If you brought a used or new car, then you might have sold GAP insurance. Usually, GAP insurance is brought from an auto insurance firm or car dealership. In fact, getting GAP insurance from a car dealership is a bit expensive means. In case, the auto insurance provider fails to provide you with GAP insurance, then you can ask for loan pay back coverage. While buying an automobile from a car dealership, the amount for your GAP insurance is generally calculated within the loan amount.
If you get from an auto insurance provider, then the GAP might be added to the current policy. This will increase your insurance cost by $20 to $30 each year.
Thus, prior to buying the GAP insurance, it is vital to acknowledge as what it will cover and what will be the amount. Here, the need for GAP insurance refund calculator arises. This type of calculator is of great help to calculate your GAP insurance refund amount with complete accuracy. If you are planning to buy a new car, then GAP insurance will be a kind of advantageous add-on. In fact, GAP insurance refund covers the entire difference of the car’s value and the amount you owe. Here, the GAP insurance refund calculator will help you to calculate the exact amount that you owe.
For instance, let us consider that your car is used one and the insurance firm is set to pay you only $12,000, but you still owe $18,000, then your GAP insurance will cover the remaining difference of $6,000. However, if you any amount that is more than the car’s worth, then GAP insurance is your resort.
Further, there may be times when you would require refund from your GAP insurance. Here, your initial step should be to cross check that you own a GAP insurance. If you trade or sell your car, then you are eligible for GAP insurance refund. However, to calculate the refund, you first need to check the insurance contract and then make use of the GAP insurance refund calculator to find out the exact amount. After this, you need to find the duration of your loan. Here, subtract the months that are remaining your loan from the loan duration. For instance, if you have a loan length of 30 month and you were able to pay off it in 20 months, then the remaining duration is 10 months. Now, divide your premium by your lease term bvalue. This will help you determine the insurance cost for each month.
Then, you need to multiply the amount of premium with the remaining loan length or duration to determine the refund amount. A GAP insurance refund calculator is highly beneficial, but you need to know the right ways to use it.