Gap insurance is an optional car insurance coverage that pays for the "gap" between what a car is worth and what the owner owes on their auto loan should the vehicle be totaled or stolen. Standard collision and comprehensive insurance policies only reimburse the value of the totaled car, not any balance owed.

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Gap insurance is typically sold to you from your car dealership or loan provider and typically costs between $400 - $900. This is usually paid in a lump sum at the beginning of your loan. If a vehicle is paid off early, the car is traded in prior to the end of the loan agreement or the vehicle is refinanced, you would be owed a refund for unearned premiums. The earlier the loan was paid off, the bigger the refund you are due. 

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Our lawyers believe these refunds are not being issued and consumers are being cheated. We plan to file a class action lawsuit to hold them accountable.