PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Do I need gap insurance for my Toyota Prius?
I owe $23,000 and have a 60-month loan. The dealership offered me gap coverage, but I declined based on the price. I got my finance paperwork and they are offering gap insurance to me for a lower rate. Should I add it?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“SInce you have a longer loan period, it’s recommended that you add
gap insurance
to your vehicle. Terms longer than 48 months often mean that at the start of your loan, your vehicle will depreciate faster than your loan balance will fall. Vehicles typically depreciate about 20% in the first year of ownership alone. Even if you got a good deal on your car, you could still end up owing more on your loan than your vehicle is worth if it is totaled. Gap insurance would help protect you in that situation by paying the difference.
Car insurance
carriers also offer gap insurance. You should reach out to your current carrier to see if they offer it. If not, you can shop around and compare prices. Sometimes you can get a lower rate by adding gap insurance to a policy rather than going through your lender. “
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies