Tag: refundable

Gap guaranteed auto protection insurance provides reimbursement to auto insurance policyholders who have a remaining balance in their favor for not using a portion of the policy. Many will wonder if The GAP insurance is it refundable?. Here we tell you how to obtain it, in principle if it is refundable, but before you must meet certain requirements that you must know, we also mention why it is not refundable. Is GAP insurance refundable? Here we tell you how to obtain it What is GAP insurance? The GAP insurance is to pay the resulting cash difference between the ACV of the car and the outstanding balance on your lease or loan. Which means, if you obtained a loan or leased a car, and it has been destroyed or stolen, before completing the full payment of the loan or lease, the GAP insurance is responsible for covering the difference. Is GAP insurance refundable? The guaranteed auto protection insurance GAP (Guaranteed Auto Protection), grants a refund to policyholders with unused premium balance. A case to mention as an example: you buy GAP car insurance, through a loan with a significant sum of money to buy the car, and you want to keep the emergency reserve fund, in case the car is stolen or destroyed. After two and a half years, you can pay off the car loan, sooner than expected. If you pay the insurance bill annually and not monthly, you can also get a refund for the GAP coverage, it covers the other half year already cancelled. GAP insurance reimbursements tend to be confusing, once you add conditions. Although it is not worrisome, we will mention this in the following paragraphs. When can you get a GAP insurance reimbursement? Is GAP insurance refundable? Here we tell you how to obtain it To To clear up this question, below we present when you can and when you cannot obtain a GAP insurance reimbursement. Is GAP insurance refundable? Here we tell you how to obtain it There are generally three scenarios that allow you to pay your GAP insurance and get a refund, let's see: 1. You are paying the loan Paying off the car loan, so as not to have a pending monthly bill including interest, is a great relief. Yes pay off the car loan early, you are eligible for a partial refund of unused GAP coverage. This is what a partial refund refers to. The other part of the GAP insurance policy was used while the loan was active. So you will receive a prorated refund of the unused portion. 2. You are changing to a different insurer In case If you are not satisfied with the insurer, you have the alternative of switching to a different company. Once you cancel the policy from the original provider (you must make sure you have new auto insurance in force, before canceling the original insurance), you are eligible for a refund for canceled, plus unused coverage. Usually, if you cancel the insurance policy within 30 days of the policy start date, you may have a full refund (including GAP insurance costs). If you cancel the insurance, after 30 days, the refund is prorated. It is important to check with the insurance provider for details of the policy. 3. You are selling or exchanging the car In case of selling or exchanging a car for which GAP insurance was purchased, you can get a refund for the amount of unused coverage. You should be sure to cancel the insurance until the car is legally sold or traded. We can point to an example: a car was originally purchased at a price of US$30,000, and a loan of US$25,000 is arranged to complete the purchase. GAP insurance was also purchased for one year to protect himself financiallyif the car is stolen or destroyed before paying the entire loan of US$25,000. After three months of coverage, you want to cancel the GAP insurancedue to any of the aforementioned causes (cancel the loan, change GAP insurer, sell or exchange the car). Are eligible to be reimbursed for the remaining 9 months of the yearwhatue have not been used in the GAP insurance coverage. Important Note About Loan Settlement Refunds: Once you show the GAP insurance provider the loan payoff notice, you will receive a partial refund for the unused GAP coverage. It depends on the reason why I cancel the GAP insurance, you can hope that even the car does not legally belong to you, or the personal loan is not officially in force. When you can't get a GAP insurance reimbursement Is GAP insurance refundable? Here we tell you how to obtain it Here is only one scenario where you cannot get a GAP insurance reimbursement. In case of the insured car is declared a total loss, and the GAP policy pays the difference between the car's value and the loan balance, you are not eligible to get reimbursement for the months you miss coverage. Everything is due to the fact that the insurer calculates that it has met (or exceeded) the obligation for the GAP coverage obtained, indicating that it is no longer responsible for the policy payments. What to do to recover money from a GAP insurance provider Is GAP insurance refundable? Here we tell you how to obtain it Before knowing everything relevant to requesting a GAP refund, some considerations should be kept in mind that may intervene in making the decision: You will only receive a GAP insurance refund for the unused portion. As an example, we have: if you cancel the policy after three months of coverage, you will only have a refund for the remaining nine months (if you contract one year of coverage). The reimbursement amount is based on how you pay the insurance bill. If you pay monthly, you won't be reimbursed because you only paid for the coverage you've received so far. If you cancel the insurance in a full amount, the amount of the refund will depend on how advanced the coverage was when you canceled the policy. Once the policy is canceled and you request a refund, it usually takes four to six weeks to receive the money. So, you have to apply for GAP insurance reimbursement. Although the vast majority of insurance companies do not offer them automatically. Process to cancel the GAP insurance policy Is GAP insurance refundable? Here we tell you how to obtain it Below we will present the steps to follow, assuming that you have purchased GAP insurance from an insurance provider, and not from the car dealer. (It is best to buy it from the insurance provider, it is cheaper). In principle you should contact the insurance provider. For which you must provide your personal information (your name, policy number), in addition to informing that you wish to cancel the GAP insurance and obtain a refund for the unused coverage. Important, you should not do this until after the car has been legally sold or traded, or the loan has been officially paid off. You must gather and submit all the necessary documents to the insurance provider to prove that the car was traded in, sold, and the loan paid off ahead of schedule. You must still complete and submit all the forms your provider needs to complete the payment process. If the process is still not clear, insist with the insurance provider that you need reimbursement for the remaining GAP coverage. Most insurer reimbursements send a check form that you will receive within four to six weeks of requesting payment. Frequently Asked Questions: GAP Insurance Reimbursement 1. Can I get a refund if I never used the GAP coverage? No. You cannot get a refund just because you never filed a GAP insurance claim. 2. Can I file a claim for GAP insurance reimbursement? Yes, but before you start haggling with the financial institution that granted the loan (it is not related to the GAP insurance), you must contact the insurer. The insurance company can provide the reimbursement without the need to sue. You should make sure to keep all records of phone calls, and written and email correspondence. 3. Can I get a GAP insurance refund if my auto loan is refinanced? If you refinance smartly, along with opting for a shorter loan term (plus getting a lower interest rate), you'll pay off your car loan faster. You should verify all the documents related to the loan, to see if the GAP insurance is still necessary. If you don't need it, it's best to contact an insurance agent for advice on getting reimbursed for unused coverage. It may interest you: Cheapest New Cars in America Writing Gossipvehicle