What auto consumers need to know about Gap Insurance.

Gap Insurance- pays the difference between what your car insurance company will pay, and what you still owe if the vehicle is totaled or stolen and deemed a total loss. For instance, if your car is totaled and you currently owe $20k however your car insurance gives you fair value of $15k, the negative difference of $5k would be taken care of by your Gap Insurance.  Its important to know that this insurance is only necessary when you owe more than the value of the car.  Sometimes its difficult to know if this is the case because we never know what insurance companies will give us in the event the car is totaled or stolen.  I always say its better to be safe than sorry. However, with that said, as you continue to make payments every month you will indeed reach the break even point where the value exceeds the current loan balance.  Most gap coverages will cover you the entire length of the loan but ask yourself do I really need to have gap this long? The answer is no. is a consumer advocate service that is on a mission to let all auto consumers know that when you do surpass your break even point, it might be time to claim a refund for the prorated portion of coverage you didnt use.  Lets say you purchased gap for 6 years, however you reached your break even point after 3 years, well then you can get a refund for the 3 years you didnt need.  So yes, this protection is very important to have but you only want to keep it for the correct amount of time.  Most consumers keep gap the entire length of the loan because they are unaware of their rights to a refund.  There is tens of millions in unclaimed refunds and all you have to do is apply.  Keep in mind, and this is important, make sure the value of the car is greater than the current loan balance before you submit your claim.  You dont want to put yourself in a position of having to owe money if your car is deemed a total loss. If you would like to get an idea what your refund amount will be, you can find out using the free refund calculator at  If you need assistance with obtaining your refund or have additional questions, please visit  Dont forget to be safe, drive safe.
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