What is GAP Insurance?
Are you looking to buy a new or nearly new vehicle?
Everyone knows when you buy a new vehicle you lose money from the second you leave the forecourt.
Unfortunately the amount owed under any finance agreement does not fall quite as fast.
So, should you have an accident and your vehicle be written off, most insurers will only pay-out the value of the vehicle at the time of the accident, known as the current ‘market value’.
This will be less than you paid for the vehicle and, invariably, less than the outstanding balance on your finance.
Standard GAP Insurance covers this shortfall.
Your Vehicle cost – £20,000
Deposit – £1,000
18 months later…..
Insurance settlement after write off – £12,000
However outstanding amount left to pay on your finance – £14,500
Shortfall left to pay – £2,500
Standard GAP INSURANCE will pay this £2,500
However, as well as having to pay for the shortfall, you will also need to be looking for a new car!
Return to Invoice GAP Insurance pays the difference between the purchase price and the insurer’s settlement, or if greater the amount required to settle any finance.
Your Vehicle cost – £23,000
24 months later…..
Insurance settlement after write off – £16,000
Return to Invoice GAP INSURANCE will pay the difference of £7,000 to return the full value of your vehicle.
Still not sure what GAP Insurance is? Perhaps this video might help…
Am I eligible?
For more information and to see if you are eligible for GAP Insurance, please contact:
Gary B Baxter Dip CII
Dont get caught out, call us today on 01253 594211!
Our premiums are often much more competitive than those offered by garages.