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Q

Am I due a refund on part of my gap insurance if I pay the car off or trade it in?


A

It depends upon how you purchased the gap insurance for your vehicle if you will be due a refund of any type if you pay off the car or trade it in.

If you financed your vehicle and the gap insurance is part of your vehicle's financed monthly payment then it is doubtful that you would receive any refund for your gap insurance.   That is because when the coverage gets paid for monthly, such as part of your financed monthly payment, then the coverage is used that same month.

If you paid for your gap insurance policy in full, then you will need to contact the company you purchased the policy through to see if there is any unused premium that should to be refunded back to you when you trade in or pay off your car.

For an affordable car insurance quote for your new or used vehicle, click here.

Is Gap insurance transferable if I sell the car?

No, normally gap insurance is not transferable if you sell or transfer the ownership of your vehicle. If you plan on selling a car that you have gap insurance coverage on you should contact your gap insurer to discuss the situation, but in general it does not transfer.  Instead, if on the new car you buy you will again owe more than the vehicle is worth, you'll normally need to purchase a new gap insurance policy.



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9 Responses to "Am I due a refund on part of my gap insurance if I pay the car off or trade it in?"
  1. Visitor

    I have sold/traded my previous 2 vehicles and was issued a pro-rated refund back for my GAP purchase. It was financed into my monthly payment and not paid up front.

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  2. Anonymous

    makes no sense

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  3. Anonymous

    FINALLY AN ANSWER TO MY QUESTION!! I TRIED TO TALK TO GMAC/ALLY FOR 3 HRS WITH NO ANSWER, JUST TRANSFERRED BACK AND FORTH. ALL I WANTED TO KNOW IS IF I WAS ENTITLED TO A REFUND SINCE I PAID MY LOAN OFF...SINCE IT WAS WRAPPED INTO MY LOAN IT SEAMS MY ANSWER IS NO. THAT IS ALL THEY NEEDED TO SAY! THANK YOU

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  4. Anonymous

    I am having a similar problem. I bought a new Mazda and paid for both GAP and Wheel Insurance up front. After a year, I traded the car and paid the note off in full. Then I returned to the Mazda dealership and filed for refunds on both insurance policies. After two months, I called the dealership and was told that the refund had been recieved by them and that due to the fact that the dealer was being fined by the insurance company (Chase) I was not getting any of my refund back. With both insurances will be over $800+. Pretty hefty fine they paid WITH MY MONEY! I smell a rat.

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  5. Anonymous

    Just the info I was wanting to know.

      Reply»  
  6. Anonymous

    i am confuse i dont understand why You never notify me about how much you paid to capital one beacuse they still have me under collection even though they collect money from two ins. companys I dont know why i was paying two ins. and i still have problems.my claime CA958655587 LAST VIN 016096 MY MAIL IS JOSE4MARTINEZ@YAHOO.COM

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  7. Anonymous

    interesting!

      Reply»  
  8. Anonymous

    this is really great info and was very helpful to me. tah, tah. merry christmas 12/08

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  9. Anonymous

    I know you aren't this GAP company, but I just want to tell someone this...I got a car through Suzuki, they added $600 worth of GAP Insurance to the balance of the truck. In July '08 I applied for the balance of the GAP Insurance to be returned to me as I pd off the truck. I called GAP 09-0408 and was informed by Ryan at GAP that the check was sent out 8-15-08. I went to Suzuki and was told two different stories as to where my check was supposed to go. I called GAP back and spoke to Ryan again and was informed that the check had been cashed.Suzuki did not call to tell me MY check was in and they had two numbers to call to reach me. I need my money which should be about $500.

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