The problem is, you'll still owe every dime of that $20,000 on your car loan, plus interest and fees, even when the insurance company will only pay $13,800 if an accident causes a complete loss. The acronym GAP stands for Guaranteed Auto Protection. If the car’s value is $15,000, then there’s nothing left for gap coverage to cover. Read on to find out how. After that, you may get a prorated refund or you must pay a fee. Cancelling within the first 30-days: If you wish to cancel your policy within 30-days of purchasing it, please let us know and so long as no claim has been made and no claims are pending, we'll cancel your policy immediately and refund the amount paid in full. A Guaranteed Auto Protection, otherwise known as GAP insurance, is similar to car insurance. Gap Insurance Refund Policy. Gap insurance serves a valuable purpose, but it's important to make sure you aren't paying for a service you don't need. Automobile Insurance Deductible (if applicable) You may be responsible for your insurance company deductible Adjustments for Contract Exclusions. The gap insurance refund payment is determined by how early you pay off the loan. When that happens, you may be due a refund for the premiums you won't be using. Keep in mind that you only need gap insurance for a short time, usually one to two years. Did you sell or trade your vehicle within 5 to 6 years of purchasing it? Get the odometer statement. Navigating a refund from your dealership for gap insurance can take some time. GAP insurance is a supplemental form of auto insurance coverage that’s designed for leased and financed cars; Not everyone who finances a car needs GAP insurance but anyone who owes more than the car is worth does; The purpose of GAP is to pay off a car loan or financial agreement when the financed car is totaled in a covered loss When you cancel your gap coverage, just ask for it. Getting a refund is also quite easy. You may receive a refund without taking any action. If you paid the car off at the end of 24 months, you would have 12 months remaining, which means a refund of $333.36 for the time you didn't use the coverage. What did the insurer promise to do if you paid off your loan early? Your car is no longer brand new. A GAP Insurance Refund Form is a form designed to receive refund requests for GAP insurance. GAP Deficiency Waiver Addendum Financing contract (loan or lease agreement) Refund amounts for any cancelable items such as credit life insurance, accident and health insurance, service contracts, theft deterrent products, and GAP if cancelable due to the claim. Any loss normally covered by comprehensive or collision insurance also is covered by GAP insurance. Six months later, the car’s value has dropped to $21,000. Otherwise, you can contact your state commerce department if your insurer refuses to issue a refund. The Salutation. If the policy has a cash value, then request that the amount be paid by check when sending any premium refunds. What you may not know is many of these protections are cancellable and refundable. * Refund for Cancellable Products The GAP insurance refunds after refinancing can also be received in some situations. Depending on your car, the price you paid, and your interest … When you pay your GAP insurance premium in advance, you are entitled to a refund of the unused portion if you pay off your vehicle early. We are a consumer advocate website that helps auto consumers receive refunds for protections like Gap Insurance, warranties/service contracts, maintenance plans, and several more! You’ll need to contact the insurance company that the dealership works with, and you’ll probably need to have a replacement gap lease or loan policy up and running before canceling. The insurance provider will cancel your insurance policy and issue a refund, usually in the form of a check, for the remainder of your gap insurance coverage. Some policies cover the insurance deductible. To the uninitiated, GAP insurance comes into play when you suffer a total loss to your vehicle while you’re still making payments on it. Am I Owed A Refund? The first step once you've paid off your vehicle in full is to review your policy. You buy the gap insurance if you purchase the vehicle. However, if your car is declared a total loss and you don’t need to file a gap insurance claim, whether or not you will get a refund depends on your insurer and your state’s laws. How do refunds work for extended warranties and/or gap insurance? Find out today if you're owed a refund for free! It’s sometimes called Shortfall Insurance or Price Protection Insurance. Another common reason to no longer need some of your gap coverage is if you purchased the coverage through the dealership, but have a better gap coverage offer through your standard car insurer. GAP or Guaranteed Asset Protection is a seperate insurance product you buy, basically because the amount you owe on yo car may or may not be near what your car is worth to an insurance company paying on a total loss for the car. Receive A Free Refund Analysis. Are you overpaying for car, home, or renters insurance? Keep in mind that you only need gap insurance for a short time, usually one to two years. The insurance provider will cancel your insurance policy and issue a refund, usually in the form of a check, for the remainder of your gap insurance coverage. GAP insurance has become an option in recent years when you purchase a new car from the dealer. When you are in an accident or there is another event that causes so much damage to your vehicle that it needs to be replaced, having GAP insurance refund can come in really handy. The gap insurance refund payment is determined by how early you pay off the loan. If you pay your GAP coverage in monthly installments, you are not entitled to a refund of any used premiums. All you have to do is call the company providing the coverage and tell them you’d like to cancel. Helping auto consumers receive prorated refunds for auto warranties, gap insurance, maintenance plans, tire and wheel protection, and more. The gap insurance company will refund any premium that was overpaid. Include a salutation at the end of the letter. You can get a GAP insurance refund for the coverage you didn't use if you pay your vehicle off early. Gap insurance is an insurance coverage option that covers the gap between what you owe on your car loan and what your vehicle is worth. 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