Do You Need Toyota GAP Insurance?
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UPDATED: May 25, 2021
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You find the brand new Toyota of your dreams and now it’s time to think about financing it. Of course beyond just securing the financing you have to think about other things. Part of this is insuring the car. On a financed car, you will probably be looking at getting Toyota GAP insurance as well. The reason it is important to realize this is too many drivers get themselves into a new car without knowing how expensive the auto insurance coverage might be.
On a brand new car if you aren’t careful and realistic about your driving history, you could be paying auto coverage and Toyota GAP insurance coverage prices that are as much as your car payment each month. Be smart and know the basics about this coverage. Being informed will help prevent you from paying too much for car insurance.
What It is Exactly
Before you learn about how you may need Toyota GAP insurance for your new car, you should first know a little about what this coverage is.
- GAP insurance actually stands for Guaranteed Auto Protection, although many drivers think it means it is the policy that fills in the gaps where other insurance policies fall short.
- When you drive a car off the lot, if the amount you actually owe on it is greater than the value of the car you probably need Toyota GAP insurance. Don’t be surprised as this is quite common with financed vehicles.
- There are often other circumstances that may cause the value versus the amount owed to differ greatly. You should be aware of what these could be so you can determine if you need GAP car insurance coverage.
Other Cases in Which You May Need GAP
GAP auto protection can help you have total protection. The main point of having Toyota GAP insurance is that if you have a financed car that is valued at less than your loan amount and you total the car out there will still be a remaining balance owed on the car. This is also true if your new financed car is stolen. While a standard auto insurance policy will cover the value of the car, you will still owe the remaining balance. GAP insurance is what covers this.
Other reasons you may need GAP car insurance coverage could include but are not limited to:
- If your trade-in is of no value or if you still owe on your trade in and are combining two loan amounts.
- If you have no trade in and little or no down payment.
- If you will be driving the car a great number of miles per year, meaning the car will depreciate quickly.
The best way to make sure you are totally protected is to get the total car insurance coverage you need. If you are ready to get quotes it is as easy as supplying just your zip code to get started. From there you will have access to competitive Toyota GAP insurance rates you can choose from.