Quick Answer: How Long Does It Take To Get A Refund For Gap Insurance?

How do I get my gap insurance refund after refinancing?

Refunds After Cancellation Although the coverage ends when the loan is paid off, contact the gap insurance company directly to fill out any necessary cancellation paperwork and request a refund for any coverage that you did not need or use..

Can I cancel gap insurance and get a refund?

Answer: Yes, usually you can cancel gap insurance if you determine that you no longer need it. Gap insurance policies, terms and fees vary. … After that initial period, if you cancel the policy you normally will receive a refund prorated according to the length of time that you kept the policy in effect.

What gap insurance does not cover?

Gap insurance does not cover: car payments in case of financial hardship, job loss, disability or death. repairs to your vehicle. the value of your car or balance of a loan if your car is repossessed.

Should I buy gap insurance from dealership?

The bottom line is that your auto dealer may be more than willing to sell you this type of coverage, but that doesn’t mean you necessarily need it. Gap insurance is only necessary if you owe more on the car than it is worth. If you’re putting a sizable amount down on your purchase, you may not need gap coverage at all.

Who pays gap insurance refund?

For instance, if a vehicle is financed for 48 months but is paid off in 24 months, two years’ worth of premium charges are due back to the insured as GAP coverage is normally paid for in advance. In addition, a car owner who sells or refinances a vehicle also is owed a refund.

Does Gap Insurance always pay out?

Gap insurance covers the difference between a totaled car’s value at the time of the accident and the amount remaining on the loan. The biggest issue is that the payout doesn’t always completely close that gap.

Do you get money back when you cancel gap insurance?

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. In many cases, it can take from between 4 to 6 weeks to get your refund back. Most often, the refund is sent to you in the form of a check.

Does Gap Insurance help you get another car?

It’s actually an acronym that stands for “Guaranteed Auto Protection.” The guarantee is that in the event of a total loss, GAP insurance will cover your financial obligations, and leave you free to start hunting for a new car, bike, scooter or whatever you choose as your replacement vehicle.

How Does Gap Insurance work if car is totaled?

Gap insurance is an optional car insurance coverage that helps pay off your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value. … Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.

How do I get a refund on my gap insurance?

You will have to do the following:Contact your GAP insurance provider.Send a GAP insurance cancelation letter.Wait for up to six weeks for a refund payment.

Will gap cover if insurance doesn t?

If gap insurance coverage doesn’t cover a totaled car with no insurance, what will? Nothing. You must have a personal auto policy in place for gap insurance coverage to kick in if your car gets totaled. Without a personal auto policy, there would be no “gap” for gap coverage to fill, so it doesn’t even make sense.

How do I cancel my gap insurance from a dealership?

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. You may have to wait anywhere from a few days to several weeks to get your gap insurance refund.

How much is a gap refund?

For example, if you paid $1,000 for 36 months of insurance coverage, the monthly amount would be $27.78. 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.

Can a gap claim be denied?

There are instances when gap coverage won’t pay out. For example, if the claim for the totaled or stolen car is denied for some reason, or if your car insurance coverage lapsed, your gap insurance won’t come into play. … In both cases, gap insurance would not cover the claim because the car wouldn’t be declared totaled.

How do I contact gap insurance?

Please contact us at 866-493-0184 between the hours of 8AM-6PM Central Time for specific questions on your GAP addendum/policy.