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Q

Can I be reimbursed for any portion of the amount I paid for gap insurance when I trade in my vehicle?


A

It depends on how you purchased your vehicle. If you were financing your vehicle, I do not believe you will receive any refund. It is usually part of your vehicle's financed monthly payment. The coverage that gets paid for (monthly) is used that same month, even if you did not have to make a claim against it. 

If you paid for your vehicle and your gap insurance policy up front in full, you will need to contact the company you purchased the policy through to see if there is any unused premium which needs to be refunded back to you.

If your insurance rates increase when you trade-in your vehicle, you can come here to find auto insurance quotes for new vehicles.



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2 Responses to "Can I be reimbursed for any portion of the amount I paid for gap insurance when I trade in my vehicle?"
  1. CarInsurance.com

    Tara - If you paid in full for your gap insurance when you bought the car and then you paid off your car loan early, yes, you would normally receive a refund on your gap insurance. Policy terms vary, but typically gap insurance is for the life of the loan and if you pay off the loan early you can request a refund. Your refund should be for the unused portion of the gap coverage, so it will be a pro-rated amount.

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  2. Tara Eve

    I have a five year car loan. If I pay off for the car in about a year, would I be able to get a refund on gap insurance?

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