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. How long does it take to get a gap insurance refund.
If you pay your gap coverage in monthly installments you are not entitled to a refund of any used premiums.
How to get gap insurance money back. You can get a gap insurance refund for the coverage you didn t use if you pay your vehicle off early. You do not get your full gap coverage refunded back to you once you pay off your car. Gap insurance serves a valuable purpose but it s important to make sure you aren t paying for a service you don t need.
Be sure that you ve got copies of the paperwork you signed when. The gap insurance refunds after refinancing can also be received in some situations. You may receive a refund without taking any action.
You must notify the insurer and show them a payoff notice to receive your gap insurance refund. 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. If you purchased gap insurance through your lender and then sell or refinance the car the policy will cancel automatically when you pay off the loan and you may receive a prorated refund within a few weeks of completing the sale.
Locate your vehicle purchase agreement from the dealer. You should calculate your due refund by multiplying the price per month by the number of months you won t be using the premiums. In many cases it can take from between 4 to 6 weeks to get your refund back.
Reach out to the group you re currently insured under and ask. Check your lease or financing agreement for any information about gap insurance refunds. To determine your due gap refund you have to check the policy expiration date and how much you paid for the gap insurance then divide that amount by the number of months your policy covers.
Most often the refund is sent to you in the form of a check. Contact the dealer s gap lease or loan insurance provider. In most cases you will not receive a refund on gap insurance payments.
It doesn t matter if you prepay car payments or if you never make a claim on gap insurance you will not typically receive money back on unused gap insurance. 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. Getting an automatic refund.