Have you ever wondered if Esurance has Gap insurance (Lease coverage & quotes)? Well, look no more. We´ve got you covered.
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Does Esurance Have Gap Insurance?
Yes, Esurance does offer gap insurance. There are some minor limitations, but the coverage is offered in all United States of America areas.
Gap insurance is important for anyone who took out a loan to purchase their vehicle. If your car is totaled, gap insurance can help you still pay off your loan.
Understanding gap insurance can help you protect both your vehicle and your finances in case of an accident.
Read also: How Much is it to Buy Back a Totaled RV from Insurance?
What is Gap Insurance?
Gap insurance is designed to help make up the difference between the current market value of a vehicle and the loan you have taken out to pay for that vehicle.
This is especially important if the value of your car has depreciated since you purchased it.
Read also: Is RV GAP Insurance Worth It? [Guide for Nationwide Camper & RV]
Why is Gap Insurance Important?
Once you start driving your car, the value begins to depreciate. This means it is worth less than the amount that you paid for it. Most insurance policies offer coverage for the current total worth of the car. That way, if your vehicle is totaled, the insurance can cover the value of the car.
Generally, this will help cover your expenses. However, if you have not paid a large deposit or much of your loan back, the current, depreciated value of your car may be worth less than what you still owe on the loan.
Gap insurance can help you cover the difference between what your insurance covers based on the current value of your car and the amount you still owe on your loan. This can help you still pay off your loan on time.
Read also: When Does Gap Insurance Not Pay (9 True Reasons)
Does Esurance Offer Gap Insurance Options?
Esurance does offer gap insurance. Esurance’s gap insurance option will only pay for up to 25% of the actual cash value of the vehicle. This is considered lease/loan coverage.
In real life, this means that if your car is valued at $10,000, the gap insurance (lease/loan coverage) offered by Esurance will only cover up to $2,500 to help you pay off your loan. In many cases, that is plenty of money.
However, if you are concerned about needing more covered, you may need to look into other insurance options.
Does Esurance Have any other Requirements for Gap Insurance?
In addition to covering 25% of the actual cash value of the vehicle, there are a few other requirements to qualify for gap insurance coverage through Esurance.
The car you are covering needs to be leased or financed. If the car was not leased or financed, you should not even need gap insurance, so you will not qualify for a policy with it.
Another requirement for gap insurance through Esurance is collision/comprehensive coverage. This coverage is required because gap insurance is meant to pay for what comprehensive insurance cannot cover on your loan.
Esurance’s coverage also is limited in a few ways for what it will cover. It will not cover late fees, past-due payments, or any extended warranties on your vehicle.
As you consider Esurance for gap insurance, it will help you to know that the coverage is not dependent on who is at fault in an accident.
Whether the accident was your fault or not, the loan or lease gap coverage will still be effective.
Read also: RV Accidents Statistics: 19 Facts You Should Know (Explained)
How Much Does Gap Insurance Cost? (Quote)
In general, you can expect to pay between 5 and 10 dollars per month for gap insurance.
The price of gap insurance will vary based on which car you have, and often how much you have taken out on your loan.
Less expensive vehicles will require less gap insurance, and your monthly payment will be lower.
How Do You Know if Gap Insurance is Right for You?
Deciding which insurance coverages, you need is difficult. It can be hard to balance the risks you have with your particular situation and precisely what you need to be prepared for.
In general, gap insurance is a good idea if you:
- Paid less than 25% of the value of the vehicle for the down payment. (You owe 75% of the cost or more on your loan)
- Have a particularly long finance period (60 months or more)
- Anticipate the driver of the vehicle may total it before it is paid off in its entirety. This may be a consideration to keep in mind if the driver is inexperienced or lives in a city with high traffic density and many accidents.
- Leased the vehicle, rather than purchased it. Gap insurance is often required in these circumstances.
When Do You Need to Purchase Gap Insurance?
Most insurance companies will require you to purchase gap insurance within 30 days from the vehicle’s purchase date.
This is important in case an accident occurs within the first month of owning the car. That is when you would be in big trouble with your loan without gap insurance.
How Can you Find the Approximate Value of Your Vehicle?
The easiest way to approximate the value of your car is through using Kelley Blue Book. From the website, you can click on “My Car’s Value,” which will take you to a page that will ask you several questions to help determine the value of your car.
If you want to prepare the information you will need in advance, you will need:
- The year of your vehicle
- The make of your vehicle
- The mileage of your vehicle
- Your current zip code
If you do not know where to find this information, do not worry. The make of your vehicle is the name of the manufacturer. That would include company names like “Toyota,” “Hyundai,” “Ford,” “Chevrolet,” and more.
The model of the vehicle is the name of the specific product you purchased from that manufacturer. Examples would be “Sonata (from Hyundai),” “RAV4 (from Toyota),” “Fusion (from Ford),” and more.
“The year and make of your vehicle will likely be located in the owner´s manuel or near the VIN of the car. The VIN is often located on the left side of the dashboard near the steering wheel.”
However, this is not the only option.
You can also find the make by looking at the logo represented by the hood ornament, or by a label on the back of the vehicle. The back of the car usually says the model as well.
Most vehicles report the total mileage of the vehicle on the dashboard. For new cars, you often have to turn the car on to find the number of miles.
Knowing the current value of your vehicle can help you determine if you still need gap insurance or not to cover your lease.
Read also: Where to Find VIN Number on Camper and Trailer? | Detailed Guide
Final Thoughts
Gap insurance is key for people with large loans on a vehicle. It is also crucial (and often mandatory) for anyone leasing a car.
If the vehicle is totaled, gap insurance will help cover the remaining costs on the loan that exceed the total value of the vehicle.
Esurance is a renowned insurance company that does offer gap insurance. They will cover 25% of the actual cash value of the car.
The amount you pay per month will depend on your vehicle, but it is generally between 5 and 10 dollars per month.
References
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