How can I remove gap insurance from my car loan after I break even on the loan?

I took a look at my car loan statement, and I noticed that I've finally broken even on the loan. Because of this, I no longer need gap insurance. How do I get rid of it?

Answer
That’s a smart move to cancel your gap insurance when you break even, so kudos for that! If you purchased this coverage from your insurance company, you can usually just cancel gap insurance online or over the phone. They’ll usually give you a prorated amount of the insurance back.
If you purchased gap insurance from a dealership, you’ll have to contact them to cancel the coverage, typically via phone. You should also get a prorated amount back, although they may not volunteer this information. Ask about a refund while you’re on the phone, and double-check to make sure you get the refund.
Even though you’re canceling your gap insurance, you still need full coverage insurance on your vehicle if you have a loan. This might be a good time to look at your policy and compare it to other car insurance rates. The Jerry app makes this easy, allowing you to sign up and compare rates in just a matter of minutes.
Eric Schad
Answered on Nov 18, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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