How to Cancel Gap Insurance

Gap insurance is a type of auto insurance that pays the difference between the actual cash value of your car and the amount you owe on your loan or lease. While it can be a helpful addition to your insurance policy, there are times when you may want to cancel your gap insurance. In this article, we will discuss the different methods to cancel your gap insurance and answer some frequently asked questions about gap insurance cancellation.

How to Cancel Gap Insurance

There are several ways to cancel gap insurance, depending on how you purchased it:

Purchase Method
Cancellation Method
Through a car dealer
Contact the dealer and request cancellation
Through an insurance company
Contact the insurance company and request cancellation
Through a finance company
Contact the finance company and request cancellation

It is important to note that some insurance companies and finance companies may require written notice of cancellation. Make sure to ask about their specific cancellation policies and procedures.

Cancelling Gap Insurance Through a Car Dealer

If you purchased your gap insurance through a car dealer, the first step to cancelling it is to contact the dealer. They will be able to provide you with their specific cancellation policy and procedure. Some dealers may require written notice of cancellation, while others may be able to process the cancellation over the phone.

It is important to note that if you financed your car through the dealership, cancelling your gap insurance may affect your loan terms. Make sure to ask the dealer about any potential changes to your loan before cancelling your gap insurance.

If you are unable to contact the car dealer or are unsatisfied with their response, you can also contact the insurance company or finance company that provided the gap insurance.

Cancelling Gap Insurance Through an Insurance Company

If you purchased your gap insurance through an insurance company, the first step to cancelling it is to contact the insurance company. They will be able to provide you with their specific cancellation policy and procedure. Some insurance companies may require written notice of cancellation, while others may be able to process the cancellation over the phone or online.

It is important to note that cancelling your gap insurance may affect your overall insurance policy. Make sure to ask the insurance company about any potential changes to your policy before cancelling your gap insurance.

Cancelling Gap Insurance Through a Finance Company

If you purchased your gap insurance through a finance company, the first step to cancelling it is to contact the finance company. They will be able to provide you with their specific cancellation policy and procedure. Some finance companies may require written notice of cancellation, while others may be able to process the cancellation over the phone or online.

It is important to note that cancelling your gap insurance may affect your loan terms. Make sure to ask the finance company about any potential changes to your loan before cancelling your gap insurance.

FAQ

What is gap insurance?

Gap insurance is a type of auto insurance that pays the difference between the actual cash value of your car and the amount you owe on your loan or lease.

When should I cancel my gap insurance?

You may want to cancel your gap insurance if you have paid off your car loan or if you no longer need the extra coverage.

Can I cancel my gap insurance at any time?

Yes, you can cancel your gap insurance at any time. However, some insurance companies and finance companies may require written notice of cancellation.

Will cancelling my gap insurance affect my loan or insurance policy?

Cancelling your gap insurance may affect your loan terms or overall insurance policy. Make sure to ask the appropriate company about any potential changes before cancelling your gap insurance.

Can I get a refund if I cancel my gap insurance?

It depends on the specific policy and company. Some companies may provide a prorated refund, while others may not offer refunds for cancelled gap insurance.

Overall, cancelling your gap insurance can be a straightforward process, but it is important to understand your specific policy and company’s cancellation procedures. Make sure to ask any questions and consider any potential changes to your loan or insurance policy before cancelling your gap insurance.