1. What is Gap Insurance Rebate?

A Gap Insurance rebate is a partial refund of your premium when you cancel your Gap Insurance policy before its expiration date. The rebate amount depends on how much time is left on your policy.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Premium \) — Original premium paid for the policy (in dollars)
• \( Remaining\ Term \) — Number of months left on the policy
• \( Total\ Term \) — Original policy term in months

Explanation: The rebate is calculated proportionally based on the unused portion of your policy.

3. Importance of Gap Insurance Rebate

Details: Understanding your potential rebate helps when considering canceling or switching Gap Insurance policies, ensuring you receive fair compensation for unused coverage.

4. Using the Calculator

Tips: Enter the original premium amount in dollars, remaining term in months, and total term in months. All values must be valid (premium > 0, remaining term ≤ total term).

5. Frequently Asked Questions (FAQ)

Q1: When am I eligible for a Gap Insurance rebate?
A: You're typically eligible when you cancel your policy early, sell your vehicle, or pay off your loan early.

Q2: Are there any cancellation fees?
A: Some insurers may charge a small cancellation fee, which would be deducted from your rebate amount.

Q3: How long does it take to receive my rebate?
A: Most insurers process rebates within 4-6 weeks after cancellation.

Q4: Is the rebate taxable?
A: Generally no, as it's considered a return of premium rather than income.

Q5: Can I get a full refund if I just bought the policy?
A: Many insurers offer a free-look period (typically 30 days) where you can cancel for a full refund.