If your vehicle is ruled a total loss, your current auto insurance may not be sufficient. The primary auto insurance settlement is frequently based on the vehicle’s market value, which may be less than the remaining balance on your finance or lease contract.
Guaranteed Auto Protection (GAP) waives or pays the difference between the amount still outstanding on your loan or leasing contract and your auto insurance payout (less specified fees and taxes).
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Total Loss Protection
GAP may reduce or even eliminate your outstanding debt if your automobile is declared a total loss due to theft or unintentional damage and you still owe more on your loan or lease contract. 2
Can I cancel my Toyota gap insurance?
You can discontinue Toyota GAP insurance within the first 30 days and receive a full refund, less a $25 cancellation fee. You can cancel it at any time and receive a prorated refund.
How do I cancel my gap insurance?
It can take some time to get a reimbursement for gap insurance from your dealership. You’ll need to call the dealership’s insurance carrier, and you’ll almost certainly need to have a replacement gap lease or loan coverage in place before canceling. Your gap insurance reimbursement could take anywhere from a few days to several weeks to arrive. Here’s how to get a dealership’s gap coverage canceled.
Locate your vehicle purchase agreement from the dealer
Make sure you have copies of the documents you signed when you purchased your vehicle. If you can’t find them, ask the dealership for duplicates. They may be able to send you copies by email, which will save you time.
Contact the dealer’s gap lease or loan insurance provider
Contact your existing insurance provider and inquire about the steps necessary to cancel your gap policy. You may be required to provide written notice of your cancellation intent, but you may be allowed to scan and email or fax your request instead.
Provide your current contact information
Make sure the dealership’s insurance company has your current address. Without it, the cheque could be issued to an old address.
Purchase alternate gap lease or loan coverage now
Before canceling your current policy, contact your American Family representative and acquire coverage so that it is active. Before canceling your previous policy, make careful to receive details on when your new coverage will go into effect so that your coverage will not be interrupted.
Sign and return all required paperwork promptly
To speed up the process, have all documents signed and returned as soon as possible.
Another significant advantage of getting gap lease or loan coverage from American Family is the ability to pay for it in a manner that is most convenient for you. You have the option of directly transferring the check from the dealership’s insurance group to your current policy or depositing the funds and making monthly payments instead.
Get an estimate from your American Family Insurance agent while you’re thinking about your gap insurance needs. A policy issued by a company you know and trust will provide you more peace of mind.
How do I get my gap insurance refund from Toyota?
Prepare to submit the amount of the payment, the date it was received, and the confirmation number (if applicable).
TFS will send you a refund check via mail, AutoCheque, or Pay Online if you paid by mail, AutoCheque, or Pay Online. Please allow 7-10 business days for the refund check to arrive when it is mailed.
A refund will not be provided if your refund request causes your account to become past due.
Can you back out of gap insurance?
If you cancel the policy after that initial period, you will usually be given a prorated refund based on the length of time the insurance was in effect. You won’t be able to get a full refund because you’ve already “used” some of it.
Also, any return would be payable only if you had paid for the gap insurance coverage in full up advance. You should still be possible to terminate your gap insurance coverage if it was set up so that you paid a monthly amount for it (for example, as part of your monthly car loan), but you shouldn’t anticipate a return because the percentage you paid each month would have already been utilized in that month.
Gap insurance, as you may know, covers the difference between the car’s actual cash value (ACV), which is what an insurance provider would pay out in the event of a totaled vehicle, and the amount you owe on the lease or loan. So, before you cancel your gap insurance, I’d advise you to do some research.
Gap insurance is likely still required if you’re still down on your auto loan (owe more than it’s worth).
You might cancel your gap insurance if you now owe less than the car’s ACV, as it would not pay out if your car was wrecked by an insurance provider after an accident.
(For further information, see “What Gap Insurance Does and Doesn’t Cover.”)
If you no longer want your existing gap insurance coverage because you think you overpaid for it, shop around to see if you can find a cheaper one.
If that’s the case, consider canceling your current one before purchasing the new one.
If you bought your gap insurance from a dealership or a loan firm, you might be able to get a better offer from a credit union or an auto insurance business.
We advise you to look around for gap insurance, just like you would for a new car’s insurance policy.
Can I get a refund on Toyota extended warranty?
If you cancel the warranty soon after purchasing it, you may be eligible for a full refund. If you cancel a Toyota extended warranty within 30 days of acquiring it, for example, you’ll get a full refund. They should give information on how to cancel the warranty and get a refund.
Is gap insurance a good idea?
Gap insurance is absolutely worth the money if you owe more on your car than it is now worth at any point in time. If you put down less than 20% on a car, you should consider getting gap insurance for at least the first couple of years. You should owe less on the car than it is worth by that time.
How do I get my gap insurance back after I pay off my car?
Contact the insurance company and provide the policy number as well as paperwork proving the automobile was traded in, sold, or paid off early to receive a gap insurance refund. Refunds for gap insurance are normally only available for policies that have been paid in full up front. Drivers who have never submitted a gap insurance claim are not eligible for a reimbursement.
You may be able to get a complete refund minus any cancellation costs if you cancel within 30 days of the policy’s commencement date. In other circumstances, you may only be able to get a partial refund. The specifics will be determined by your insurance and state legislation.
Can I take out gap insurance after 12 months?
Many customers put off purchasing a GAP policy because they believe they have coverage for a year and wish to buy after the insurer’s “free” term expires. Unfortunately, by waiting twelve months, you will have over the 180-day buying period and will be unable to purchase the GAP policy at all.
Is gap insurance refund after payoff?
When you pay off your car, you do not get your full GAP coverage repaid. If you pay your GAP insurance payment in advance and pay off your vehicle early, you are entitled to a return of the unused amount. You are not entitled to a refund of any used premiums if you pay your GAP coverage in monthly installments. If you cancel before the end of the month, you may be eligible for a partial refund.
How much will my gap refund be?
After 22 months, if you decide you no longer require GAP insurance, you can request a refund for the remaining 14 months of coverage. Your refund will be $350 in this scenario. This only applies if you pay the full amount of GAP insurance up advance.