Paul Sanchez
Infinity Insurance offers gap insurance as an optional add-on to your auto insurance policy. Gap insurance covers the difference between the actual cash value of your car and the amount you owe on your loan or lease if your car is totaled or stolen. This can be a substantial difference, and without gap insurance, you may be left with a bill to pay to your lienholder. Infinity Insurance is rated below average overall, but it does offer a complete line of insurance products and has proven its stability, reputation, and affordability.
| Characteristics | Values |
|---|---|
| Does Infinity offer gap insurance? | Yes |
| Is it a mandatory add-on? | No, it's an optional add-on |
| What does Infinity gap insurance cover? | The difference between a totaled car's actual cash value and the remaining loan or lease balance |
| Who needs gap insurance? | Anyone at risk of negative equity on their vehicle |
| When do you not need gap insurance? | When your car loan balance is less than the vehicle's actual cash value |
| Where can you buy gap insurance? | Auto loan company, auto insurer, or as a stand-alone policy |
| How much does gap insurance cost? | Depends on where you buy it; auto loan company: $500-$700; auto insurer: $20/year; stand-alone policy: $200-$300 |
What You'll Learn
Infinity offers gap insurance as an optional add-on
The cost of Infinity's gap insurance depends on factors like your state and your vehicle's value. It is generally cheaper to purchase gap insurance from an insurance company than from a dealership, where the cost is often rolled into your loan or lease and charged interest. You can also cancel your Infinity gap insurance once your car is worth more than your loan or lease balance.
Infinity recommends that drivers at least get comprehensive and collision coverage insurance, and that they add gap insurance if possible.
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It covers the difference between the ACV and the loan amount
When you buy a new car, it starts to depreciate in value as soon as it leaves the car dealership. This means that the amount of the loan may exceed the market value of the vehicle itself. This is where Guaranteed Asset Protection (GAP) insurance comes in.
GAP insurance is an optional product that covers the difference between the amount you owe on your auto loan and the amount your insurance company pays if your car is stolen or totaled. Infinity Insurance recommends that drivers add GAP insurance to their policy. This is because, if you don't have it, your insurance company will pay the actual cash value (ACV) of your car right before the damage minus the deductible for the collision. This can leave you with a bill to pay to your lienholder. However, with GAP insurance, your company will cover the remainder of the loan if the car is totaled.
The cost of GAP insurance varies. Your car dealer may offer it to you when you purchase your vehicle, but it will likely be cheaper if you get it from your auto insurance company. If you have Infinity Insurance, you can call 1-800-INFINITY to discuss your options.
It's important to note that GAP insurance is not required by all lienholders. Before signing any paperwork, be sure to discuss all required coverages with your lienholder.
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It is usually cheaper to buy from an insurance company than a dealership
Infinity does offer gap insurance as an optional add-on to your policy. This covers the difference between the actual cash value of your car and the remaining loan or lease balance if your car is written off. This is particularly useful if your car is a total loss, as without gap insurance, your insurance company will only pay the actual cash value of the car, which may not cover the remaining loan amount.
It is usually cheaper to buy gap insurance from an insurance company than a dealership. This is because dealerships often charge higher rates for insurance, which are then rolled into your loan or lease and charged interest. Insurance companies, on the other hand, offer early shopper discounts, which can be as high as 10% if you get a quote seven or more days in advance of your policy starting. This can save you a significant amount of money, and you can lock in your discount before you've even decided on a car.
Additionally, insurance companies only charge you once you pick up the car, so there's no payment for the time between buying insurance and taking ownership of the vehicle. You can also cancel your policy at any time, or wait until the renewal date to switch, which is useful if you find a cheaper policy elsewhere.
It is worth noting that not all insurance companies offer gap insurance, so it is important to shop around and compare quotes from multiple providers. However, given the potential for significant savings, it is generally advisable to opt for an insurance company over a dealership when purchasing gap insurance.
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Infinity has poor customer service ratings
Infinity Insurance has received poor customer service ratings from its clients. The company has a rating of 1.9 stars out of 5 on WalletHub, with WalletHub users and other reviewers citing issues with the company's customer service, high premiums, and poor claims handling.
One reviewer on WalletHub described Infinity Insurance as the "worst ever insurance company", citing issues with the company's adjuster and delays in processing their claim. Another reviewer on the same platform mentioned that they had to wait for over a month to receive a response from their adjuster, despite multiple attempts at contact.
Trustpilot reviews for Infinity Insurance are similarly negative, with an overall rating of 1.4 out of 5 stars. One reviewer mentioned that they had been waiting for over a month for a response from their adjuster, while another reviewer stated that the company's customer service was "substandard" and that it was "impossible" to cancel a policy without incurring additional fees.
The company's customer service has also been described as "terrible" and "the worst", with reviewers citing issues such as a lack of responsiveness from adjusters and representatives, as well as difficulties in reaching the company by phone.
In addition to the poor customer service ratings, Infinity Insurance has also been criticized for its high premiums. WalletHub's editors noted that Infinity Insurance's premiums are higher than most competitors' rates, which contributed to its below-average rating on their platform.
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Gap insurance is only necessary if you have a loan on your vehicle
Yes, Infinity offers gap insurance as an optional add-on to your policy. Gap insurance is only necessary if you have a loan on your vehicle.
Gap insurance is a type of coverage that is particularly useful for newer cars. It covers the difference between the actual cash value (ACV) of your car and the amount you owe on your loan. This is important because, as soon as you drive a new car off the lot, its value starts to depreciate. This means that if your new car is totaled within the first few years, you could owe the bank more than what your car is worth.
For example, if you have a $30,000 car loan on a $22,000 car, you may not be able to afford to pay the $8,000 gap. In this case, gap insurance would be a good idea. On the other hand, if your car is worth $10,000 and you owe $12,000 on the loan, you might be willing to absorb the difference of $2,000 if your car is totaled.
If you don't have gap insurance and your car is totaled, you will need to speak with your lender to reach an agreement regarding your loan.
You can get gap insurance from most major car insurance companies, auto lenders, or dealerships. However, it is usually more expensive to purchase gap insurance from a dealership as the cost is often rolled into your loan with interest.
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Frequently asked questions
Yes, Infinity offers gap insurance as an optional add-on to your policy.
Infinity's gap insurance covers the difference between a totaled car's actual cash value and your remaining loan or lease balance. However, you will be responsible for paying a deductible.
The cost of Infinity's gap insurance depends on factors such as your state and the value of your vehicle.
Purchasing gap insurance from an insurance company like Infinity is usually a better investment than buying it from a dealership. At a dealership, the cost is often rolled into your loan or lease and charged interest.
You should drop Infinity's gap insurance when your car loan balance is less than the vehicle's actual cash value. At this point, the insurance settlement after a total loss will likely cover your remaining loan amount.
