Safeco's Gap Insurance: What You Need To Know

Safeco offers a wide range of auto insurance coverage options, including accident forgiveness, claims-free cash back, and a diminishing deductible. However, it is important to note that Safeco does not offer gap insurance. Gap insurance is a type of specialty coverage that pays the difference between the actual cash value of a car and the loan or lease balance if the vehicle is stolen or totaled. While Safeco does not provide this type of insurance, customers can find affordable gap policies from other major insurance companies, dealerships, or standalone providers.

Safeco does not offer gap insurance

If you’re an existing Safeco customer and want to maintain your policy, you could purchase gap insurance from a dealership or a stand-alone company. However, dealership gap insurance is often the most expensive option, as it’s usually rolled into your loan and charged interest.

Safeco does offer a range of other auto insurance coverage options, including accident forgiveness, claims-free cash back, and a diminishing deductible. The company also provides 24/7 claim services and has received high ratings for its service and affordable coverage.

To find out if you have gap insurance, check your existing car insurance policy and the terms of your loan or lease. Gap insurance can be obtained through your insurance company as an add-on or separately through your auto lender.

Gap insurance is a specialty type of coverage

Gap insurance is designed to protect you from depreciation, which occurs as soon as you buy your car and its value starts to decrease. If your car is totaled or stolen, gap insurance will pay off your loan, protecting you from having to pay the difference between the value of your car and the amount you owe. This coverage is especially useful if there is a significant difference between your car's value and what you owe on it, if you've made a smaller down payment, or if you have a longer financing term.

When purchasing gap insurance, you can choose to buy it through your auto insurer or from a dealership or lender. However, it is generally recommended to buy gap coverage through your auto insurer rather than from a dealership to avoid paying interest on it. Additionally, some lenders or leasing companies may require you to purchase gap insurance, while others may automatically add it to your loan.

While Safeco does not offer gap insurance, you can find affordable gap policies from many other major insurance companies. If you're a Safeco customer and want to maintain your policy, you can purchase gap insurance separately or through a dealership.

Safeco offers accident forgiveness

Safeco has been in the property and casualty insurance business since 1923 and has thousands of satisfied customers. The company offers 24/7 claim services and affordable coverage.

In addition to accident forgiveness, Safeco offers several other unique features. The emergency assistance package, for example, pays for roadside assistance, as well as emergency expenses for meals and lodging. It also includes personal property coverage for items damaged or stolen from your car.

Safeco also offers a better car replacement coverage, which pays out the actual cash value of a car one model year newer than your totaled car. If you are a driver for a ridesharing company, Safeco offers rideshare and delivery network coverage to keep you covered while you wait for a ride or delivery request.

Safeco's customer satisfaction ratings are low

In addition, Safeco's home insurance offerings have received similarly low customer satisfaction ratings. In the 2024 J.D. Power U.S. Property Claims Satisfaction Study, Safeco scored below average for claims satisfaction, with only two home insurers receiving lower scores. The NAIC's 2023 complaint index score for Safeco's home insurance was 1.64, a significant increase from the previous year's score of 0.75, suggesting that the company is receiving more customer complaints than expected for its size.

Despite these low customer satisfaction ratings, Safeco has been praised for its robust coverage options and competitive rates. The company offers a wide range of add-ons and discounts for both auto and home insurance, and its financial strength ratings indicate that it has the ability to pay out claims. However, the low customer satisfaction ratings suggest that customers may experience issues with claims handling and customer service.

Safeco offers a multitude of optional coverage types

Safeco offers a wide range of optional coverage types that can be tailored to meet your specific needs and budget. Their auto insurance policies are highly customizable, with various features and add-ons available.

For instance, Safeco's emergency assistance package provides roadside assistance and covers emergency expenses for meals and lodging, as well as personal property coverage for items damaged or stolen from your vehicle. This level of coverage is not commonly offered by other auto insurance companies.

Additionally, Safeco offers better car replacement coverage, which pays out the actual cash value of a car that is one model year newer than your totaled car. This is a unique feature that sets Safeco apart from its competitors.

If you are a driver for ridesharing or delivery services like Uber or Lyft, Safeco has you covered there, too. Their rideshare and delivery network coverage fills the gap between your personal policy and the ridesharing company's limited insurance, ensuring you are protected while waiting for ride or delivery requests.

Other optional coverage types available from Safeco include new car replacement, rental car reimbursement, original parts replacement, personal property coverage, gap coverage, electronic key and lock replacement, custom equipment coverage, and pet coverage.

With so many options to choose from, you can rest assured that Safeco has the coverage you need to protect yourself and your vehicle.

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