3 Low Rate Tips for Toyota Corolla Gap Insurance

January 27, 2012

When you have a no- or low-money down loan on a Toyota Corollagap insurance is a valuable policy to consider. In the unfortunate event your new Corolla is totaled in an accident, you may owe your lender much more than the fair market value of the vehicle that the insurance company will pay. In this situation gap insurance provides an important safeguard. For example, if you owe $15,000 on your Corolla and it is totaled, the insurance company may agree to pay you $13,000 for the total loss of the vehicle. You would normally be responsible for paying this $2,000 difference on your own. However, with gap insurance, this difference is covered by the policy, and the best gap insurance policies will also cover your collision deductible.

  1. Online Gap Insurance Providers Offer Low Rates: While new government standards have reduced the number of online gap insurance providers, you still have some good choices for some of the cheapest gap insurance out there. National Gap Insurance offers gap insurance for just $349. This insurance covers vehicles up to eight years old as long as they are financed for a term of less than 72 months. Any interest less than 12.5% APR included in your loan balance will be paid. National Gap Insurance also offers for $399 a policy with the same coverage over an extended, 84 month term. You can also find gap insurance for as low as $299 per month at gap-insurance.com. Just be sure to confirm that the coverage fits your needs and the term of your loan.
  2. Avoid Dealership Gap Insurance: Gap insurance is not required for a dealership to sell a car. The finance and insurance manager may illegally inform you that purchasing gap insurance is mandatory to finance your vehicle, especially if you have some blemishes on your credit history. Policies like gap insurance are large profit centers for new and used car dealerships, so never take the dealership's first offer. If, after some negotiating, the dealership offers gap insurance for under $400, consider it. Just remember that the dealer likely purchased the policy from the JM&A Group for between $500 and $1,000.
  3. Ask your Insurance Agent: Unknown to many, traditional auto insurance firms offer gap endorsements for current policyholders. In this case, your gap coverage is simply added as a line item on your current policy. Not all insurance companies offer this endorsement, but it is best to check with your State FarmProgressive or GEICO agent to see if they can save you any additional money by adding an endorsement.

By using these three tips, you can drive your Corolla knowing that you will be well-protected in the event of an accident that totals your vehicle. Remember that gap insurance is not necessary to finance a vehicle. In the rare event that it is required, as in the case of Toyota Financial lease gap insurance, the cost of the gap insurance policy will be included in the lease.