You do not get your full GAP coverage refunded back to you once you pay off your car.
When you pay your GAP insurance premium in advance, you are entitled to a refund of the unused portion if you pay off your vehicle early.
Can you cancel gap insurance and get a refund?
Answer: Yes, usually you can cancel gap insurance. If you just purchased the policy, depending upon your gap insurance company, it may be possible that if you cancel within a certain time period (typically 30 days) you can receive a full refund. A cancellation fee may apply.
How long does it take to get a gap insurance refund?
In four to six weeks, you should receive a check in a mail for the money that you spent on your gap insurance coverage.
What is a gap refund check?
The $500 dollar refund check you got is a refund check for the unused, pro rated amount of GAP. It is the equivalent of you paying your 12 month car insurance premium in January, In March selling the car and not getting another so you cancel the policy. Yes its your money.
Can you remove gap insurance from a car loan?
If your car’s value is now close to the loan balance, you’re good to cancel. You sold the car or paid off your loan. Gap insurance can’t be transferred to a new vehicle (you’ll have to buy a new policy), so if you get rid of your car, your gap insurance will be canceled.