It is not common knowledge for all motorists, but if your automobile were to be written off then your insurance policy provider would only pay out the current market value of the vehicle (even comprehensive insurance policies).
Depreciation can be as much as 77% after just three years of ownership which means that you could be left carless and out of pocket by thousands of pounds.
As an example, if you bought a car for £25,000 and it was written off after three years you would only recoup £11,250.
#1 A Solution
This is a staggering amount of money to lose and it would make it challenging to purchase a replacement car, but there is a solution in the form of GAP insurance.
GAP insurance is an optional policy which will cover the shortfall between the insurance payout and the amount outstanding on the finance agreement or the price that you paid for the vehicle.
Essentially, GAP insurance protects your investment and provides peace of mind when out on the roads.
#2 Important Cover
Some people believe that GAP insurance is unnecessary and that they do not need it because they are great drivers and will never get into an accident.
Unfortunately, accidents occur constantly and often a motorist will not be at fault but still have their vehicle written off. In addition to this, automobiles are determined written off by insurance companies when lost and never recovered or damaged by fire.
Car crime is a big problem in this country so GAP insurance is a smart investment.
#3 Specialist Policies
You will be offered a GAP insurance policy when you purchase the vehicle, but it is much better to purchase it from a specialist like ALA. Specialists offer flexible cover, the best deals and they do not include clauses which can restrict the payment.
GAP insurance is a smart purchase for used cars, but also new ones as the value will begin to plummet as soon as you drive off the forecourt and the first year is the biggest financial hit (criminals will target new cars too).
As you can clearly see, GAP insurance is an intelligent purchase and highly worth it when you consider the rate of depreciation and the fact that write-offs can occur at any time whether it is an accident or the vehicle is targeted by a criminal.
Write-offs could leave you out of pocket by thousands of pounds and without a car, so consider protecting your investment with a GAP insurance policy.
Are you considering GAP insurance?
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