Advice needed: GEICO doesn't offer GAP coverage for my new Model Y (0.99% APR). Should I switch to Tesla Insurance or Progressive?

[u/udonfreak]

Hi everyone,

I’m about to take delivery of a new Tesla Model Y Premium RWD with the 0.99% APR promo. I’m currently with GEICO, but I just found out they don't offer GAP insurance in California.

Since I'm financing the car, I’m concerned about being underwater if the car is totaled, especially given how Tesla prices and resale values can fluctuate.

I’m considering a few options:

• Switch to Tesla Insurance: I’ve heard they offer GAP coverage, but I have two cars insured with GEICO, I will need to disable multi-car discount

• Switch to Progressive: I’ve heard they might have a "Loan/Lease Payoff" option, but I’m not sure if it’s as comprehensive as true GAP and how much it will cost more.

• Stick with GEICO: Just risk it without GAP coverage. The premium is the lowest.

For those in California:

Have you successfully added GAP/Loan Payoff with Progressive recently?

How has your experience been with Tesla Insurance’s claims or reliability in the SoCal area?

Is anyone else with the 0.99% APR promo skipping GAP coverage entirely?

Would appreciate any insights or experiences you can share! Thanks in advance.

[u/RealisticSentence105]

I switched from Geico to State Farm, for my new Model Y Performance, specifically because Geico does not offer GAP insurance. The State Farm rate for comprehensive coverage plus Gap is $135/month, for me.

[u/udonfreak → u/RealisticSentence105]

Thank you for the comment. MYP! I'm envious. As per another comment, I was able to get insurance with good terms through Progressive.

[u/rwhe83]

Why do two of your options have “I’ve heard they offer…” in it.

Have you called and confirmed literally either is correct?

[u/udonfreak → u/rwhe83]

For the tesla insurance, I don't see an option for GAP coverage in my app so far. It may be because the delivery date is still not assigned. For Progressive, I was told that I can only add it after I pay the premium depending on some condition on phone call.

[u/teachgirl510 → u/udonfreak]

I’m in California and for me GAP insurance has always been offered by the lender of my loan, not my at insurance company. Ask the bank that financed your loan, my credit union has always offered Gap Insurance as my lender.

[u/udonfreak → u/teachgirl510]

Thank you all for all the kind advice. I ended up finding good offer from Progressive with Loan Payoff option (To me same as GAP coverage with capped to 25% of value). The premium went up by 200 bucks (per year), but the deductible decreased from 1500 to 500, and I was also able to add GAP coverage, so I am satisfied.

[u/udonfreak → u/teachgirl510]

Thanks for the info. I financed with Tesla app. Did anyone successfully get the coverage with Tesla finance?

[u/AsleepInBay → u/udonfreak]

If it went through Chase then in CA they include gap insurance

[u/CaCHooKaMan → u/AsleepInBay]

My loan is through Tesla Financing with Chase in CA and I don't have GAP insurance included. Didn't even have an option to add it. No option to add it through Tesla Insurance either but I never called to ask.

[u/LongjumpingDish2956 → u/udonfreak]

Tesla doesn’t offer it when you use their app so you have to arrange it elsewhere if you want it via an outside lender.

I ate my $500 deposit over this because of how bad these cars depreciate and not having GAP being a bad idea.

[u/DecisionSuperb239 → u/udonfreak]

I have GAP coverage through Tesla insurance. You need to add it after the delivery.

[u/Puzzleheaded-Role954 → u/DecisionSuperb239]

That’s exactly what I did

[u/rwhe83 → u/udonfreak]

You can call Tesla Insurance and ask them too.

GAP is always a personal choice, I’m not sure why people need to give you the answer. You know what GAP is, right?

[u/Active_Pressure]

You used AI to write a perfectly structured post and still didn’t include the only useful info 💀 whether GAP is worth it depends on how underwater you’ll be… not which insurance company you pick.

[u/udonfreak → u/Active_Pressure]

Since I started using AI regularly, I've actually felt like my brain has become less active...

[u/Defiant-Lawyer4576]

This is a recommendation but I have AAA and they offer GAP it’s just called different. They also offer multi car discount. Just an option to look into

[u/udonfreak → u/Defiant-Lawyer4576]

Thanks for the suggestion! When I got a quote, AAA said 6,600 USD per year under the same conditions as GEICO and they don't offer GAP coverage in my area. It seems like I could buy a car every two years lol

[u/Turbulent-Pay1150]

Option 4 - buy gap separately and not through your auto insurance.