GAP insurance
12-04-2009, 12:34 PM
#1
GAP insurance
I bought the gap insurance when I bought my truck. I paid off my truck and gmac sent me a letter stating to ask the dealer for a possible refund of my gap insurance. I called the dealer and they stated that being I paid off my truck at full term I didnt get a refund. Anyone here know about this GAP program and if I am entitled to a refund or not. I spoke with a lady that deals with it at the dealership, I fully explained I paid off the truck and have the title in my hands. She said to bring it to her and she would do the paperwork for a refund. On my way to the dealer, she calls and said that being that I paid to term I didnt get a refund. I am curious as to why she didnt tell me this in the first conversation that we had. I cant find any info on the program that states when and if you are entitled to a partial refund if you have never used it.
12-04-2009, 04:53 PM
#4
Yeah, I figured they wouldnt give it up easy. I am going to stop by there next week and get them to show me in writting all the stipulations on it. I know if you cancel it while you are still making your truck payment, you will get a partial refund. So I guess if I did this a couple months ago I would have got some back, that just doesnt make sense to me.
12-04-2009, 04:57 PM
#5
I don't think you will get any refund and here is why. You bought gap insurance for xx number of months. At your admission, you paid off your truck at term, meaning you uses ALL xx number of months of the gap insurance. If you would have paid the truck off early, then you would have been entitled to the remaining months of gap insurance premiums that you had prepaid for but no longer needed since the loan was paid early.
12-04-2009, 05:12 PM
#6
agree with KB. Gap insurance is like this.
You have a $15K truck. Truck only values at $15K. Your trade in doesn't cover your old note. You owe $5K and they give you $2K trade in allowance. So they move numbers and put the other $3K on your new $15K note. You now owe $18K on a $15K truck. Gap insurance covers if your truck burns, or is stolen and distroyed, the $3k difference. When you owe more than it's worth, Gap covers the difference if a full insurance payout is ever needed.
Since you kept the truck through payoff, and didn't pay off the note early, you shouldn't see any refund.
Sorry man.
You have a $15K truck. Truck only values at $15K. Your trade in doesn't cover your old note. You owe $5K and they give you $2K trade in allowance. So they move numbers and put the other $3K on your new $15K note. You now owe $18K on a $15K truck. Gap insurance covers if your truck burns, or is stolen and distroyed, the $3k difference. When you owe more than it's worth, Gap covers the difference if a full insurance payout is ever needed.
Since you kept the truck through payoff, and didn't pay off the note early, you shouldn't see any refund.
Sorry man.
12-04-2009, 05:25 PM
#7
I don't think you will get any refund and here is why. You bought gap insurance for xx number of months. At your admission, you paid off your truck at term, meaning you uses ALL xx number of months of the gap insurance. If you would have paid the truck off early, then you would have been entitled to the remaining months of gap insurance premiums that you had prepaid for but no longer needed since the loan was paid early.
Thanks again.
