1. What is Gap Insurance?

Gap insurance covers the difference between what you owe on your vehicle and its actual cash value if it's totaled or stolen. In Florida, you may be eligible for a refund if you cancel your policy early.

2. How Does the Calculator Work?

The calculator uses the pro-rated refund formula:

Where:

• \( Premium \) — Total premium paid for the gap insurance policy
• \( Remaining\ Term \) — Months left in your policy term
• \( Total\ Term \) — Original length of your policy in months

Explanation: The equation calculates a pro-rated refund based on the unused portion of your gap insurance policy.

3. Importance of Gap Insurance Refund

Details: When you sell or trade in your vehicle, or pay off your loan early, you may be eligible for a refund of your unused gap insurance premium. This calculator helps estimate that amount.

4. Using the Calculator

Tips: Enter your total gap insurance premium in dollars, the remaining term in months, and the original total term in months. All values must be positive numbers, and remaining term cannot exceed total term.

5. Frequently Asked Questions (FAQ)

Q1: Is gap insurance refundable in Florida?
A: Yes, Florida law typically requires insurers to provide pro-rated refunds for unused gap insurance when a policy is canceled early.

Q2: How accurate is this estimate?
A: This provides a basic estimate. Actual refunds may vary based on your specific policy terms and any administrative fees.

Q3: When should I request a gap insurance refund?
A: Request a refund when you pay off your auto loan early, trade in your vehicle, or if your car is totaled and the claim is settled.

Q4: Are there any fees deducted from the refund?
A: Some insurers may charge a small cancellation fee, but this varies by company. Check your policy details.

Q5: How long does it take to get a refund?
A: Most insurers process refunds within 30 days of cancellation request.