Sounds reasonable. Some insurance policies include it, some finance deals include it, but if you need to purchase it on your own, then $350 on a $25K car doesn't sound too bad for your peace.
Gap Insurance: How It Impacts Your Car Loan or Lease At first I thought this was a case of "Dumb and Dumber" but evidently GAP is essential in the world of leasing. I would still shop the rate at an off-dealer site. $350 doesn't sound unreasonable but even if you shave it down to $300 it's still worth looking into. If you haven't already signed your life away???? Please think about not leasing a Prius. It's rather like getting a triple quarter-pounder with extra large fries and a diet coke.....unless you own a business, you're already independently wealthy, and you're just driving a Prius to scratch a green itch. Good Luck!
It's also a good idea when buying unless you make a massive up-front down payment. I have it (through Toyota Financing), and I can cancel it at any time for a pro-rata refund of the premium. At any point where the insurance payoff is equal or greater than what's owed on the financing, you no longer need the coverage and will see no benefit. It really should not be needed, but as insurance companies love to low-ball coverage for "depreciation" nonsense, it really is a good idea if you can't pay cash when you pick up a new car.
True, but I usually see GAP as a warning light indicating that you're over paying for the car. The last new car that we bought (a 2012 bought in 2012) wasn't eligible for GAP - and we put very little down money on the car. (like....$1,000, IIRC) Granted.....situations are different from deal to deal but I see Priuses as VERY poor cars to lease or even pay retail for if you buy one new....especially now with gas well below $2.50 gallon. Priuses are selling for something like MSRP minus 2k according to my sources, and a lot of the IRS refund purchases have already wound their way through the system. Car interest rates are LOW. In other words......it's getting to be a BUYERS market again. YMMV
It's also a matter of risk management. If you don't mind eating an extra $2-3K to the finance company for a car you can't drive anymore, don't waste money on the GAP insurance (which for me was less than $1,000). If you know you don't want to be left with debt on a car that's in the junkyard or can't be certain of your finances if/when that happens, you might want the coverage for peace of mind. Again, at least through Toyota, you can cancel the policy for a pro-rata refund of the premium once you know the book value of your car is not exceeded by the amount still owed on it. I know it used to be car insurance companies offered GAP coverage, but now hardly any seem to...leaving it to the finance company, which I think hurts the consumer because the insurance company would likely give a better overall deal for the GAP coverage rider.
