Dropping Gap Insurance: Toyota's Process

If you want to drop your GAP insurance from Toyota, you can do so at any time. GAP insurance covers the difference between what you owe on your car and what the insurance company will pay out if it is a total loss. You can request a refund from the dealership if you have already bought coverage from them, but make sure you have an active policy in place before cancelling your current policy. To cancel your GAP insurance, contact the company providing coverage, such as the dealership where you bought your car or your insurer. If you have coverage through your insurance company, you can typically call or go online to remove GAP coverage from your policy. If you have paid for your GAP insurance upfront, you may receive a refund when you cancel your policy.

Cancelling GAP insurance from a dealership

GAP insurance is an extension of your auto insurance that covers the difference between the actual cash value of your car and what you owe on a loan. If you've purchased GAP insurance and now think you no longer need it, you can cancel your policy. Here is a step-by-step guide on how to cancel GAP insurance from a dealership:

• Check your contract: Review your GAP insurance contract to check for any cancellation restrictions or deadlines for requesting a refund. Your contract should also include the name of the insurance provider the dealership works with. If you cannot find your contract, contact the dealership directly.
• Gather your information: Before initiating the cancellation, gather all the necessary information and documents. This includes your policy details, loan or lease documents, and, if applicable, your new GAP insurance policy information.
• Contact the dealership or their insurance provider: Get in touch with the dealership or the insurance company they work with to inquire about the steps for cancelling your GAP insurance policy. They may require you to fill out a GAP insurance cancellation form and provide other relevant documents. Ask about any cancellation fees that may apply.
• Make any necessary payments: Ensure that you have made all overdue payments, including any interest that may have accrued until your cancellation date.
• Understand the refund process: If you are cancelling within the specified refund period, you may be eligible for a full or prorated refund based on the time remaining on your policy. Contact the dealership or insurance provider to understand their specific refund policies and procedures.
• Follow up: If the cancellation process takes longer than expected, follow up with the dealership or insurance company to ensure that your request is being processed and to get an estimate of when you can expect to receive your refund.

Remember that the specific process and requirements may vary depending on your dealership and insurance provider, so it is essential to review your contract and contact them directly for detailed instructions.

Getting a refund for GAP insurance

You can get a refund on your GAP insurance if you paid upfront for your coverage and cancel the policy early. Refunds are most commonly issued when you pay off your loan early, sell your car, or trade it in.

You can also get a refund if you switch to a different insurance company, but this may be a full or partial refund, depending on the timing. If you cancel within 30 days of the policy start date, you can usually get a full refund (minus any fees). If you cancel after 30 days, your refund will be prorated.

You won't get a refund if your policy has expired or if your car is declared a total loss and your insurance company has paid out.

The amount of your refund will depend on how you pay your insurance bill. If you pay monthly, you won't get a refund, as you've only paid for the coverage you've received so far. If you pay a lump sum, your refund will depend on how far into your coverage you are when you cancel.

The refund will be a prorated amount based on what you paid upfront and how much time is left on the policy. The specific amount may also depend on the loan amount, mileage, and value of the vehicle.

How to get a refund

To get a refund, contact your insurance provider and ask to cancel your GAP insurance and request a refund for the remaining coverage. You'll need to provide documentation, such as proof of sale or auto payoff letter. Some insurance companies may also require odometer verification to show the car's mileage.

Your insurance provider will give you the necessary forms to fill out and let you know what other information is required. It typically takes between four and six weeks to receive your refund.

When to cancel GAP insurance

GAP insurance is an optional form of coverage that can be added to your auto insurance policy. It covers the difference between the actual cash value of your car and the amount you still owe on your loan in the event of a total loss. This can be especially useful for newer vehicles, which depreciate quickly in value.

You can cancel GAP insurance at any time, but there are certain instances when it makes more sense to do so. Here are some scenarios in which you may want to consider cancelling your GAP insurance:

Your loan amount drops below the car's value

If you've been making regular payments on your car loan, your loan amount will eventually drop below the car's value. This usually happens after about two years of payments. At this point, you may no longer need GAP insurance, as the payout from your standard collision or comprehensive coverage would be sufficient to cover the remaining loan amount in the event of a total loss.

