GEICO and Other Insurance Providers- GAP Coverage?

[Jim Holder]

Hi All,

In researching the most reasonable carriers for insurance for a new 2017 Tesla Model S in New York State, it came down (for me) to Geico and Ameriprise/Costco. Both come in about $1,500/year with max coverges (300/300/100) and $500ded.

However, it seems when it comes to a totaled claim (God forbid), Geico will not rate the car at the purchase price but some fuzzy numbers south of the actual purchase price, potentially leaving new buyers with early unfortunate events on the hook for tens of thousands of dollars if they need to replace the car (or even just to make their financing company whole).

I asked Geico if they offer gap insurance, and they said no.

I asked if they offer any other type of replacement/agreed value insurance, and they said no.

I've read that Ameriprise/Costco offers gap insurance for just a few dollars more a year (haven't asked directly yet, their offices are closed for the day).

My question for those with experience in this area, if the premium for Geico or Ameriprise/Costco are comparable, is there a clear preference for one company over the other?

Is the gap issue not an issue in New York state regardless of the company?

BTW it seems from reading the forums that (some) Tesla owners have also been having to fight with Geico for genuine repairs at a Tesla facility, etc..

And there are many Ameriprise horror stories regarding having them pay decently on any claims as well -- just search Google.

(PS all other carriers such as Allstate, liberty mutual, progressive, esurance, have all come in astronomically high (for me) sometimes as much as 200% higher -- must be a NY thing.)

So based on all you collective experience, which company is preferred for least hassle experience claim-wise, Geico or Ameriprise/Costco?

Thanks in advance.

PS Does having an umbrella (like $1M) with the same company make any difference to the gap issue?

 

[DarkMatter]

Umbrellas are liability, not property protection. They won't help you at all. (I can't help otherwise, I have USAA who does offer Gap.)

 

[Jim Holder]

Umbrellas are liability, not property protection. They won't help you at all. (I can't help otherwise, I have USAA who does offer Gap.)

Thanks.

Perhaps that's what they're hinting at in England when they say "Mind the Gap!"

 

[RichardD]

I picked up GAP insurance through my lender. It was $399 and would pay my deductible if I had to use it. Seemed like a no brainer. Even with the CPO I bought I don't want to be caught in a negative position.

 

[Jim Holder]

I picked up GAP insurance through my lender. It was $399 and would pay my deductible if I had to use it. Seemed like a no brainer. Even with the CPO I bought I don't want to be caught in a negative position.

Thanks! Can you share the lenders name?
Is this something most lenders offer, for example TD Bank?

 

[RichardD]

I used Texans Credit Union. And yes most lenders offer it, but it is usually a negotiable amount, so atleast ask if they can discount it. Some will offer the lowest price upfront (credit unions) but alot of banks add a mark up in my experience.

 

[Super_Popular]

I had Geico with my first Model S. The first week I had it someone went through my parking lot and hit every car with a hammer multiple times. It's a $3K to fix 3 dents. It was a battle to get Geico to pay the higher hourly shop rate for the painting. So I had to take the car to another non certified Tesla shop. I dropped Geico and went with Nationwide. Nationwide is also the only company that did not charge a huge premium amount.

 

[Zextraterrestrial]

I have geico but I know they were a pain in the ass to deal with when someone else hit me that had Geico. really hard to get them to completely fix the damage

 

[Jim Holder]

I have geico but I know they were a pain in the ass to deal with when someone else hit me that had Geico. really hard to get them to completely fix the damage

I took the advice of fellow members here and called around a few Tesla authorized body shops in my area to hear from the other side which company is the fairest to deal with, all of them said if the choice came to between GEICO or Ameriprise/Costco to stay far away from Ameriprise at any cost because they try to find any excuse not to pay out on a claim.

And although Geico might be belligerent in allowing the work to be done properly at the start, trying to save themselves $$, with persistence they relent.

Also, one said if it is an Ameriprise claim he turns them away from the get go because the pain and stress is not even worth it.

So between the two, Geico is the no-brainer preferred.

Good to know!

The best ones of the high-end (read: expensive) companies were Chubb and Travelers.

BTW Allstate surprisingly was rated down there with Ameriprise.

This is of course all anecdotal information and by far not scientific, but certainly educational and pretty authoritative given it is real bottom line real-life reports.

 

[Sir Guacamolaf]

my 2c - I also added "underinsured motorist". State minimums do not cover the price of fixing or replacing a Tesla.
I'd also suggest adding rental given that you have to wait for months to get parts, you may be without wheels for that duration.

 

[Rockster]

As a Tesla owner who has dealt with Geico-funded Tesla repairs I suggest you run screaming from Geico. I switched to a different insurance company because Geico was so horrid to deal with (and I was not at fault).

