USAA GAP Insurance (Costs, Coverage, & Quotes)

While looking for USAA GAP insurance, you'll find that the insurer doesn't offer that kind of policy anymore. However, affordable USAA GAP insurance may become available again in the future.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Dec 6, 2021

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Here's What You Need to Know

  • USAA does not currently offer GAP insurance
  • The insurer does offer many discounts, however
  • USAA offers some of the lowest rates in the country due to its exclusivity

When you begin looking for USAA GAP insurance, you may be disappointed to find out that the military-based insurer doesn’t offer it. However, understanding this car insurance policy can help you find quality GAP insurance at another company.

If you’re trying to find rates for USAA GAP insurance, enter your ZIP code into our free quote tool to see what you could pay for this type of coverage with other companies.

How to Get USAA GAP Insurance

Currently, USAA doesn’t offer GAP coverage on leased vehicles but provides some options for cars that were purchased outright.

If you already have a policy with USAA, this GAP insurance coverage will likely cost you in addition to your standard rates. It may be worth discussing with a USAA agent whether or not the coverage will help you.

Below are the average annual rates for a USAA auto insurance policy in Florida. These rates are compared to those of other popular insurers by state average.

USAA Rates in Tallahassee, FL Compared to Other Providers
GroupAnnual PremiumCompared to State Average (+/-)Compared to State Average (%)
Allstate$7,440.46$2,760.0058.97%
GEICO$3,783.63-$896.83-19.16%
Liberty Mutual$5,368.15$687.6914.69%
Nationwide$4,339.60-$340.86-7.28%
Progressive$5,583.30$902.8419.29%
State Farm$3,397.67-$1,282.79-27.41%
USAA$2,850.41-$1,830.05-39.10%
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As you can see, USAA offers the lowest insurance rates in the state by a noticeable margin.

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What is GAP insurance?

What is GAP insurance for cars? According to the Insurance Information Institute, GAP insurance is meant to cover the difference between what you owe on a leased vehicle and its depreciated value at the time you file a claim.

When you buy a new or used car, it begins to lose value the minute that you drive it off the lot. If you’re making smaller payments on the vehicle and get in a bad crash or the vehicle is stolen, then you may owe more on your loan than your insurer will pay out.

In this case, GAP insurance will cover the amount between what your insurer will pay out and what you still owe on your loan.

What is GAP coverage used for? Whether or not GAP coverage will be useful depends on your situation and the value of your car. You’ll get more value out of GAP insurance if you’re making smaller payments on a vehicle that is quickly depreciating.

What does GAP insurance cover?

What is GAP insurance and what does it cover? When you get a new car, you may want to consider getting GAP insurance to make sure that you don’t lose money if something happens to the vehicle. Typically, the best situations for car GAP insurance include:

  • You made a down payment that was less than 20%
  • You’re financed for over 5 years
  • Your vehicle is leased (may be required in this case)

There are other situations, and your insurer or car dealer may offer suggestions to make sure that you don’t end up losing out if the worst happens.

Do I need GAP insurance if I have full coverage?

Your full coverage will only cover the current cash value of your vehicle, which may have depreciated to a value significantly less than what you still owe on your loan.

In this case, you’ll likely have to finish paying off your balance before you can lease or buy a new vehicle. If you’re left paying a large balance, then that prevents you from getting a new vehicle for that much longer. GAP insurance can help ensure that you get paid enough to finish out your loan.

How much is GAP insurance?

The GAP insurance cost will vary between car insurance companies and depends on factors like the type of vehicle and your personal circumstances.

Some report that you can find GAP insurance for a flat rate of $500 to $700 from dealerships, while an insurer may offer it for under $40 a year. If you go with the insurance option, it only stands to increase your full coverage rates by about 5%-6% per year.

Potential Tax Breaks

Receiving a large amount of money to cover the rest of your loan might increase your yearly income to another threshold, depending on your car’s value. If you use your car for personal and business reasons, you may be able to write this sum off so that it isn’t registered as income on your taxes.

USAA and GAP Insurance

Currently, USAA does not offer GAP insurance on leased vehicles. This is due to some restrictions placed on military lending institutions, although some have been lifted in recent years.

While USAA doesn’t offer GAP insurance directly, the insurer does provide resources to inform its clients about the pros and cons of enrolling in a GAP insurance policy.

What benefits does USAA offer?

The United Services Automobile Association is an insurance company that is designed specifically for active-duty military members, veterans, and their families. Through this exclusive network, USAA provides unique savings opportunities that aren’t available with other insurers.

In addition to the savings on rates, USAA offers other benefits to its clients in the form of:

  • Rewards for safe driving
  • Multiple discounts
  • Accident forgiveness programs

With USAA, you can save a fair amount while insuring your vehicle with a company that values and rewards the sacrifices you and your family have made.

How to Get Lower Rates at USAA

To get lower rates with any insurer, you’ll want to lower your perceived risk level. Insurance companies evaluate your risk of filing a claim when setting your rates. With a lower risk level, you’re given cheaper rates.

Some ways you can lower your rates include:

  • Drive safely – Your driving history affects your insurance rates, so any speeding tickets or past accidents will stand out to insurers. Drive safely to avoid accidents and infractions.
  • Credit history – If you haven’t paid past bills, you may want to start to improve your credit history and show a willingness to improve.
  • Vehicle optimization – To make sure that you’re getting the best rates, choose a vehicle with strong safety ratings.

Any way you can lower your risk level should lower your rates as well.

What other coverages does USAA offer for cars?

USAA offers a variety of car insurance policies to its client base. As a qualified insurer, USAA offers many of the standard policies, including:

  • Comprehensive – This coverage will take care of any damages to your vehicle not related to an accident once you pay the deductible.
  • Collision – Helps pay for any damages that happen to your vehicle as a result of an accident, regardless of fault.
  • Liability – Pays for other drivers’ damages after an accident you cause.
  • Uninsured/underinsured – This coverage pays for your damages after an accident with someone who is not insured or does not have enough insurance to cover the costs.

These policies can help cover most needs that will arise out on the road or when your vehicle is parked.

USAA Discounts Available

In addition to the lower rates USAA provides to those who have served their country, there are many discounts available. If you qualify, some of these discounts include:

  • Good student discount for teen drivers
  • Clean driving record discount
  • Garaging car on military installation discount

With these savings, military members and their families can drive safely on the road while also knowing that they won’t have to pay an arm and a leg for car insurance coverage. 

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USAA and GAP Coverage: The Bottom Line

While USAA might not offer GAP coverage, it does offer a variety of options to help you get affordable insurance rates. There are many insurers, as well as dealerships, that offer GAP coverage plans to ensure that you’re not left paying off a loan for a car you no longer have.

If you’re looking for quotes for USAA GAP insurance, enter your ZIP code into our free quote tool to see what you could pay with other insurers who offer it.

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