If you are buying a new car, make sure you learn about gap insurance and GET IT! If you don't, your "full coverage" auto insurance through usaa doesn't actually fully cover cost of your car. They only pay you actual cost value, minus any fees they feel like subtracting, leaving you with thousands of dollars left to pay out of pocket, even when you aren't at fault for the accident.


New cars lose value as soon as they are driven off the lot.   In some cases this will result in the loan amount being greater than the vehicle is worth.  GAP will help cover the difference in case of a total covered loss.  GAP insurance is not cheap (especially if rolled into the loan), but for some people the piece of mind out weighs the cost.   Some folks are willing to accept the risk and basically self insure to save the cost of the insurance.


If you put down 20% or more (cash or trade) on the vehicle, chances are you will not have a loan greater than the value and therefore, won't have a need for the insurance.  Do the math and decide for yourself.

Thank DSTexas, but I have learned all of that way too late. Neither my car dealer, lender, nor usaa told me anything about gap insurance. If I had known anything about it I certainly would have paid for it. A simple suggestion to USAA would be for them to add a disclaimer to their auto insurance section so that when people are setting up the policy for their shiny new car they know USAA will only cover actual cost value, and they learn about gap insurance and the fact that they only have 30 days after purchase to go get it. None of us can make educated choices about things we don't know even exist.

If folks would actually take time to read  and understand their policy, they would learn a lot. 


It is on you to do the research to determine the amount of coverage required to meet your needs.


I'm sorry if it sounds harsh, but this mentality that folks needing  to be hand fed every bit of information, rather than doing their own due diligence is getting real old.  I guess it is just to easy to point the finger at the other guy and say "he should have told me"!

I think you misunderstood my tone in my suggestion on providing more information. It was in no way pointing blame at USAA. I'm not asking anyone to hand feed me anything, and I haven't argued back against my claim adjuster once about what I owe because I accept responsibility for not knowing this information sooner. USAA is just usually on point with all of their services and my only suggestion was asking if they could include more up front information about gap insurance so more people know what it is and how important it is for those buying new cars. Only 2 out of 10 people i have asked so far have ever even heard of it. Since USAA is the only one of the three organizations I trust to do something constructive with this feedback, I posted here. Frustrated tone in the beginning? Of course, I was upset with the situation, but never said they were to blame.

Now that I have seen your username trolling and posting on every single other comment in this community thread, I'm guessing you either work for USAA or dont' have a life. Either way, you've effectively turned me off from this forum.

Actually your subject set the tone! :)

You will not see an employee comment on the board (coming from an ex-employee and long time member). Employees cannot advise you on things they do not know. They are not going to tell you to make sure you financed your vehicle correctly unless you specifically ask. Frustration is warranty but so is responsibility.

After asking Google about gap coverage for the negative equity that was exposed after my stepdads total loss ax. Most of the search hits were disgusted USAA members.
My Mom and stepdad are certain they had been told part of their monthly premium included gap protection Since they asked for my assistance to help with this misrepresentation I must say, “ you get what you pay for”. USAA total loss can be when estimated cost to repair exceeds 60% of fair market value, or whatever the amount is shown in their preferred auto-body repair estimate software USAA uses. The inflated superfluous repair estimate is relieving USAA of the small loan on my stepdads truck that they hold while putting my 76 yr old Marine Corp Vietnam Vet Stepfather in a unnecessary bind. I did an inspection of the vehicle and repair estimate which revealed over $ 2000 of parts/ labor for repairs on undamaged rocker panel.
This is unfortunate and appalling treatment of another member of our armed forces. Instead of USAA treating vets with due respect, their entire niche is based on deception and USAA is actually taking advantage of the fellow Americans that deserve so much more.
Sincerely Revolted

@ Duped & Gunshy,

This is never the experience we want anyone to have when they file a total loss claim.  Can you please have your parents reach out to us, so we can escalate their situation further?  Thank you~Mike

@DSTEXAS You're not harsh, but the length of these policies and wording are vague and ambiguous. I spent 2 hours on the phone with USAA going line by line and there were ambiguous things in there the USAA rep couldn't explain. Don't act as if they are simple documents. You're definitely unreasonable in you "people need to sit down and read" claim. That's a farce. I'd love to sit with you and read some excerpts from my policy that I don't understand and and the USAA rep couldn't explain. Let's see how you do explaining them. 

sorry if I sound like I'm attacking you, but I am. You're and idiot. Quit taking the side of a company with and F rating by the BBB and hundreds of lawsuits. A company that refused to cover veterans that were victims in hurricanes. You're an absolute joke.