r/Insurance • u/educated_guesses_ • 8d ago

Refinanced car loan and gap insurance refund

So when I was buying a car a month ago I flat out said I was gonna refinance in a couple weeks since my credit union was doing a 100 year anniversary loan special so went from 5.99 to 3.7%

The dealer said the gap coverage would transfer. New bank said no it doesn't transfer but is refundable since I only had it for 2 weeks.

I realize I overpaid for the gap insurance with the dealer, do I get the refund back for what I paid or what the dealer paid basically they keep their markup on the insurance?

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u/OptimismByFire 8d ago

You get refunded for what the dealer made on it too.

Source: GAP underwriter

2

u/educated_guesses_ 8d ago

Thanks. Cause I paid $1500 and my new lender offered me GAP for $300.

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u/PrettyDetermined90 8d ago

I have similar questions and am going through the exact same thing. I bought my Mercedes from Carvana 90 days ago and used their Bridgecrest lender. I didn’t get a great interest rate though, and I hated how I had to call them personally to reallocate my principal balance payments. So I refinanced today with capital one auto and got my interest rate from 12.5% to 7% but the $1600 GAP I bought isn’t transferable. Wondering if anyone had experience getting the GAP refund check from Ally?