Many motorists are taking up the opportunity to get GAP insurance upon the purchase of a new vehicle; even if it’s a used car. GAP Insurance is a product just as popular and sometimes more desired than a car warranty. So why should car owners consider this insurance cover?
Nearly half a million cars are written off each year through accidents and around 150,000 cars are stolen*. For those unfortunate enough to experience this situation, they may find themselves in a tricky situation, finding cash, to replace their lost motor. Motor insurers will commonly not pay out the full original value of the motor and instead only pay out a settlement equal to the value of the car at the time of the accident.
So if a brand new car costing £20,000 depreciates in three years to £10,000 and is then written off due to accident or theft, the motor insurer will only pay out the £10,000. The trouble now is finding the additional £10,000 to purchase a for-like motor and this is where GAP insurance plays its key role.
GAP insurance adds that extra protection to the depreciation of a motorist’s vehicle. As the name indicates, it will cover that missing gap of money to meet the actual value of the car at the time of purchase. So with GAP insurance taken out against the vehicle, that additional £10,000 doesn’t become so hard to find. That is GAP insurance in its simplest form**.
The appealing factor of GAP insurance is that it available for brand new or used cars brought through dealers and used cars purchased privately in a variety of options.
Return to Value: This GAP insurance option pay the difference between what the motor insurer pays and the value of the car when GAP insurance is taken out.
Return to Invoice: This GAP insurance option covers the different between what the motor insurer pays and the original invoice price paid for the car.
Vehicle Replacement: Designed for new cars, this option pays the difference between what the road insurer pays and the cost of a brand new car of the same make, model and specification. Even if manufacturer’s prices have increased since your original car was purchased.
Ultimately, having a car written off can be a distressing experience for anyone without having to think about how to replace it. GAP insurance can help bring that extra element of security so if the worse possible scenario with your car happens – getting back on the road will be easier.
Warranty Direct’s GAP Cover Insurance options have been designed to be flexible to motorists’ requirements whether you have a brand new or used car brought from a dealer or privately. With wide claims limit range and a dedicated team, Warranty Direct’s GAP Cover Insurance is designed to protect motorists from the pitfalls of a “total loss.” Call today on 0800 097 8838 or visit gapcoverinsurance.co.uk .
* – Based on stats provided by Honest John and LV=Car Insurance Report 2014
**- Terms and conditions apply.
Warranty Direct is an Insurance Intermediary authorised and regulated by the Financial Conduct Authority. Our FCA Register Number is 309075. Warranty Direct Limited is a company, registered in England and Wales No. 3233010 at Pinnacle House, A1 Barnet Way, Borehamwood, Herts, WD6 2XX. Policies are subject to English Law.