Gap Insurance Refund

If you buy a used car from Music City Autoplex, you might want to consider purchasing gap insurance along with your required liability insurance. Find out more about gap insurance and how it might help you get a refund in the long run in Nashville.

What is Gap Insurance?

Your car starts depreciating (i.e. losing its cash value) as soon as you drive your car off the lot to Hendersonville. Gap insurance covers the difference between the value of your car and what you owe on the auto loan should you be in an accident. If you owe more on your car than its cash value and it’s totaled in an accident, you can wind up still owing money on your loan. Gap insurance protects you from this scenario by paying off what you owe on the auto loan.

Gap insurance doesn’t cover bodily injury, but it does cover these mishaps in addition to collisions that might damage your car before you pay off the loan:

• Theft
• Fire
• Vandalism
• Storm damage/natural disasters

How Does Gap Insurance Refund Work?

When you’ve paid off your car in Clarksville, you might be entitled to a gap insurance refund. How does a gap insurance refund work? It depends on how you purchased your gap insurance:

• If you purchased your gap insurance policy all at once in advance, you’ll receive a refund on the unused portion of the payment.
• If you made monthly payments on your gap insurance, you won’t get a refund on past months. If you cancel early in the month you might get a small refund of the unused portion.

If you cancel your gap insurance early, you will need to contact your insurance provider with these papers:

• Gap insurance cancellation forms
• Copy of an odometer statement
• Copy of your auto loan payoff or car title that shows the date you paid off your auto loan.

From there your insurance provider will begin processing your gap insurance refund.

Learn More with the Music City Autoplex Finance Department

From tips on getting the best auto loan interest rates to everything you need to know about auto insurance, the Music City Autoplex finance department is here to answer your questions. Read our car buying tips and enjoy the security of being an informed car shopper.