Gap Insurance Refund

2023 Ford F-150 Lightning in the mountains

There are many things you need to consider when purchasing a new car in Stephenville. On top of the required liability insurance, it may be worth considering additional gap insurance. As a benefit, if you pay off your car loan ahead of schedule, you may be able to enjoy extra money in your pocket. Although required liability insurance continues after your car loan is paid off, a gap insurance refund is possible. Learn how gap insurance refunds work with Bayer Auto Group.

What Is Gap Insurance?

You may already know that cars experience depreciation after you purchase a new car. That means, when you leave a Brownwood-area lot with a new car loan, there could be a period where you owe more on the vehicle than it’s worth. In the event of an accident where your vehicle is totaled, standard insurance coverage only pays out what the vehicle is worth. The standard coverage doesn’t factor in the money you may still owe on an auto loan for the vehicle you can no longer operate. Gap insurance is helpful because it covers the gap between the cash value traditional insurance pays out and the remaining amount on your loan. Learn more about what gap insurance covers with the Bayer Auto Group finance team. 

How Does a Gap Insurance Refund Work?

While it’s not possible to get a total gap insurance refund after your loan is complete, you can get a partial sum back. So, how does a gap insurance refund work?

  • Lump Sum Payment: If you’re able to pay off the gap insurance refund in advance, you’re qualified for a refund on the remaining portion of the policy. 
  • Monthly Payments: If monthly payments are more comfortable, you aren’t entitled to a refund on the previous months. However, you may get a small refund if you cancel early in the month. 

How to Cancel Gap Insurance

If you have the proper paperwork in hand, canceling gap insurance is a relatively simple process. Start by contacting your gap insurance provider to begin the cancellation process and be ready to present the following documentation: 

  • Gap insurance cancelation forms
  • Copy of an odometer disclosure statement
  • Copy of auto loan payoff showing the date your vehicle was paid off

Once the proper paperwork has been processed, you’ll be issued a gap insurance refund for the remaining portion of the policy. 

Explore Your Coverage Options with Bayer Auto Group!

Our finance team is ready to guide you through the car-buying process and your insurance options. Contact us if you have questions about your gap insurance refund and learn more about coverage requirements when purchasing a used car around Abilene. 

 

More from Bayer Auto Group

  • 2024 Chevy Silverado 1500 Dimensions & Exterior Colors

    As a full-size truck, the 2024 Chevrolet Silverado 1500 is a big vehicle. Granted, as a working vehicle, you’ll spend lots of time driving it to and from worksites in Stephenville, but whether you have a garage or opt for street parking, you’ll have to find space for it somehow!  In this overview, we’ll focus…

  • 2024 Jeep Grand Cherokee Specs & Performance

    The 2024 Jeep Grand Cherokee specs are here! Jeep has released details about the 2024 Jeep Grand Cherokee and its hybrid cousin, the 4xe. And so, we at Bayer Auto GroupComanche are here to tell you all about their specs and how they perform, both on and off the road. Before you come in from Stephenville to…

  • 2024 Ford F-150 Technology

    With Bayer Auto Group, you can begin your adventure into the rugged and advanced technology of the 2024 Ford F-150, crafted for those drives in the Stephenville area that demand reliability and strength. In this guide, we’ll dive into the practical yet innovative features across different trims, ensuring you discover the ideal mix of power and ingenuity….

Bayer Auto Group 31.8980034, -98.6022893.