Can You Cancel Gap Insurance? Everything You Need to Know
When buying a new or used car, you might be offered Gap Insurance , which can provide critical financial protection if your vehicle is totaled or stolen. However, circumstances can change, leading you to wonder: Can you cancel Gap Insurance ? The answer is yes, and this guide will walk you through the cancellation process, the right timing, and any potential refunds. What Exactly is Gap Insurance? Before discussing how to cancel, let’s recap what Gap Insurance is. Gap Insurance, also known as Guaranteed Asset Protection , helps cover the difference between what you owe on your car loan and your vehicle’s actual cash value if your car is declared a total loss due to theft or a severe accident. Standard car insurance only covers the car’s current market value, which may be lower than what you still owe on your loan. Gap Insurance fills that financial gap to protect you from having to pay out of pocket. When is It a Good Idea to Cancel Gap Insuranc...