Gap Insurance Refund is a pain in the butt to get

[Permanent Temp]

My gap insurance refund is taking forever to come in. I didn't even know that was something I could get until my paid off letter came in for the car. I dug up my old paperwork and found the number for the old insurance company.

My car was purchased from a dealership in a different state than the one I currently reside in and getting the car back there wasn't an option. So the rep told me I would have to contact the dealership. After three days of trying to get a hold of someone the dealership told me what I had to send in and said it would be about 3 weeks. I let 4 weeks elapse since it takes a week for mail to come to me from there.

I called the original insurance company again who told me the policy was still showing as active but that didn't mean that the policy hasn't been cancelled. I told the guy that the dealership said it should be 3 weeks and it had been 4. So he gave me the number to the insurance company that the dealership would have to call.

I call these people and they told me the policy had been cancelled but that it would take an additional 4 weeks to get my check. They said if I didn't receive anything in 4 weeks then I could call them back. I'm at the 4th week. So if I don't see anything from them next week I have to call these guys back. It seems like such a pain in the butt. And its only for like $100 but its my $100 and I'm supposed to get it back.

Anyone else had to deal with this frustration or am I just unlucky?

[Like2Plan]

Permanent Temp,
Can you contact your state insurance commissioner? Maybe you could ask for help getting it resolved.
Question though-might you have been eligible for a refund sooner like the point at which you owed less than what the car is worth? Does your paperwork specify a refund only at the point at which the loan was completely paid off early?

[kimb]

My father had a policy with me as beneficiary. After he passed several years ago, I tried to get the remaining policy build up as a cash out. The Insurance ignored/denied communication, had no records of numerous calls on my part after months/years when the policy had declined to a few hundred dollars.

[Permanent Temp]

After waiting the 4 weeks I contacted the insurance company and they told me to call the dealership. The dealership happened to have the check on their desk and sent it to me that week so I'm all set now finally 8 weeks after the initial cancellation letter.

[ua_guy]

I'm not sure I understand, but I'm glad to hear it sounds like you've got the issue resolved.


A gap insurance policy is written directly between you and the insurer, is it not? Why did the dealership have to get involved? Is it required they act as an agent, or something, on the insurer's behalf?

[eric448503]

You have to stay on top of them. Dealers are notorious for processing these late. Just be a massive pain in the ass with the finance department until it gets done.

[creditcardfree]

We cancelled our gap insurance after paying off our vehicle and I had a similar issue where it seemed the process was like pouring molasses! Ours was with a Honda dealership. I did get the money in the end, too.

[snafu]

Since your state insurance commissioner is paid with your tax dollars, I think you should contact them with the relevant information and ask for their assistance and intervention. It's obvious the dealerships hope by ignoring these claims, you'll go away and they keep the refund. It's so easy to send an e-mail to BBB in that dealership's location and copy to Consumer Affairs. It get's to the point of not even the money, just the attitude of entitlement.

[Permanent Temp]

I'm not sure I understand, but I'm glad to hear it sounds like you've got the issue resolved.


A gap insurance policy is written directly between you and the insurer, is it not? Why did the dealership have to get involved? Is it required they act as an agent, or something, on the insurer's behalf?

In this case the insurance company told me that the dealership has to be involved because I am not in the same state anymore. I don't know what the deal was beyond that. I contacted the dealership that told me 3 weeks. After 3 weeks I called the insurance company they told me to call the dealership, I said that I didn't want to call them again. And they gave me the number to the company that the insurance company would have to call. Those people told me the date the check was processed which was correct. That company told me to call back in 4 weeks.

I waited the 4 weeks and called again, this time the check was on the desk and they verified the address and I finally got my check.