1. What is Gap Insurance Refund?

A Gap Insurance refund is the amount you may be entitled to when cancelling your Gap Insurance policy early. In the UK, providers typically calculate this on a pro-rata basis minus an administration fee.

2. How Does the Calculator Work?

The calculator uses the standard Gap Insurance refund formula:

Where:

• \( Premium \) — Original premium paid for the policy
• \( Unexpired \) — Remaining months of cover
• \( Total \) — Total policy term in months
• \( Fee \) — Administration fee for cancellation

Explanation: The refund is calculated proportionally based on the unused portion of your policy, minus any cancellation fees charged by the provider.

3. Importance of Gap Insurance Refund Calculation

Details: Understanding your potential refund helps when considering whether to cancel your Gap Insurance policy, such as when selling your vehicle or paying off finance early.

4. Using the Calculator

Tips: Enter the original premium in pounds, the remaining months of cover, total policy term in months, and any cancellation fee. All values must be valid (premium > 0, unexpired ≤ total).

5. Frequently Asked Questions (FAQ)

Q1: Is the refund calculation the same for all providers?
A: Most UK providers use this pro-rata method, but some may have different terms - always check your policy documents.

Q2: What's a typical cancellation fee?
A: Fees typically range from £25-£50, but can vary by provider.

Q3: Can I get a full refund if I cancel immediately?
A: Most policies have a 14-30 day cooling off period where you can cancel for a full refund minus any fees.

Q4: Will I always get a refund if I cancel?
A: If the calculated refund amount is less than the cancellation fee, you may not receive any money back.

Q5: How long does it take to receive a refund?
A: Most providers process refunds within 14-28 days of cancellation.