Gap Insurance Refund
November 16, 2010 Leave a Comment
Getting a GAP insurance policy is a smart move that ensures your interests are safeguarded, in the event your car is written off. This is further heightened by the fact that there is a GAP insurance refund that is given to vehicle owners who choose to sell the car later on. While this is the case, not everyone realizes this and as such, most people do not benefit from it. In most instances, if you sell the vehicle before you have completed paying it off, you will be entitled to receive part of the refund but is up to you to initiate the entire process. It is important to note that most companies will not let you up on this and therefore, it is entirely up to you to learn how to go about getting your refund.
In order to claim this refund, the first thing that you have to do is ensure that you purchase a GAP insurance policy. As stated earlier, if you happen to sell the vehicle or trade it before paying it off, you are entitled to receive a GAP insurance refund. While this is the case, it is important to state that the about paid back will vary in accordance to the amount of loan you have paid and how much you have not paid off. It is always advisable to ensure that you get an Odometer disclosure. This is a statement issued by at the dealership where you bought the car. It is important to ensure that this disclosure is saved by storing it in a safe place until that time when you will need to use it.
Upon completion of payment for the car by the new lender, the older lender sends you a notice that indicates the debt has been paid off. This will come in handy for you and as such, you should proceed to save this paper work as well by storing it in a safe place. Once you have everything in place, make sure that you collect the Odometer disclosure, paper work that shows the loan has been cleared and the papers that indicate you had purchased GAP insurance policy. From here, you should visit the dealership where you bought the GAP insurance and inform them about your intentions to cancel the policy.
In turn, they will write to the GAP insurance letting them know about your intentions to pull out and later on, after a couple of weeks you will receive your check. In essence, it is important to state that getting GAP insurance is a quick and easy process that does not have to boggle your head. While this might be the case, it is always advisable to ensure that you weigh your options carefully before selecting any company that offers this sort of service. However, it is important to note that there are terms tied to getting this refund. For starters, you are supposed to ensure that you pay the car payments for at least the first 2 months. This is the only way you are allowed to request for GAP insurance refund.