Frequently Asked Questions about GAP Insurance
How do we handle policies on recontracted deals?
The dealership must send in a "voided sale" cancellation form on the original policy and have the customer sign the new policy with the recontracted numbers.
Can policies be handwritten?
NO.
Does this GAP insurance cover the PDI deductible?
YES. The GAP coverage will return an insured's deductible up to $1,000. The "reimbursed" deductible payment is paid back into the vehicle loan. If the insured's claim is paid by a 3rd party liability carrier with no deductible taken, then no deductible will be reimbursed.
Can a customer purchase GAP coverage on a ¾ ton vehicle?
YES. GAP coverage may be purchased on a ¾ ton vehicle as long and it does not exceed 10,000lbs GVW.
Can the dealer's account be credited on GAP cancellations?
NO. All cancellation refund checks are issued by the insurance company unless a letter is attached from the creditor stating that the dealer's reserves have been credited.
If a customer pays off their vehicle loan early, do they get a premium refund?
YES. The customer will need to contact the dealership or the insurance company to request cancellation. The check will be mailed to the customer.
Can a GAP cancellation refund be used as a down payment?
NO. All cancellation refunds are sent to the lienholder, or the customer if the loan is paid in full, by the insurance company.
Can the dealer send in a policy with no signature if we already have one on file?
NO. The policy is a contract between the insurance company and the customer. The customer must sign each policy.
Does the cancellation form always have to be completed?
YES. The cancellation form must be completed by the dealer, not the customer. The policy may not be cancelled over the phone. If the loan is paid in full, the dealership must verify the payoff with the lienholder or obtain a payoff letter from the customer.
Can a customer have more than one policy?
YES. A customer may apply for one policy for each vehicle purchased.
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