At McDonald Hyundai, we aim to ensure all your automotive needs are met under one roof. If you leased or financed a car from us, you may have purchased gap insurance. This can be helpful, especially when traveling around Littleton, Parker, and Castle Rock, CO.
However, after some time, you may find that it’s no longer necessary and want a refund. This article will explain what gap insurance is, how you can cancel coverage, get a refund, and more.
If your car is totaled or is stolen and can’t be retrieved, gap insurance will cover the remaining cost of your auto loan. Gap insurance, an optional car insurance coverage, is sometimes called loan/lease gap coverage, but they are the same.
Gap insurance is only available to the original loan or leaseholder of the car. So, if you sell it or return it to the dealership, that coverage is automatically voided. It’s meant to be used with collision coverage or comprehensive coverage. Consider gap insurance coverage if:
New lease/loan holders often purchase gap insurance at the dealership. However, many insurance companies offer this coverage, which means you may be able to buy it after you purchase your car. They’ll usually require your car to be brand new; however, some companies will provide insurance, if it’s only a few model years old.
The process of canceling gap insurance is straightforward. You must call the insurance company or dealership that provides the coverage and tell them you’d like to cancel, which can be done anytime. If you bought gap insurance through your insurance provider, you might be able to remove the coverage from your policy online.
That said, if your car is leased, keeping gap insurance may be a requirement.
Remember that you might also need to sign a cancellation form and/or other documents to cancel. If you need assistance canceling gap insurance, our Hyundai dealer can help!
Yes, with some caveats. If you’ve paid the balance of your insurance upfront, you’re likely eligible for a refund. Additionally, you can be refunded, if you’re switching to a different gap insurance provider or have paid off your car loan.
Note that the time it takes to receive a refund, if available, depends on the provider. For example, suppose you purchased coverage through your insurance company. In that case, they may apply a credit to your account instead of cutting a check or depositing your refund into your bank account.
A dealership can issue a refund for any additional months of coverage that you already paid.
If you’re in Littleton, Parker, or Castle Rock, Colorado, and need to cancel your gap insurance, McDonald Hyundai can help you. We have an experienced team of insurance experts who can walk you through the process. Contact our team today to learn more about gap insurance refunds and other coverages.
