Nissan is one of the most popular car brands in the United States, selling hundreds of thousands of vehicles each year to drivers across the country.
If you’re a Nissan owner, you may have also purchased a Nissan GAP insurance policy to help protect you from financial losses. However, unlike liability insurance, which is almost always a necessity (both to protect you and to comply with state laws), there may come a time when you no longer need GAP coverage.
We’ll share more info on GAP insurance and tell you when and how to cancel this coverage.
The quick and easy way to cancel Nissan GAP insurance
When it’s time to cancel GAP, the first thing you’ll want to do is locate your original GAP agreement. The GAP agreement will clearly lay out the exact terms of your GAP policy, including any special instructions on how to cancel it.
Since GAP insurance can vary by lender or dealership, it’s important to refer to the information on your specific GAP agreement.
Our online research shows that Nation Safe Drivers (NSD) partners with Nissan to provide GAP coverage on vehicles that are purchased. Customers who lease their vehicle through Nissan Motor Acceptance Company (NMAC) cannot purchase GAP insurance, though a complimentary GAP waiver (which effectively provides the same protection as GAP by canceling the debt) is included in the lease.
The easiest way to cancel your GAP insurance is to submit a cancellation request to the dealership where you purchased your Nissan. You can call or visit your dealership in person, but if you prefer, you can fill out NSD’s GAP cancellation form and send it to both your dealership and NSD.
You can mail the form to NSD at:
800 Yamato Road, Suite #100
Boca Raton, FL 33431
Attn: Cancellation Department
If you have questions, contact your dealer directly or call NSD at 888-684-9327.
What does GAP insurance do, anyway?
GAP insurance, which stands for Guaranteed Auto Protection or Guaranteed Asset Protection, can help protect you from financial losses.
Though GAP is often referred to as insurance, it shouldn’t be confused with auto insurance coverages, like liability, comprehensive, or collision insurance.
GAP insurance is designed to pay off your loan balance if your auto insurance payout doesn’t cover the full amount following the theft or total loss of your car.
The easiest way to understand GAP insurance is to look at a real-life example.
Say you bought a Nissan Titan for $45,000. You put down $5,000 when you purchased the car and financed $40,000. A couple of weeks later, you loan your Nissan to a friend, who gets into a nasty accident.
Your insurance company tells you the damage is extensive and deems the vehicle a total loss. They write you a check for the market value of the pickup before the accident – $36,000 due to depreciation – which you use to pay off most of the loan balance. Unfortunately, the insurance payout fell $4,000 shy of the full loan amount. Thankfully, you have GAP insurance, which pays for the remaining amount.
When is it smart to cancel my GAP Nissan GAP insurance?
Canceling your Nissan GAP insurance is sensible when you no longer need the coverage. How do you know when you no longer need GAP? Here’s a list of situations that can signal it’s time to cancel your GAP insurance.
1. You sold your Nissan
2. You traded your Nissan in for a new vehicle (in this case, you’ll likely want coverage for your new vehicle)
3. You purchased a different GAP policy and no longer need the old one
4. You paid off your car loan
5. Your car’s value is much higher than your loan balance (e.g., your car is worth $10,000 and your loan balance is $2,000).
Nissan GAP insurance typically lasts for the full length of your vehicle loan term up to 84 months. However, you may find GAP insurance is no longer necessary after 4 – 5 years.
If you have an auto loan, you can still remove your GAP insurance from your car by contacting the dealership and canceling your GAP coverage.
If you cancel GAP coverage within the first 60 days after purchase, you should receive a full refund. For cancellations made after the first 60 days, prepaid GAP insurance premiums will be refunded based on the unused portion of the policy.
GAP insurance is an optional, additional coverage on your Nissan. You can cancel your GAP insurance at any time unless your lender requires you to maintain GAP coverage as part of your loan agreement.
GAP insurance doesn’t cover a blown engine (or any other mechanical, electrical, or cosmetic problems with your car).
You should keep your Nissan GAP coverage if there’s any risk that you might end up with a leftover loan balance following the theft of your car or a total loss. An easy way to determine that risk is to consider your car’s market value relative to your loan balance.
The higher the cash value and the lower the loan balance, the less likely you are to need GAP.
GAP insurance will often pay the full amount of your remaining loan balance, but only after your auto insurance pays out the claim first.
For example, if you have $35,000 remaining on your auto loan but your car’s actual cash value is $30,000, your auto insurance will pay out $30,000 following a covered total loss. After that, you can file a claim on your GAP insurance to waive the remaining $5,000 loan balance.
If you don’t use your GAP insurance, your coverage will end on the last day your policy is valid, when you pay off your loan, or if you cancel your policy. Most people don’t end up using their GAP insurance because most people won’t experience a total loss or the theft of their vehicle.
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Nissan. “Guaranteed Asset Protection (GAP) Plan.” Nissan USA, 2019. Accessed Jan. 2023.
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NSD Motor Club Services. “Gap Protection Program.” 2013.
Nissan Finance. “Do I have gap insurance?” 11 Aug. 2021. Accessed Jan. 2023.
Carson Nissan. “Gap Insurance.” Accessed Jan. 2023.
AutoNation Nissan Miami. “AutoNation Protection Plans.” Accessed Jan. 2023.
Nation Safe Drivers. “Ancillary Products Resource Portal.” Accessed Jan. 2023.
Jonathan is a writer with over 10 years of experience and a former insurance agent. Jonathan’s focus is to simplify personal finance and help equip you with the tools you need to make smart financial decisions. Despite the criticisms, he remains committed to driving a manual transmission and prides himself on smooth shifting, even in rush-hour traffic.