Does a new 2020 Toyota Corolla need gap insurance?

My sales rep at the dealership said that I got a really good deal and didn't need to buy gap insurance. Is this true? Should I assume that the value of my Corolla isn't going to depreciate below what I owe on my loan?

“You should always do your own research to confirm. You can look at the current value of your vehicle on a reputable site like Kelley Blue Book and what you owe on your loan.
You should also calculate what your vehicle will be worth in a year and what the balance of your loan will be. If the value of your vehicle will always be higher than what you owe on your loan, you can skip the gap insurance.
If you’re unsure or worried, you should add it. You are typically able to cancel gap insurance when you no longer need it.
You can also shop around if cost is a concern. Most car insurance carriers offer some form of gap insurance with their policies. You may be able to find cheap car insurance with gap coverage compared to what you are currently paying. “
Emily Maracle
Answered on May 03, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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