Yes, typically your Gap insurance will be cancelled out if you refinance. The terms and guidelines for Gap insurance though can vary depending upon the insurance company that the policy is written with. It thus would depend upon the terms of your Gap insurance as well as if you purchased through your current lender or elsewhere whether your Gap insurance policy would cancel out if you refinanced your vehicle.

To find out for certain if your Gap insurance will be affected by refinancing your vehicle with the same or different lender contact your Gap insurance provider and read through the terms of your current policy.

Your current Gap insurer should be able to inform you of their guidelines regarding the refinancing of your vehicle. If you already had a Gap policy in place than normally that Gap insurance would be voided out when you re-finance a vehicle so you would need to get a new Gap insurance policy.

When you have a lien holder on a vehicle and owe more than the worth of the car than it is always a good idea to have Gap insurance on it so that if the car is totaled out you will not be left paying on a vehicle that you no longer have.

Gap insurance providers' terms and guidelines differ however in general Gap insurance is available on new, used and refinanced cars, trucks and SUV’s leased, purchased or refinanced within the past 12 months. So if you know after the refinancing of your vehicle that you owe more than its actual cash value (ACV) than Gap insurance could be beneficial for you to purchase again for your new refinanced loan.