Complete Guide
GAP Refund After Total Loss
If your car was totaled but you weren't "underwater," GAP didn't pay out. That means you get a refund.
5 min readUpdated January 2026
Key Takeaways
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When GAP Doesn't Pay (But You Still Win)
GAP only pays if you owe *more* than the car is worth.
- Scenario:
- Loan Balance: $15,000
- Car Value (Insurance Payout): $18,000
- GAP Payout: $0 (because insurance covered the whole loan)
Since GAP didn't have to pay a claim, the policy effectively "cancelled" on the date of the loss. You are owed a refund for the remaining months of the contract.
Frequently Asked Questions
What if GAP did pay a claim?
If GAP paid a claim (covered your negative equity), the policy is considered "fully earned" in most states, and you typically do NOT get a refund of the premium.
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