You pay off your loan early

If you pay off your car loan early, you may no longer need GAP insurance. Without a loan, there is no gap between the value of the car and the amount owed, so GAP insurance becomes unnecessary.

You trade or sell the vehicle

If you decide to trade in your vehicle for a new one or sell it outright, you will no longer need GAP insurance on that particular vehicle. It's important to note that you should wait to cancel the GAP insurance until after the sale or trade is complete to ensure there are no gaps in coverage.

You no longer feel GAP insurance is necessary for your vehicle

Over time, your vehicle's value will depreciate, and you may reach a point where you feel that the benefits of GAP insurance no longer outweigh the cost. This could be due to a variety of factors, such as a decrease in your car's value, a change in your financial situation, or a simple reevaluation of your coverage needs.

You want to switch GAP insurance providers

If you find a better deal on GAP insurance or are unhappy with your current provider, you may want to switch to a different company. In this case, it's important to have a new policy in place before cancelling your existing coverage to ensure there are no gaps in protection.

Other considerations

While GAP insurance can be cancelled at any time, there are a few things to keep in mind. First, be sure to review the terms and conditions of your policy, as some providers may charge a cancellation fee. Additionally, if you have leased your vehicle, your lease contract may require you to keep GAP insurance until the end of the term. Similarly, if a lender requires you to buy GAP insurance, you may need to keep the coverage until the loan is paid off. Finally, if you have paid your GAP insurance premium upfront, you may be eligible for a refund when you cancel your policy, although this will likely be prorated based on how long you had the coverage.

How to cancel GAP insurance

Cancelling your GAP insurance is a straightforward process, but there are a few things to keep in mind to ensure you don't lose money and that there are no gaps in your coverage.

Things to Consider Before Cancelling:

Before you cancel your GAP insurance, it's important to review the terms and conditions of your policy. Some insurers charge a cancellation fee, especially if you cancel within the first 60 days of purchasing the policy. This fee can be as high as 50% of your premium. It's also important to consider whether you will have any gaps in your coverage if you cancel. If you still owe money on your vehicle, cancelling your GAP insurance could leave you vulnerable if your car is totalled or stolen.

How to Cancel:

To cancel your GAP insurance, you will need to contact your insurer. They will provide you with a form to fill out to cancel your policy and refund any remaining money. You can also cancel by submitting a written request, which should include your name, address, and vehicle identification number (VIN). If you purchased your GAP insurance through an insurance company, you may be able to cancel online. If you purchased it through a dealership, you may need to direct your request to the insurance company they use to provide GAP coverage.

Getting a Refund:

If you've paid for your GAP insurance upfront, you may be eligible for a refund on the unused portion of your coverage. The amount of your refund will depend on how long you had the coverage and whether there are any cancellation fees. Be prepared to provide information and documents to your insurance company, such as proof that your vehicle was sold, traded, or paid off, and verification of your car's current mileage. The refund process can take some time, so don't be discouraged if you don't receive your money right away.

When to Cancel:

It's generally recommended to keep your GAP insurance for one to two years. However, you may want to consider cancelling when the remaining balance of your loan is less than the book value of your car, which is the amount you paid minus its depreciated value over time. At this point, your car's value is greater than the remaining loan balance, and you're essentially paying for coverage that you will never use.

Contacting Toyota about GAP insurance

If you want to contact Toyota about Guaranteed Auto Protection (GAP) insurance, there are a few ways to do so.

Firstly, you can contact your local Toyota dealer, who can submit repair and maintenance claims on your behalf. You can find your nearest dealer by searching online.

Secondly, you can call Toyota's customer service line. The number for this differs depending on your location. For example, the number for customers in the US is 1-800-874-8822, and they are open Monday through Friday, between 8:00 am and 8:00 pm in your local time zone.

Thirdly, you can call Toyota Insurance directly. Their number is 877-249-0086. They have various teams ready to take your call and help with your insurance needs and questions.

Finally, you can contact Toyota via their website. They have a form that you can fill out for general questions, and they also have a Claims Center where you can find your carrier's contact information if you need help with a policy or claim.

Frequently asked questions