(800) 253-1482Gap Insurance Refund in Missouri
Summary: Missouri drivers may be eligible for a prorated gap insurance refund if they pay off their loan early, switch insurers, sell, trade, or refinance their vehicle. Refunds depend on the policy cost, coverage term, and unused months. To cancel, contact your provider, complete the required forms, and provide proof of sale, your loan payoff, or refinancing. Dealership refunds require your purchase agreement and updated contact information. Refunds aren’t given after a total loss claim, though partial refunds may apply after voluntary repossession. Fees or loan terms may reduce refunds, so review your policy details. Compare auto insurance quotes when canceling to secure the best coverage moving forward. Estimated Read Time: 5 mins
Table of Contents:
On average, residents of Missouri keep their vehicles a year longer than the other drivers nationally. However, the longer you keep a vehicle, the more you typically benefit from a gap insurance refund.
You may be eligible for a refund on unused gap insurance under certain conditions, but how you cancel your policy is important.
Below is what you need to know about getting a refund when canceling your policy no matter the circumstances.
What Is a Gap Insurance Refund in Missouri?
If you purchase gap insurance in Missouri but you cancel the policy before you use all of your premium, you can receive a refund.
This is common for drivers when selling or trading their vehicle before they’ve paid it off or after they’ve repaid their car loan.
The amount you receive will depend on the value of your loan, how much your vehicle is worth, and the length of your repayment term.
The refund amount depends on factors like your vehicle’s value, loan amount, mileage, and repayment term.
Refund amounts differ by provider, so contact yours to confirm what you’re eligible to receive. Learn more about estimating your gap insurance refund below.
Can You Get a Refund on Unused Gap Insurance in Missouri?
In Missouri, you may qualify for a prorated refund on unused gap insurance if you pay off your loan early, sell, or trade your vehicle.
Cancellations within 30 days typically result in a full refund, but if you wait, your refund is prorated based on unused coverage.
Refunds are calculated based on the remaining months of your policy. To receive a gap insurance refund, provide proof such as a loan payoff notice or sale confirmation, and confirm the process with your insurer.
How to Get a Gap Insurance Refund in Missouri
How you get a gap insurance refund in Missouri can vary depending on the reason you need one, where you receive your coverage, and more. Here’s a breakdown of how to receive reimbursement through a number of scenarios:
Dealerships
To get a refund on gap insurance through your dealership, locate your vehicle purchase agreement or request a copy from the dealership.
Contact the insurance provider offering coverage through your dealer to understand the cancellation process, which may require written notice and varies by carrier.
Ensure your address is up to date for proper delivery of your gap insurance refund check.
If you need continued coverage, secure a new policy before canceling. Once cancellation is initiated, promptly return the required documents.
Use your refund for a new policy or other financial needs, and consider getting a reliable gap insurance quote to save money.
Totaled Vehicle
In Missouri, you may be eligible for a refund on your gap coverage auto insurance if you total your vehicle and never file a claim.
However, if you file a claim, you won’t receive a refund, as your premium will be used to pay off your loan or lease. Contact your insurer after an accident to understand your options and policy details better.
After Payoff
Paying off your car loan early may qualify you for a partial gap insurance refund. Since you’ve used some coverage while the loan was active, the refund will be prorated based on the unused portion.
You’ll need to contact your provider, whether that be your insurance company, your vehicle’s dealership, or your lender.
Voluntary Repossessions
If your vehicle is voluntarily repossessed and you've prepaid gap insurance, you may qualify for a partial refund based on unused coverage.
Policies and cancellation fees vary by carrier, so contact your provider to understand the terms for covering deficiency balances after repossession.
After Selling or Trading
If you sell, trade, or pay off a car with gap insurance, you may qualify for a refund on unused coverage.
For example, canceling a one-year policy after two months could refund ten months of coverage.
Provide a loan payoff notice if applicable, and wait until after the car is legally sold or traded before canceling your policy.
Refinancing Your Auto Loan
Refinancing to a shorter loan term with a lower interest rate can help pay off your car faster, possibly making gap insurance unnecessary.
Check your loan details, and if coverage is no longer needed, contact your insurer for a gap insurance refund on unused premiums.
How to Cancel Gap Insurance in Missouri
To cancel your gap insurance, contact your provider to request cancellation and check for refund eligibility.
Provide your name, address, and VIN in your request, either online or in writing.
For online cancellations, ensure you receive email confirmation with refund details.
If you’re submitting a written request, send a formal letter with the required information.
Keep all related documents, such as policy numbers and refund receipts, and confirm your refund matches unused coverage after any fees. Updating your contact info will help prevent delays.
Note: Canceling your coverage may be right for your needs but always be sure to have a new policy active before doing so to avoid gaps in your protection.
How to Calculate Gap Insurance Refund in Missouri
To calculate your estimated gap insurance refund, first, divide the total amount you paid by the number of months your policy covers. This gives you the cost per month. Then, multiply that amount by the number of months left on your policy.
For example, if you paid $700 for a 24-month policy ($29.17 per month) and canceled after 12 months, you could get back $350.04 (12 months x $29.17).
Cancellation fees or car loan rules may still apply and reduce your gap insurance refund.
In Missouri, you could receive a full refund if you cancel shortly after purchasing. Be sure to check our policy's details to best understand the terms of your coverage.
Need a Gap Insurance Refund? Compare Quotes in Missouri
When canceling your coverage, it’s essential to find a new policy that keeps you protected. Comparing quotes from top-rated carriers helps Missouri drivers get the best coverage without overpaying.
Use our car insurance tool below or consult an agent to find personalized protection at the lowest cost:
