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.
“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. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How much income do you need to make a year to afford a $200,000 Ferrari?
"How much income do you realistically need to make to afford a $200,000 Ferrari? I'm thinking of buying a Ferrari, as I recently had a promotion and bonus at my job."
Jul 28, 2021
What happens to a car loan during a divorce in California?
My wife and I took out a loan on a Subaru several years ago before we decided to split up. There's still about $20,000 to pay off. We've decided that she can keep the car, but my name is still on the loan. Is there any way to remove my or am I stuck with it?
Aug 09, 2021
How can I pay off my high-interest car loan more quickly?
I got a 66-month, $16,000 loan with an annual interest rate of 18% on a $25,500 car. I recently landed a better-paying job and I could easily double my monthly payment. Is there a way I can pay off this loan more quickly?
Mar 12, 2021