State Law Guide
If you paid off your loan early, you may be owed a GAP refund.
Tennessee GAP Insurance Refund Guide
Under Tennessee Guaranteed Asset Protection Waiver Act of 2008, Tennessee consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Stop orders (including a ban on selling GAP waivers) and fines of up to $500 per violation ($10,000 in total) from the Commissioner of Commerce and Insurance (Tenn. Code § 56-59-108).
Quick Answer
In Tennessee, 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 $25,000.
Paid off your auto loan early in Tennessee?
Check your rights under Tennessee law
Key Tennessee Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Free Look Period | At least 30 days | Full refund of the purchase price if you cancel within the free look and no claims or benefits have been paid (Tenn. Code §§ 56-59-102(6), 56-59-106(a)) |
| Refund After the Free Look | Per the waiver's terms | You may be entitled to the unearned portion of the purchase price unless the waiver provides otherwise; the waiver must disclose how any refund is calculated (Tenn. Code §§ 56-59-105(7), 56-59-106(b)) |
| 90-Day Request Window | Required | Request the refund in writing within 90 days after deciding to cancel or after the loan ends (Tenn. Code § 56-59-106(b)) |
| General Sessions Court | $25,000 | Pursue claims up to $25,000 without an attorney in most counties |
Free Look Period
At least 30 daysRefund After the Free Look
Per the waiver's terms90-Day Request Window
RequiredGeneral Sessions Court
$25,000What Tennessee Law Requires
Your Refund Rights
Under Tennessee Guaranteed Asset Protection Waiver Act of 2008, Tennessee 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 Tennessee?
Often, but your waiver decides. After the free look, Tennessee Code § 56-59-106(b) says you may be entitled to a refund of the unearned portion of the purchase price unless the waiver provides otherwise. Request it in writing within 90 days after you decide to cancel or the loan ends.
What is the free look period for GAP in Tennessee?
At least 30 days (Tenn. Code § 56-59-102(6)). If you cancel within it and no claims have been made or benefits paid, you get a full refund of the purchase price.
What is the Tennessee small claims limit?
Tennessee general sessions courts hear claims up to $25,000, which covers most GAP refund disputes without an attorney. Four counties are an exception: Anderson, Davidson, Hamilton, and Knox cap general sessions small claims at $15,000.
Where do I file a complaint about a GAP refund in Tennessee?
The Tennessee Commissioner of Commerce and Insurance enforces the GAP Waiver Act and can order a stop, ban a seller from offering GAP waivers and impose fines (Tenn. Code § 56-59-108). The Attorney General's Division of Consumer Affairs also takes consumer complaints.
Tennessee 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
See how Tennessee's laws compare to its neighbors and other states:
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Optional letter only if you act · Tennessee Guaranteed Asset Protection Waiver Act of 2008