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So you buy a 5 year Gap Insurance policy, and sell the vehicle after say 2 years. No need for the Gap Insurance anymore, so you phone up to cancel and get some refund back.
Can you cancel? Almost certainly yes
Will you get a refund? Not always
Considering some Gap Insurance policies can be hundreds of pounds then this could be a costly mistake if you did not check this before buying cover.
Your rights to cancel any insurance policy should be clear in the policy terms. Normally you will be provided within a 'cooling off' period after you bought the policy, in which time you can change your mind and be issued a full refund with no fees or penalties.
This is now pretty much standard in the industry, however the length of the 'cooling off' periods can vary. Normally this is between 14 and 30 days.
The 'cooling off' period for a Shortfall.co.uk Gap Insurance policy is 30 days, during which time a full refund is offered with no fees or penalties. This is on the proviso that no claim has been attempted in that time.
It is when you come out of the 'cooling off' period where the picture can change quite dramatically.
Some providers will allow no refund of premium when your cooling off period expires. This used to be quite standard, and is still seen with a number of providers today.
Have 3 years left on a £250 policy and you can say goodbye to your money!!
However, there are many providers who will now allow for a refund of some kind. The common method is a pro rata calculation of unused premium, less a cancellation fee.
With Shortfall.co.uk Gap Insurance products, the cancellations outside the 30 day 'cooling off' period are calculated on a pro rata basis, less a £35 cancellation fee. Again this is subject to no claim having been made on the policy to this point.
Please note that the detail provided regards cancellation of Shortfall.co.uk Gap Insurance products compared to other products in the field. Cancellation rights for other products available on Shortfall.co.uk will vary.