Who gets the money from the cancelation of the extended warranty, Me or my GAP insurance? ?
I was in a car accident that was not my fault. The person at fault did not have insurance and was driving with a canceled driving license. Fortunately, i had uninsured motorist insurance and they will pay part of the loan. The remainder will be paid by my GAP insurance. The loan includes the car, title and taxes, GAP insurance and $2000 in extended warranty. If i cancel the extended warranty will the money go to me or will it go to the GAP insurance? Also there is a $250 deductible for using my uninsured motorist insurance, will the GAP insurance cover that?
Comments
About Author
Copyright © 2008
calipink22 November 30th
No, you’ll have to pay the deductible out of your own pocket. Also uninsured motorist usually only coverages medical and any injuries sustained. Unless you have uninsured motorist property damage. Warranty is usually a fully earned option. Meaning you pay for it, if you don’t use it you don’t get any refund unless you cancel it before your finance term is complete. If your vehicle is a total loss once the check is issued to the finance company that automatically voids your extended warranty, no refund. Also, gap insurance is a waiver signed by yourself and the finance company. Gap insurance isn’t really a payment towards the finance company. It’s an agreement between you and the company stating in the event of a total loss they will waive any additional balance left over from the insurance company.
pickupman82 November 30th
You should be able to cancel "extended warranty" at ANY time for ANY reason prior to it expiring and receive a prorated refund based on time or mileage. The refund will usually go towards the loan. And in most cases the GAP company wants to know how much the refund will be so they can provide a refund minus that amount. They don’t want to pay more than they have to. You shouldnt be making money off of this. In some cases it slips through though.
Add Yours
YOU