If you're still making payments on your Toyota, GAP can minimize or even eliminate your financial obligation if your vehicle is declared a total loss. A primary auto insurance settlement is generally based on vehicle market value, which could be less than what you still owe on your finance or lease contract.
So who pays the remainder? You do - unless you have Guaranteed Auto Protection.
Toyota Financial Services’ GAP program is designed to protect you and your family from an unexpected financial burden if your vehicle is declared a total loss from causes such as theft, accident, fire, or flood. GAP will pay the difference (or deficiency) between your vehicle's market value and the balance on your finance or lease contract, including up to $1,000 of your auto insurance deductible (if applicable) in most states.
How GAP Works (for illustrative purposes only):
| Finance or lease contract payoff amount |
$23,000 |
| Minus total auto insurance settlement |
-$20,000 |
| |
$3,000 |
| Plus auto insurance deductible |
+$1,000 |
| Total out-of-pocket expense |
$4,000 |
| Minus Toyota GAP payment4 |
-$4,000 |
| Total owed to financial institution to pay off finance or lease contract |
$0 |
GAP is available only at the time of vehicle purchase or lease on new Toyota vehicles and on used Toyota vehicles.
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