Delaney Simchuk, Car Insurance Writer
@delaney_simchuk
Yes, you can cancel gap insurance from a dealership by contacting the dealer or the insurance company the dealership works with and requesting to cancel your policy. Some dealers include a cancellation period with the purchase of gap insurance, during which you can cancel and receive a full refund. If your car is financed and you are required to have gap insurance, make sure you have a replacement gap insurance policy in effect before canceling.
You can usually get the best rates for gap insurance by purchasing it through your auto insurer rather than from a dealership. Gap insurance from dealerships is more expensive partly because it is added to your monthly car payments, so you will pay interest on it.
How to Cancel Gap Insurance From a Dealership
- Check your contract. Gap insurance may be required as part of your car loan or lease contract. If it is required, make sure to purchase a new gap insurance policy elsewhere before canceling this one.
Additionally, your gap insurance contract should include which insurance provider the dealership works with. If you cannot find your contract, you should contact the dealership directly. - Gather your information. Before going to cancel your policy, you’ll need to gather your policy details, your loan or lease documents, and potentially your new gap insurance policy information.
- Contact your dealership or their insurance provider. When you contact your dealership or the insurance company they work with, ask what the steps for canceling your gap insurance policy are. They may require you to fill out a gap insurance cancellation form.
- Make any necessary payments. You will still need to make any overdue payments, including any interest that may have built up until your cancellation. There may also be a cancellation fee to stop gap insurance.
If you are canceling your policy within 30 days of taking it out, you may be able to get a full gap insurance refund. Receiving the money can take anywhere from 4-6 weeks. You may also be paid a pro-rated refund based on how long you had your policy.
To learn more, check out WalletHub’s guide to gap insurance.
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You can cancel gap insurance by gathering your policy details and contacting your gap insurance provider directly. To cancel gap insurance on a leased vehicle, you may need to also show proof of a new gap insurance policy, depending on the details of your contract.
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You can get a gap insurance refund for unused premiums if you paid for coverage up front and then canceled it early. If you are cancelling within 30 days after the policy’s start date, you might be able to get a full refund, minus any cancellation fees. In other cases, only a partial refund may be possible. The details will depend on your policy and your state’s laws.
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