Can my wife and I get a refund for gap insurance if we don't use it?

My wife got into an accident and her car was marked a total loss. Our insurance payout will cover what's left on our loan. We did purchase gap insurance from the dealership. Are we able to get a refund since we paid for it and never used it?

Answer provided by
Emily Maracle
Answered on May 03, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“Depending on how you paid for your gap insurance, you may be eligible for a refund.
Most gap insurance is either paid for upfront or through your monthly loan payments. Typically, with the upfront payment option, you’d be eligible for a refund based on the unearned premium for the length of time left on your loan.
Since you purchased gap insurance through your dealership, you’ll want to reach out to them directly. They’ll be able to tell you if you’re due a refund based on the terms of your coverage. “

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