State Law Guide · Updated January 2026
If you paid off your loan early, you're owed a GAP refund. Most people never claim it.
Maryland GAP/VSC Refund Demand Rights
Under Maryland Commercial Law - Consumer Protection, Maryland consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Actual damages plus attorney fees under CPA.
Quick Answer
In Maryland, you're entitled to a pro-rata refund of unused GAP insurance and warranty products when your loan is paid off early. You can sue in Small Claims Court for up to $5,000.
Paid off your auto loan early in Maryland?
Check your rights under Maryland law
Key Maryland Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Consumer Protection Act | Applies | Protection against unfair GAP sales practices |
| Contract Cancellation | Per contract terms | Right to cancel and receive pro-rata refund |
| Pro-Rata Refund | Required | Entitled to unused portion of GAP premium |
| MIA Oversight | Active | File complaints with Maryland Insurance Administration |
Consumer Protection Act
AppliesContract Cancellation
Per contract termsPro-Rata Refund
RequiredMIA Oversight
ActiveWhat Maryland Law Requires
Your Refund Rights
Under Maryland Commercial Law - Consumer Protection, Maryland consumers who pay off auto loans early are entitled to pro-rata refunds on unused GAP insurance and warranty coverage. You're entitled to a pro-rata refund based on unused coverage time.
You already paid for coverage you're no longer using. The dealer and administrator owe you a refund — they just won't send it unless you ask. Upload your contract to see exactly how much.
How It Works
Upload Contract
Upload your loan payoff letter or F&I contract
AI Calculates Refund
Pro-rata refund calculated based on unused coverage
Get Demand Letter
Download a letter with state-specific penalty citations
Get a Demand Letter That Cites Maryland Law
Our tool generates a formal gap/vsc refund demand letter citing Maryland Commercial Law - Consumer Protection and state-specific provisions for maximum leverage.
Demand Letter
State-specific statutory citations
Pro-Rata Calculator
Know exactly what you're owed
Penalty Provisions
Late fees & damages
"Sold my car and didn't think about GAP until I was cleaning out my files. Nine months later, still got $350 back."
— Columbia, MD
$39 to recover up to $530. That's a 13x return.
Frequently Asked Questions
Do I get a GAP refund if I pay off my car early in Maryland?
Yes. Under Maryland Commercial Law § 14-403 and your contract terms, you are entitled to a pro-rata refund of unused GAP coverage when you pay off your loan early.
How do I cancel GAP insurance in Maryland?
Submit a written cancellation request to your dealer or GAP provider. Include proof of loan payoff and reference your contract's cancellation provisions.
What if my Maryland dealer refuses to refund my GAP?
File a complaint with the Maryland Insurance Administration or the Maryland Attorney General Consumer Protection Division. You may also pursue the claim in small claims court.
Where do I file a complaint about a GAP refund in Maryland?
File complaints with the Maryland Insurance Administration (MIA) or the Maryland Attorney General Consumer Protection Division.
Maryland Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
Compare Other States
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Average Maryland recovery: $530 · Based on Maryland Commercial Law - Consumer Protection