I cancelled my gap insurance on car after having it for 22 months. How long does it take to get refund?

2 Comments

1. oklatom says:

   February 10, 2012 at 9:57 pm

   You may not. Gap insurance protects the lender, not you, from being left out if the vehicle is totaled and the amount it’s worth doesn’t cover the remainder of the loan. Read your policy, it may say there is no refund if you cancel. In any event you would only get back what was paid in advance of the date you canceled if you entitled to a refund at all.
2. new_single_1 says:

   February 10, 2012 at 10:17 pm

   I wasn’t aware you could get it back . . . this is just a safeguard in case you total the car before you have enough equity through your payments for your insurance to pay the lendor the remaining balance on your loan, like say you wreck your new $40,000 vehicle after making only a few hundred $$$ in payments, but it’s appraised at just $35,000, you pay for gap insurance just in case this happens so you don’t have to pony up $5,000 of your own cash to pay back the lendor for the car after your insurance pays them the appraised amount

   gap insurance is fairly cheap, I paid ~$400 for ~$27,000 loan and it really won’t cover you for long if you make timely payments, and as I try to do often, make large payments to get the principle balance down. after nearly 2 yrs I’d expect that the principle balance on the loan and the appraised value of your vehicle would be approximately the same, in which case the gap period ends

   I really doubt you’ll get anything back, but please post if you do!