Gap insurance is intended to make you financially whole again if your car is totaled but you still have a loan balance to pay off. <\/p>\n\n\n\n
If you purchased this coverage from the dealership and you no longer want it, you may be able to get a gap insurance<\/a> refund for the unused portion. Contact the dealership to follow the correct steps and make sure you request a refund before the deadline \u2014 but not all gap insurance is refundable.<\/p>\n\n\n\n Although it can be a wise add-on when you buy or lease a new car, you only need gap coverage as long as your car is financed, so cancel it if you pay your loan off early.<\/p>\n\n\n\n Before your loan is paid off, it may be time to cancel gap insurance if:<\/p>\n\n\n\n You cannot get a gap insurance refund if:<\/p>\n\n\n\n To get a gap insurance refund from your dealership, follow these steps:<\/p>\n\n\n\n If you paid your entire premium upfront, here\u2019s how to calculate your estimated gap insurance refund:<\/p>\n\n\n\n Example: Let\u2019s say you take out a $720 gap insurance policy for a 36-month coverage period, and you are eligible for a full refund according to the terms and conditions of your policy. If you are currently paying about $20 per month and you decide to cancel that policy with 11 months remaining, you could receive a total refund of up to $220.<\/p>\n\n\n\n Keep in mind that this might not be the exact refund you would receive\u2014some policies may charge you a cancellation fee. Additionally, if your car dealer rolled your gap insurance payment into your loan amount, the refund may not be so straightforward because the loan\u2019s interest clouds the picture.<\/p>\n\n\n\n On the other hand, if you cancel your policy shortly after purchasing it, you may be eligible for a full refund. You\u2019ll need to contact your dealership (or the gap insurance provider it works with) to know for sure.<\/p>\n\n\n\n Insurance companies generally offer more affordable gap insurance pricing than dealerships, mainly because it’s cheaper as a policy add-on than alone. However, you may end up paying interest on your gap coverage on top of the premium if its price is rolled into a loan or lease. Here are a handful of insurance companies that offer gap insurance to auto policy holders at lower rates than the typical dealership:<\/p>\n\n\n\n It typically takes one or two months to secure a gap insurance refund after you\u2019ve contacted the dealer and worked out the details to request a refund.<\/p>\n<\/div>\n <\/div>\n<\/li>\n\n\n\n You may be eligible for a reimbursement if you paid for your gap insurance in full and are canceling before the end of your coverage period. You should be able to get a prorated refund for the months of coverage you no longer need.<\/p>\n<\/div>\n <\/div>\n<\/li>\n\n\n\n No. If your vehicle is declared a total loss after an accident and you were insured, you will get an insurance payout. You can\u2019t get a refund if your provider has already paid out on your current premium period.<\/p>\n<\/div>\n <\/div>\n<\/li>\n<\/ul>\n<\/div>\n\n \n <\/div>\n\n\n\nWhen to cancel gap insurance from the dealership<\/h2>\n\n\n\n
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How to get a gap insurance refund from the dealership<\/h2>\n\n\n\n
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How to calculate your gap insurance refund<\/h2>\n\n\n\n
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Why consider gap from insurance companies<\/h2>\n\n\n\n
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