How does gap insurance work if I refinance my loan?

I just refinanced my loan and had previously purchased gap insurance. I don't need it anymore and I'm wondering if I can get a refund for it.

Answer
“Once you refinance your loan, you typically won’t need gap insurance.
Gap insurance is recommended when the amount you owe on your loan exceeds the fair market value of your vehicle. Refinancing typically lowers your loan amount, meaning gap insurance isn’t required.
You should reach out to whoever provided the gap insurance to inquire about a refund. Most lenders charge a fee upfront for gap insurance, but if there is any unused premium, you could be refunded it. “
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Emily Maracle
Answered on Apr 30, 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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