How hard is it to cancel gap insurance?

I want to sell my 2018 Kia Soul and cancel the gap insurance on it. Will it be difficult to do? I've heard people sometimes have issues with contacting dealerships and getting refunds for gap coverage.

Answer
“The difficulty in canceling your gap insurance will depend on the terms and conditions of your coverage with the dealership. Every agreement is different, and the ability to get a refund often depends on the lender or gap insurance company.
Your dealership may also work with an outside company for your gap insurance.
Getting a refund can also depend on how you paid for your gap insurance. If you paid for your gap insurance upfront at the beginning of your loan, you may be due a refund. If you paid monthly, you most likely won’t be eligible for one as you are paying as you go.
The best thing you can do is reach out to the dealership. Ask questions to be sure you understand the terms and conditions surrounding your insurance. They’ll also be able to let you know who you may need to reach out to, if they use an outside company for insurance. “
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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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