07 May How do refunds work for extended warranties and/or gap insurance?
How Refunds work
Well 99% of all cancellations are factored using the theory of proration. Essentially you will receive a prorated amount for the time and miles you didnt use. For example, if you originally purchased a 6 year, 100k mile extended warranty for $2k, and lets say you drove it for 3 years and 50k miles, well as you probably guessed you would receive a 50% refund totaling $1k in this example. Now keep in mind, the proration is based off two things:
1. Years remaining
2. Miles driven
Typically you will receive a refund for the lessor of the two scenarios-Go figure!
To calculate your refund, please use our free refund calculator at calculatemyrefund.com
Now every state is different so you will have to check the terms of your contract but there is typically a $25-$50 cancellation fee when processed. This is regulated in some states to protect the consumer so check with your states Department of Insurance.
Even if you no longer own the vehicle, you can still claim a refund so don’t delay. It never hurts to check your eligibility. In some cases, you might be able to use the date you actually sold the vehicle as the proration factor.
You can get all your questions answered at mywarrantyrefund.com