Did you know that BMW stands for “Bayerische Motoren Werke?”
Luckily you won’t have to pronounce that when you’re canceling GAP Insurance from BMW. Instead, we’ll tell you what you do need to know when you want to cancel your GAP policy.
Make Sure You’re Canceling The Right Policy
GAP insurance only takes effect after your car is totaled or stolen and when there’s a difference between your BMW’s current market value and the amount you owe on your auto loan. BMW Ultimate Protection GAP waives up to $50,000 due to total loss damages. It also covers up to 150% of the car’s MSRP.
It’s important to note that GAP insurance is an optional coverage on your car, while auto insurance is a legal requirement in every U.S. state (except New Hampshire, where you’ll still have to prove that you meet their financial responsibility requirements).
Canceling BMW GAP Insurance
It’s common for car brands to partner with third-party providers to offer GAP insurance. From our research, it seems BMW does offer its own GAP coverage, with Safe-Guard International Products serving as the administrator.
While we tried to get in touch with BMW financial representatives to provide more information on other possible partners, they were unavailable for comment. What we do know is that GAP policies vary by BMW Retailer, lender, and the state where you purchase the car. So, if you live in a state where BMW doesn’t offer its Ultimate Protection Program GAP, local BMW dealers might sell a different GAP policy. For these reasons, canceling GAP insurance can look a little different depending on where you bought your BMW.
To cancel your BMW GAP insurance, start by contacting the dealership where you purchased the policy. If you can’t get in touch with your dealership or you just want an alternative point of contact, you may be able to cancel BMW Ultimate Protection GAP by contacting Safe-Guard Products. We’ve included their contact information below.
Safe-Guard Products International, LLC
Two Concourse Parkway, Suite 500
Atlanta, GA 30328
When to Cancel Your GAP Insurance:
Canceling BMW GAP Insurance might be a smart choice when you have:
1. Paid off the loan on your BMW
2. Purchased a different GAP policy with similar coverage
3. Made a sizeable down payment on the car and paid off a portion of the loan
4. Financial for shorter loan terms (since you’ll pay down the loan faster than you would with a longer loan term)
5. Paid down a significant portion of your original loan and not refinanced
6. An older car with lower mileage
7. Purchased a vehicle with a low depreciation rate (such as a Toyota Tacoma and certain Ford pickup truck models)
If your loan term is longer than 84 months, you may also want to cancel your GAP insurance as BMW’s GAP coverage does not extend beyond this period of time.
Canceling in these situations could be beneficial because they represent scenarios in which GAP coverage won’t be as useful as it once was.
For example, if you just bought your BMW and have a high loan balance on the car, GAP coverage would come in handy. On the flip side, it wouldn’t come in handy if you’ve paid off the loan because even if your car is only worth a few thousand dollars, there’s no loan balance to pay, regardless of how much you get from the auto insurance claim.
Your BMW GAP coverage and your extended warranty are not the same thing. To cancel one (or both) of these coverages, contact the dealership where you purchased the insurance or warranty. These coverages can be provided by BMW or by third-party providers.
When you cancel your GAP insurance, you lose the coverage and, in some cases, can get a refund for the portion of the policy you didn’t use (provided you paid up front).
It may be smart to cancel your GAP insurance, but it depends on the age of your car, the car’s current market value, and the amount remaining on your auto loan.
The amount of your GAP insurance refund depends on how much of your policy remains unused at the time of cancellation. For example, if you cancel 3 years into a 6-year policy you paid $600 for, you can expect to get back around $300. There may also be a processing or cancelation fee (often $50).
You can cancel your BMW GAP insurance anytime. Just be aware that you’ll lose coverage as soon as you cancel, and if your car is stolen or totaled, you’ll still be responsible for paying off the entire loan balance.
The time it takes to get a refund after canceling your GAP insurance can vary. Generally, you can expect to wait between 4 – 6 weeks for your GAP insurance refund to arrive.
Canceling your GAP insurance will not impact your credit score.
BMW GAP insurance covers up to $1,000 of your insurance deductible. That means that as long as your auto insurance deductible is less than $1,000, your BMW GAP coverage will pay for the deductible when the GAP coverage kicks in.
GAP insurance is usually worthwhile for the first few years after a new car purchase. During this time, the vehicle depreciates quickly, so your loan may be more than the car’s actual value. Regular car insurance without GAP coverage only insures the vehicle’s current market value.
BMW USA. “Guaranteed Auto Protection.” BMW, Dec. 2021. Accessed Dec. 2022.
BMW Seattle. “GAP Insurance.” Accessed Dec. 2022.
BMW of Alexandria. “Product Cancellation FAQs” Accessed Dec. 2022.
American Family Insurance. “Can I Cancel Gap Insurance From a Dealership?” Accessed Dec. 2022.
Car Pro. “These Vehicles Hold Their Value The Most and Least.” 23 June 2022. Accessed Dec. 2022.
Jedynak, Tomasz, and Bogna Szyk. “Car Depreciation Calculator.” Omni Calculator, 26 Dec. 2022. Accessed Dec. 2022.
Maya W is a copywriter. She has worked in the editorial and copywriting space for multiple years and loves getting creative with the vision for her projects. Her highlights include co-founding FEM&M magazine, an intersectional feminist publication, and receiving honors for her original Creative Writing thesis from Franklin & Marshall College.