Canceling Ally Auto Gap Insurance: Step-By-Step Guide

Guaranteed Asset Protection (GAP) insurance is a type of coverage offered by Ally Auto that protects customers in the event of a total loss of their vehicle. If a customer's vehicle is totalled in an accident, their insurance may not cover the full amount owed on the vehicle. GAP insurance helps cover the amount between the cash value of the vehicle and the outstanding balance. To cancel your GAP insurance with Ally Auto, you can contact your selling dealer or call Ally Auto at 1-800-631-5590. If you cancel within 60 days of the start of your contract and have not made any claims, you may be eligible for a full refund. After 60 days, the refund amount will be prorated based on the days or miles of coverage remaining, whichever is least. There may also be a $50 administration fee.

Cancelling within 60 days

If you want to cancel your Ally Auto GAP insurance within 60 days of purchasing it, you can do so by calling 1-800-631-5590. You will be able to receive a full refund if you have not made any claims during that time. Be sure to review the cancellation terms of your contract for more information.

When you call, you will need to provide some information about your policy, such as the start date of your contract and whether you have made any claims. You may also be asked for your name, ZIP code, and Vehicle Identification Number (VIN).

It is important to note that if you cancel your GAP insurance within the first 60 days, you will only be eligible for a full refund if you have not made any claims. If you have made any claims during that time, your refund will be prorated, meaning it will be based on the number of days or miles of coverage remaining on your policy, whichever is least.

In addition, there may be an administrative fee of $50 associated with cancelling your policy. This fee will be deducted from your refund. Keep in mind that paid claims prior to cancellation will also be deducted from your refund, as required by state regulation or law.

By following these steps, you can effectively cancel your Ally Auto GAP insurance within the first 60 days of purchasing it and receive the appropriate refund.

Cancelling after 60 days

If you want to cancel your Ally Auto GAP insurance after 60 days, you can do so by calling Ally at 1-800-631-5590. Note that if you cancel after 60 days, you will not be eligible for a full refund, even if you haven't made any claims. Instead, your refund amount will be prorated, based on the days or miles of coverage remaining, whichever is least. There may also be a $50 administration fee.

When you call to cancel, be sure to have your contract details handy, as well as any other relevant information, such as whether you have made any claims that would need to be deducted from your refund. You may also want to refer to the cancellation terms of your specific contract for more information.

It's important to note that the process for cancelling your GAP insurance may vary depending on your specific contract and situation. For example, if you sell your vehicle, you may need to take additional steps to transfer or cancel your contract. Additionally, state laws may impact the process and your eligibility for a refund.

If you have any questions or concerns about cancelling your Ally Auto GAP insurance after 60 days, it's recommended that you contact Ally directly for more information and to ensure you are following the correct procedure.

Full refund criteria

To cancel your vehicle service contract or GAP addendum, you can call Ally at 1-800-631-5590. If you are looking for a full refund on your GAP insurance, you must cancel within 60 days of the start of your contract and not have made any claims. If you have made a claim or it is past the 60-day mark, your refund will be prorated. A small administrative fee may also apply.

Ally has a policy that instructs its dealer partners not to handle GAP refunds directly with customers. Instead, dealers have 15 calendar days to review their records and inform the finance source if the GAP refund was already remitted and used toward a down payment on a new transaction or if the GAP contract was previously canceled at the customer's request. If the dealer fails to respond within 15 days, Ally will debit the dealer's reserve account for the refund amount and a $10 administrative fee.

State laws vary on how GAP refunds are regulated. Nine states require providers to return unearned portions of GAP waivers or insurance, including Alabama, Colorado, Indiana, Iowa, Maryland, Massachusetts, Oklahoma, Oregon, and South Carolina. However, many state laws do not address the GAP refund process at all.

Partial refund calculation

To calculate a partial refund for your gap insurance, you need to determine how much of your coverage you have used. If you have paid a lump sum for an annual policy, you can divide the total cost by 12 to get the monthly premium. Multiply this figure by the number of months left on your policy to get the refund amount. For example, if you paid $60 for an annual policy and cancel after 4 months, you would multiply $5 ($60/12) by 8, which equals $40.

If you pay monthly, you will not get a refund, as you have only paid for the coverage you have received so far.

Ally offers a full refund for its Premier Protection coverage if you haven't made any claims and cancel within 60 days of the start of your contract. After this period, the refund amount will be based on the days or miles of coverage remaining, whichever is least. There may also be a $50 administration fee.

Administrative fees

To cancel your vehicle service contract or GAP addendum, you can call Ally at 1-800-631-5590. If you cancel within 60 days of the start of your contract and haven't filed any claims, you can receive a full refund. If you've made claims or it's been more than 60 days, your refund will be prorated based on the days or miles of coverage remaining, whichever is least.

There is also an administrative fee that may apply when cancelling your contract. This fee is typically $50, but it's important to refer to the cancellation terms of your specific Ally Premier Protection contract for more detailed information.

In addition to the administrative fee, any paid claims prior to cancellation will be deducted from your refund where applicable or as required by state regulation or law.

If you sell your vehicle, you can transfer your vehicle service contract to the new owner by filling out the transfer form and paying the administrative fee. Remember to provide the new owner with your vehicle maintenance records, which will be useful for them if they need to file a claim in the future.

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