How to Stop Gap Liability Insurance
- 1). Ask your lender to check to see if gap insurance was mandatory on your finance contract. If it was, ask at what point it can be dropped off. If it was not mandatory, you should decide if you still want to carry it.
- 2). Call your bank's loan department and have them check for a value on your car. They will give you a value based on the condition and mileage of the car. If you find that your value is about the same as or higher than your loan amount, you might consider canceling your gap insurance. You no longer need it.
- 3). Call your gap insurance carrier. As long as your finance contract does not obligate you to continue to carry the gap insurance, and you are satisfied that the value meets or exceeds the loan balance, you can request cancellation of your gap policy. Be sure to get a confirmation that it is being canceled and take note of who you spoke with and the date you called. If you should receive any future billings for gap insurance, you should call and remind your contact of the cancellation. Also, if you paid your gap insurance in advance, you may be due a prorated amount for the portion you will not be using.
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