Allstate gap insurance, it will cover the difference between the ACV of your car and the amount you still owe on your car loan or lease. This means you won’t have to pay out of pocket for a car you no longer have, which can be a huge financial relief.

Why Might You Need Allstate Gap Insurance?

There are several reasons why you might need Allstate gap insurance. One of the main reasons is if you have a car loan or lease with a balance that is higher than the actual cash value of your car. This is common when you buy a new car, as the value of a car typically depreciates quickly in the first few years of ownership.

If you’re in this situation and your car is declared a total loss or is stolen and not recovered, you could be on the hook for the difference between the ACV of your car and the amount you still owe on your car loan or lease. This could be thousands of dollars, which could be a huge financial burden.

Having Allstate gap insurance can provide you with peace of mind and financial protection in this situation. With Allstate gap insurance, you won’t have to worry about paying out of pocket for a car you no longer have.

How Much Does Allstate Gap Insurance Cost?

The cost of Allstate gap insurance can vary depending on several factors, including the make and model of your car, the amount of coverage you choose, and your location. In general, Allstate gap insurance tends to be relatively affordable, with many policies costing less than $20 per month.

To get an accurate quote for Allstate gap insurance, you’ll need to provide some basic information about your car and your coverage needs. You can get a quote online or by contacting an Allstate agent.

Allstate Gap Insurance FAQ

Conclusion

Allstate gap insurance is a valuable insurance product that can provide financial protection in the event of a total loss or theft of your car. If you have a car loan or lease with a balance that is higher than the actual cash value of your car, Allstate gap insurance can help you avoid paying out of pocket for a car you no longer have. Allstate offers several different gap insurance policies to choose from, so you can customize your coverage to fit your needs and budget. Contact Allstate or your Allstate agent to get a quote and learn more about Allstate gap insurance.