Can i cancel the gap insurance from the dealer if you have insurance on it?

Answer 1

Usually you can cancel the Gap insurance anytime you want. You should be refunded money too depending on when you purchased it. Gap Insurance has nothing to do with Auto Insurance. Gap Insurance is just something that you purchase "usually from the dealer" to protect you if your upside down in your loan.

Say you owe $5,000 on your vehicle, but it's only worth $3,000. If you have an accident and it's totaled out. Your insurance company is going to give you only what it's worth. So you would get $3,000 from your insurance company. The Gap insurance would cover the "GAP" between what is owed and what you got from the insurance company.

Because your still going to owe the bank another $2,000 for a vehicle that is totaled out. Gap insurance can sometimes be difficult to cancel, and they sometimes they will give you a hard time about it.. But just read the paperwork that you got when you purchased your vehicle, usually it tells you on there how to cancel and if there are any fees involved.

Just keep in mind that Gap Insurance is not Auto Insurance, so you would need to have Auto Insurance regardless if you have the Gap Insurance.

Good Luck!