As for GAP coverage, I think it's a reasonable price for peace of mind with a luxury car that depreciates quickly at the front end of ownership.

 

[RichardD]

My recent experience. I have State Farm and was hit by a USAA motorist, not in my Tesla. They were great to deal with, he would not have had enough insurance to pay on my Tesla, so I made sure I have under insured motorist.
Just a side note.. Don't forget to pursue a diminished value claim if your Tesla is ever in an accident. B/C when you sell or trade it in, they will ding you for the incident.

 

[TexLaw]

I had a professor who used to say "the business of insurance companies is to collect premiums and never pay claims." The only company I've ever seen or heard of that might be considered an exception to that is USAA. The rest are, pretty much, PITAs.

 

[Max*]

Geico does not offer GAP insurance, I got GAP through my lender (credit union). Don't remember how much it was, but it's for the life of the loan.

If you google Tesla and Geico or Tesla and Progressive or Tesla and anyone else, and you'll see that there are complaints with each company. There might be more with Geico though, not sure.

I was rear ended a while back (non-Tesla) and the owner had Geico insurance, they were REALLY easy to deal with and they paid everything without batting an eye. Coupling that experience with their cheap rates, I now also have Geico. YMMV.

 

[No ICE]

Usaa is fantastic. If anyone in your family has served in the military you may be eligible to use their services. I suggest you look into them for all your coverage needs.

 

[Sir Guacamolaf]

Usaa is fantastic. If anyone in your family has served in the military you may be eligible to use their services. I suggest you look into them for all your coverage needs.

I don't know why everyone raves about USAA. In my last car, the other driver (USAA) cut me on a straight line, and I hit her. Her fault. She was the wife of a military officer. I have a lot of respect for people in the military but damn what a bitch she was. First, she tried to blame me for hurting her kid in the rear seat (kid was fine). Then she blames me for manhandling her (which I didn't even touch her, and was polite all the time). Then she tries to grab my phone out of my hand. Then she refuses to return my insurance information.

Finally, she lies about all this to her insurance company (USAA). USAA goes by her story, and thankfully, I had a camera in my car, and my phone all the time, recording every single thing. I mention this to USAA, and was willing to share the whole footage with them - but they wouldn't accept it.

Their excuse, "It must come from a verified email". BS! Thankfully, (they didn't know), I am in the defense forces too, and well I had about as verified of an email as it can get. But they still wouldn't accept it. I asked them "what they mean by a verified email address", and they wouldn't tell me.

Finally, I sued USAA. 6 weeks later, they offered out of court settlement, everything taken care of. I withdrew the case. The total damage on the car was $700ish, but the legal fees etc. they pay out was just under $3K, and the hassle, was "priceless".

But from my point of view, USAA not only abetted a lie, they actively worked against the facts and a reasonable cause.

Moral of the story: All insurance companies suck. Including USAA.

 

[Max*]

I don't know why everyone raves about USAA. In my last car, the other driver (USAA) cut me on a straight line, and I hit her. Her fault. She was the wife of a military officer. I have a lot of respect for people in the military but damn what a bitch she was. First, she tried to blame me for hurting her kid in the rear seat (kid was fine). Then she blames me for manhandling her (which I didn't even touch her, and was polite all the time). Then she tries to grab my phone out of my hand. Then she refuses to return my insurance information.

Finally, she lies about all this to her insurance company (USAA). USAA goes by her story, and thankfully, I had a camera in my car, and my phone all the time, recording every single thing. I mention this to USAA, and was willing to share the whole footage with them - but they wouldn't accept it.

Their excuse, "It must come from a verified email". BS! Thankfully, (they didn't know), I am in the defense forces too, and well I had about as verified of an email as it can get. But they still wouldn't accept it. I asked them "what they mean by a verified email address", and they wouldn't tell me.

Finally, I sued USAA. 6 weeks later, they offered out of court settlement, everything taken care of. I withdrew the case. The total damage on the car was $700ish, but the legal fees etc. they pay out was just under $3K, and the hassle, was "priceless".

But from my point of view, USAA not only abetted a lie, they actively worked against the facts and a reasonable cause.

Moral of the story: All insurance companies suck. Including USAA.

To be fair, they were great for the person who hit you! They were on her side the whole time

 

[RayW]

Try Mercury if available in your state. In CA we pay $1,800/yr for 250/500/forget w/$1,000 ded, gap insurance is about $12/year. I'm not sure if they have the best rates but do know they are not the worst.

My wife is an insurance attorney (don't judge) and knows how Geico operates if you do get in an accident -- stay away from them.