Plenty of drivers think they know about gap insurance, but few know about the specifics, like a gap insurance refund. Here at Sansone Auto, it’s our job to help New Jersey drivers learn about how to protect their new vehicles. That’s why we’ve created this breakdown on gap insurance and everything it entails.
What is Gap Insurance?
Another form of insurance coverage for your vehicle, gap, or guaranteed asset protection, insurance is a specific extension of your coverage. Gap insurance is designed to cover the total value of your vehicle, so it’s usually only necessary if you are leasing or financing a vehicle.
In the event of an accident, your ordinary insurance will cover the cost of damage to your vehicle, but what if that damage exceeds your vehicle’s value? That’s where gap insurance comes in to cover the total cost.
What is a Gap Insurance Refund?
If you do have gap insurance and you manage to pay off your loan early, you may be eligible for a gap insurance refund. Typically, you won’t get every cent back, but there are a few ways to cash in if you never used your gap insurance.
Let’s say you were prepared to pay for 24 months of gap insurance, but you paid off your auto loan by month 14. The insurance company should refund you for the remaining 10 months.
You will need to show your car insurance provider a payoff notice in order to receive this refund. You can find the exact terms of this documentation and your refund policy as a whole in the fine print of your insurance policy, so be sure to read carefully.
Visit Our Finance Center
To learn more about gap insurance refunds, leasing a new vehicle, or anything finance-related, visit our Sansone Auto finance center soon. Our expert finance team will help you secure your gap insurance refund as best we can. Visit us today!
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