When you buy a new car to traverse the Peoria roads, you will of course need to get insurance. With all of the different kinds of coverage, it can be easy to overlook a specific kind of insurance called gap insurance. Gap insurance covers the “gap” in any of your car’s finances and a gap insurance refund can even get you a little bit of money back depending on some variables. The finance department at Mike Murphy Ford will break down the basics of Gap insurance and explain just how a gap insurance refund works.
Gap insurance stands for Guaranteed Asset Protection and also covers the “gap” in any of your auto finances. Gap insurance covers the difference between the car’s worth and the amount you still owe on the car.
Let’s use an example to help break down gap insurance. Let’s say a East Peoria driver got into an accident with their car. Their car was worth $10,000, but the driver still owes the financing company $15,000. The driver’s insurance company pays out the $10,000 to cover the cash value of the car but doesn’t cover the remaining $5,000 the driver owes the financing company. Even though the driver is without a car, they still owe money to the financing company. Gap insurance comes to the rescue by paying the difference of the $5,000. Mike Murphy Ford can help you answer any uncertainties about your car and it’s worth with our payment calculator.
Many dealers offer standard gap insurance to cover Pekin drivers in the case of an accident. When you pay off your car, you may be entitled to some gap insurance money in a gap insurance refund. Here is how a gap insurance refund will work depending on how you pay off your auto loan:
If you decide to cancel your gap insurance, then the process is actually quite simple. You just need to be sure that you all the necessary paperwork ready at hand to show your gap insurance provider. Here is the paperwork you will need:
Once you submit this paperwork, you should be entitled to a refund. The amount of the refund will depend on how much of the policy that was left and unused.
Now that you know how a gap insurance refund works, our finance team can help you see if you are eligible for any refunds. We’re located in Morton, but you can visit Mike Murphy Ford online or contact us to talk to the finance team or apply for financing.
If you want one of the top pickup trucks for your Peoria travels, there’s no better place to turn than the Ford Ranger trim levels. This truck is known for its capability and versatility, and there are three feature-loaded options for 2021. So whether you want a budget-friendly powerhouse or a well-appointed truck with…
If you’ve seen the 2021 Ford Escape on Peoria streets, you know that it’s a sleek head-turner. Just wait until you see the Ford Escape inside! You’ll find sophisticated Ford Escape interior colors in a spacious cabin with a clever design that makes plenty of room for five passengers and their cargo. Add the…
After checking out the strong Ford F-150 towing specs, have you determined that this is the right truck for your Peoria job sites and weekend adventures? Before you visit Mike Murphy Ford to see our new F-150 inventory, there’s one last exciting step to take: choosing your Ford F-150 color! Whether your personal aesthetic is sporty, rugged,…