Type what you paid and your dates. You get a rough refund and a letter to send.
Your GAP agreement's cancellation section sets the terms. In California, the code is reported to let you cancel at any time with no fee: a full refund in the first 30 days, then a share by days left.
Sources: Civil Code 2982.12, read November 3, 2026.
How a GAP refund is worked out in California
After the first 30 days, the code is reported to work the refund like this: the GAP charges, times the calendar days from the day it ends to the end of the contract (counting the day it ends), divided by the calendar days in the contract's original term. If the GAP agreement's term is shorter than the loan's, its own term is used.
An example with made-up numbers: $895 of GAP on a 72-month contract signed January 15, 2026, cancelled November 3, 2026: 1,900 of 2,191 days left, so about $776 back.
Sources: Civil Code 2982.12, read November 3, 2026.
We read the code in California Public Law's copy, because the Legislature's own site refuses our reader. Check the Legislature's text, and your contract, before you rely on it.
What ends GAP in California
The code is reported to end a GAP waiver at the earliest of these:
- you cancel it;
- you pay the contract in full;
- the redemption and reinstatement periods run out after a repossession or surrender;
- a total loss or unrecovered theft, once the benefits are applied;
- any earlier event the agreement names.
No refund is reported to be due after a total loss or unrecovered theft if you have received or will receive the GAP benefit.
Who pays, and when
In California, the holder of the contract is reported to have 60 business days from the end of the waiver to pay the refund or to tell the administrator in writing to pay it, and it may use the refund to reduce what you owe unless the contract is paid in full. So the money may go to the loan, not to you. Ask your lender how it applies it.
The company to write to is the one your GAP agreement names, whichever dealer sold it: a Toyota, Honda, Nissan or Hyundai store, or CarMax.
Sources: Civil Code 2982.12, read November 3, 2026.
We read the code in California Public Law's copy, because the Legislature's own site refuses our reader. Check the Legislature's text, and your contract, before you rely on it.
Questions
Can I cancel GAP insurance from the dealer?
Read your GAP agreement's cancellation section first. In California, the code is reported to let you cancel a GAP waiver at any time without penalty. We have only read California's rule, so in another state start with the agreement and your state attorney general.
How much GAP refund will I get?
In California, it is reported to be a full refund in the first 30 days, plus the finance charges on it. After that, it is the GAP charges times the share of days left on the contract. The tool above works it out from your dates.
Is there a fee to cancel GAP?
In California, the code is reported to bar a cancellation fee, termination fee or similar fee on a GAP waiver. Elsewhere, check the agreement.
Do I get a GAP refund if I pay off the loan early?
In California, paying the contract in full is reported to end the waiver, and the same refund rule then applies. Refinancing and trade-ins are not named in that section, so check your agreement.
Do I get a GAP refund after a total loss?
In California, no refund is reported to be due after a total loss or unrecovered theft if you have received or will receive the GAP benefit.
Who do I send the letter to?
The company your GAP agreement names for cancelling. It may not be the dealer, so send the dealer and your lender a copy.
Is GAP from a dealer the same as GAP from my insurance company?
Both cover the gap between what the car is worth and what you owe after a total loss or theft, and California's CARS Act treats a "GAP waiver" and "GAP insurance" as GAP agreements alike. Lenders, credit unions and insurers often offer it for less, so compare the price before you buy.