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Question on Gap Insurance after loan payoff/balance reduction

elixerin
Established Contributor

Question on Gap Insurance after loan payoff/balance reduction

say you purchase gap insurance on your new vehicle that was mostly financed but is paid down heavily within half a year, does the gap insurance go to waste in this situation in the circumstance of an accident etc, thanks 

2 REPLIES 2
incognitony
Regular Contributor

Re: Question on Gap Insurance after loan payoff/balance reduction

Short answer is yes. See if it has a cancellation policy that gets a prorated refund. 


Message 2 of 3
njcobra10tha
Established Contributor

Re: Question on Gap Insurance after loan payoff/balance reduction

It depends.

In general yes but it depends on the policy there may still be benefits.

 

When I got GAP from DCU they offered other perks like if car is stolen or totalled they give you up to $1,000 towards insurance deductible and $1,000 towards a new loan with them.  Even if you only owe $100 on the car that benefit is still there.  

 

My other loan through Visions FCU has other benefits that are still tangible even if you are right side up.

 

Check the policy and see what it says.

 

Message 3 of 3
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