Gap insurance only pays if you total (not just wreck) but total your vehicle AND the ACV (actual cash value) of the vehicle is less than your loan amount - thus a gap.
The insurance company then pays the difference between the ACV amount and the loan amount to the lender (not to you )- thus nothing out of your pocket but your deductible.
Hope this helps.

 

had an 04 gmc ex cab. traded it in.. got a check in mail for about 100-175 dont remember. for the gap refund.. this was back in 05.. maybe i got some money back because of the trade.. idk.. and didnt ask questions. or it might have been some extended warrenty??? how esle would i get a check.. i thought it was the gap..

 

since you traded the truck - the policy is no longer valid - so you got a refund on the monies you paid for the Gap portion of the remainder of the policy. ie..if you paid for 6 months or a year in advance - they would refund you the difference - hope that makes sense

 

ive been in the car biz for a lil over 3 years now, you will NOT recieve any refund if you have paid the vehicle off.. but however if you traded the vehicle in and not paid it off then you could possibly get a refund back on (gap,warr. life inc policy, tire and wheel exc.) depending on all of what you bought at time of purchase

 

^^^what he said., lol...