How do gap insurance refunds work if I refinance my vehicle?

I refinanced my car and received a notice from my previous bank that I should contact my dealership about a refund for gap insurance. It said it was in regards to unearned premiums. Would I get money back if I call?

“Since you received a notice from your bank that you may be eligible for a refund, you should definitely reach out to your dealership.
Gap insurance is often calculated for the lifespan of your loan. If you refinance your loan and cancel gap insurance, you may be eligible for a refund of the unused portion.
The refund will be for unused premium only, so you won’t get the full amount that you paid. It will be calculated based on the amount of time you have left on your loan.
When you do get in touch with the dealership, they should be able to provide you with the exact terms and conditions of your insurance and the refund you may be receiving. “
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.

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