Royal Chrysler - Plymouth dodge refund on gap insurance ripoff Oneonta New York

GAP insurance is generally not refundable unless cancelled in the first 30 or 60 days after purchase-differs with each provider but this is standard.

Banker John

Gap insurance is cancelable anytime before the contract is up. You will receive a pro-rated amount back. So, if you traded the car 2 years into a 5 year contract, you will get 3 years of GAP insurance as a refund.

However, if you pay the car for the full term of the loan, you are not entitled to any of the GAP back, as it is an insurance policy. So, if you had GAP insurance on a 5 year loan, and it was paid off in 5 years, you do not get a refund.

my contract doesnot have any dates or time frams for this insuranceon it. my contact said that when the car is pay off that i get a refund on the gap insurance.

No disrespect intended and maybe things are different in Florida or maybe you are familiar with a policy sold on the internet ( I understand they may have different terms) but every GAP policy I've seen sold at a dealership or sold through a bank has a short period for refund eligibility. Extended warranties, life & disability, and other insurance options are indeed prorated.

When you paid off your car, did you receive a letter from the finance company stating you are entitled to refunds for insurance purchased in your contract? The letter would state you are entitled to refunds on Life and Disability insurance, gap insurance or extended service contracts. Was this what took place? Your story isn't very specific, but I have a feeling this is a question of miscommunication or misunderstanding.

Gap insurance is indeed cancellable, but if you carried your contract to the full term, you would not be entitled to a refund. Gap insurance protects for the life of your loan, and if you paid your loan off as per the terms of the contract, you had gap protection for the full term of the contract. You would have used the entire gap policy, so of course, you would not be entitled to a refund. It would be like buying a car, putting collision insurance on it, driving it for four years, then selling it and expecting to get a refund simply because you never had an accident with it.

Insurance is there to protect you, and if you utilize it you are not asked to pay extra- you are simply using the insurance. In this case, it sounds like you had the gap policy, but never needed it. If your loan was five years, and you paid it off in five years, you would not get a refund for gap.

I had 2 gap policies, both times I traded the cars in by the 2nd year, and both times I received a pro-rated refund of the GAP insurance. I was sold these polices thru the dealer (Acura and Toyota). I had no problem collecting the money. All I did was fax the payoff letter I received from the bank on the cars and I got a check in a few weeks.

However, in this case, the last poster said the same thing I did, if you had the car for the full term, you wouldn't be entitled to a refund.

Mistaken identity - vehicle in complaint sold by another dealer - Royal Chrysler of Owego, NY and NOT Royal Chrysler of Oneonta, NY. - Steve Harris Pres. of Oneonta, NY - RCOn @ 607-432-9300