State Law Guide
If you paid off your loan early, you may be owed a GAP refund.
New Mexico GAP Insurance Refund Guide
Under New Mexico Unfair Practices Act, New Mexico consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Actual damages or $100 (whichever is greater), up to three times actual damages or $300 for willful conduct, plus attorney fees, if a refund refusal is an unfair or deceptive practice (NMSA 1978 § 57-12-10).
Quick Answer
In New Mexico, 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 $10,000.
Paid off your auto loan early in New Mexico?
Check your rights under New Mexico law
Key New Mexico Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| No GAP Waiver Statute | Contract governs | New Mexico has no statute setting GAP waiver refund, fee or free look rules; refund rights come from your waiver contract |
| Unfair Practices Act | Unfair, deceptive or unconscionable practices | If such a practice caused you a loss, you may recover actual damages or $100, whichever is greater; the court may award up to three times actual damages or $300 for willful conduct, and must award attorney fees and costs if you prevail (NMSA 1978 § 57-12-10(B)-(C)) |
| Financial Institutions Division Complaint | Motor Vehicle Sales Finance Act | If you believe the Motor Vehicle Sales Finance Act was violated in your retail installment contract, you may file a written complaint with the director of the Financial Institutions Division (NMSA 1978 § 58-19-5(B)) |
| Not Regulated as Insurance | OSI Bulletin 2018-011 | The Office of Superintendent of Insurance asserts no regulatory authority over GAP waivers purchased as part of a vehicle finance or lease agreement |
No GAP Waiver Statute
Contract governsUnfair Practices Act
Unfair, deceptive or unconscionable practicesFinancial Institutions Division Complaint
Motor Vehicle Sales Finance ActNot Regulated as Insurance
OSI Bulletin 2018-011What New Mexico Law Requires
Your Refund Rights
Under New Mexico Unfair Practices Act, New Mexico 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.
GAP coverage is often refundable after an early payoff, a refinance, or a total loss on which GAP paid no claim — but the contract, state law, and unused coverage determine the amount.
A formal demand letter citing your state's exact statutes is harder to ignore than a generic email.
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Frequently Asked Questions
Do I get a GAP refund if I pay off my car early in New Mexico?
Only if your waiver provides one. New Mexico has no GAP waiver statute, so the refund amount, any fee and any deadline come from your contract's cancellation terms. If a dealer or administrator misrepresents or unfairly refuses a refund the contract gives you, the Unfair Practices Act may apply (NMSA 1978 § 57-12-10).
What if my New Mexico dealer refuses to refund my GAP?
Ask for the refund in writing under your contract's cancellation terms, and file in small claims court if it is refused. If the refusal is an unfair, deceptive or unconscionable practice, the Unfair Practices Act allows actual damages or $100, whichever is greater, up to three times actual damages or $300 if the conduct was willful, and attorney fees if you win (NMSA 1978 § 57-12-10(B)-(C)).
Is there a specific GAP statute in New Mexico?
New Mexico does not have a dedicated GAP waiver statute. The Office of Superintendent of Insurance issued Bulletin 2018-011 with GAP-specific guidance, but it is not law in itself — your enforceable rights are governed by your contract terms and the New Mexico Unfair Practices Act.
Where do I file a complaint about a GAP refund in New Mexico?
File with the New Mexico Attorney General's Consumer Protection Division. For problems with the retail installment contract itself, you can also send a written complaint to the Financial Institutions Division (NMSA 1978 § 58-19-5(B)). The Office of Superintendent of Insurance asserts no authority over GAP waivers (Bulletin 2018-011).
New Mexico 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.
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