End Your Gap Insurance with a Polished Cancellation Letter

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Individuals who wish to cancel a gap insurance policy will need to do so in writing. The letter will then be mailed to the insurance company via the postal service.

This is the best method to contact gap insurance companies and effectively communicate intentions. 

A letter also prevents policy holders from having to talk directly to the representative of a company. Writing a gap insurance cancellation letter can easily be done by following a set of steps.

Review Policy Information

Canceling a gap insurance policy can be done at any time. Gap insurance policies do not have any type of restriction that limits rights to cancel a policy.

Review the information included with the policy to ensure the proper cancellation procedure is used. The next step is to prepare a rough draft of the gap insurance cancellation letter.

Make sure to send any payments that are due if the letter is not ready to send before the monthly premium due date.

The gap insurance company will refund any premium that was overpaid. If the policy has a cash value, then request that the amount be paid by check when sending any premium refunds.

The Salutation

Include a salutation at the end of the letter. This will ensure that there is no question about the intent to cancel the policy.

Include the word “Sincerely” or use “Best Regards” for the salutation. This is the final part of a gap insurance cancellation letter. Make sure to sign the letter under the salutation.

Final Steps

The next step is to create a final letter from the rough draft. This can be done by sending the letter over to a printer or by typing a new letter from the paper. 

Make two copies of the cancellation letter. Make sure to sign one copy and send it to the insurance company. The second letter is for personal records.

Prepare Rough Draft 

A rough draft can be typed in a text editor on a computer or a regular piece of paper. The first thing to state on the rough draft is the date. This needs to placed in the upper left corner of the document.

Write or type the name on the policy and their address below the date. Below the address is the name of the insurer. 

Include the contact person if addressing an agent or company representative. A subject line will go on the next line with the account number.

Opening Paragraph

Begin the opening paragraph by requesting the cancellation of the gap insurance policy. 

Make sure to add a sentence stating that all charges or debits for payment be stopped. The next sentence should state the date when the policy is to be effectively canceled.

Sample 1 – Gap Insurance Cancellation Letter

September 23, 2022

Name on Policy
Address of Policy Holder
City, State, Zip

XYZ Insurance Company
Address of Company
City, State, Zip

ATT: Cancellations

RE: Gap Insurance Policy #

Please consider this letter as a formal request to cancel the referenced gap insurance policy.

Please stop all debits or charges for premium payments. The effective date of policy cancellation is 09/27/2022.

Please send a written confirmation letter to me within 30 days after the cancellation takes effect. Please refund any and all unused portion of my premium.

I look forward to hearing from you.


Name of Policy Holder


Sample 2 – Gap Insurance Cancellation Letter

May 25, 2022

BAC Gap Insurance
ATT: Cancellations Department
143 Gap Insurance Way
Columbia, VA 21061

Re: Cancellation of Policy #3333456

To Whom It May Concern:

This letter is to request you to cancel my gap insurance policy #3333456 effective 05/27/2022.

Please send me a written confirmation of this cancellation within 30 days upon receiving this request, refund the unused portion of my premium and stop charging the premium following the cancellation date. 

Thank you for your time and prompt attention to this letter. 


Luke Jackson
234 Blue Lane
Livingston, NJ 08086

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