Not everyone realizes that if you purchased gap insurance and you sell your vehicle before it is paid off you are entitled to a partial refund. You need to initiate the refund. I have only had one gap insurance company that let me know if I had sold the vehicle I was entitled to get a partial refund.
1. You purchase gap insurance when you buy a vehicle.
2. If you sell/trade the vehicle before you have paid the loan off then you are entitled to a gap insurance refund. The amount will vary based on the remainder of the loan.
3. Obtain an odometer disclosure statement. When you trade your vehicle in at a dealership they will give you the odometer disclosure statement. Save this disclosure.
4. Once the new lender pays off your car you will get a notice from the old lender showing that it was paid off. Save this paperwork.
5. Gather the odometer disclosure statement, the paperwork showing the loan was paid off and your paperwork showing the purchase of the gap insurance.
6. Go back to the dealership where you purchased the vehicle you had the gap insurance on. Tell them you need to cancel your gap insurance. They will get the form, fill it out and fax all your information to the gap insurance company.
7. Wait several weeks and then receive your check in the mail! It is that easy!