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New Jersey State Guide

New Jersey GAP Insurance Refund: Automatic Under N.J. Stat. §17:16BB-6

Last reviewed: August 2026

Quick answer: New Jersey law (N.J. Stat. §17:16BB-6, as amended 2019) requires a pro-rata refund of unearned GAP within 60 days of early termination — automatically, without a borrower request. Voluntary mid-term cancellation may carry a fee up to $50.

New Jersey requires your refund automatically within 60 days — no request needed.

If your loan ended early and the refund never arrived, your lender is overdue. You can still demand it in writing.

New to GAP refunds? Learn how a gap insurance refund works, and see how long does a gap insurance refund take in your state.

The statute

N.J. Stat. §17:16BB-6 (as amended 2019)

Pro-rata refund of unearned GAP within 60 days of early termination, without a borrower request. Voluntary mid-term cancellation may carry a fee up to $50.

The 60-day automatic refund

New Jersey is an automatic-refund state: when your loan ends early, the pro-rata refund of your unearned GAP is due within 60 days of early termination — no request needed. Voluntary mid-term cancellation may carry a fee up to $50.

Refund trigger events

  • Early payoff / prepayment
  • Refinance
  • Sale or trade-in
  • Total loss
  • Repossession (early termination)
  • Voluntary cancellation

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If your refund is denied or ignored

Lender or finance company won't refund

File a complaint with the New Jersey Department of Banking & Insurance at nj.gov/dobi. If your lender is a national bank, complaints go to the federal CFPB at consumerfinance.gov/complaint.

And if we prepared and submitted your claim, our Service-Fee Refund Guarantee applies: a formal denial or no response after our full follow-up process means your $79 comes back.

Frequently asked questions

Is the New Jersey GAP refund automatic?

Yes. Under N.J. Stat. §17:16BB-6 (as amended 2019), the pro-rata refund of unearned GAP is due within 60 days of early termination, without a borrower request.

Can the lender charge a cancellation fee in New Jersey?

Voluntary mid-term cancellation may carry a fee up to $50.

Ready to check your New Jersey refund?

Our free calculator applies New Jersey rules to your contract details and estimates your refund in about two minutes.

Important Notice

This page is general information about New Jersey law, not legal advice. GapInsuranceRefunds.com is a document-preparation and claim-assistance service, not a law firm. Refund amounts depend on your contract terms, dates, and individual circumstances. Primary authority: N.J. Stat. §17:16BB-6 (as amended 2019).

See how your state compares: GAP refund laws in all 50 states.