Gap Insurance Coverage

When you proceed to your car dealership company to finally get that new car, probably the last thing on your mind is the thought of what is going to happen when your brand new car or your “newly-bought” car gets totaled soon. Guaranteed Auto Protection, or simply known as GAP or GAP insurance, will take care of the gap in your standard insurance that you most likely mistake to be included in the coverage already. As a matter of fact, it shows from studies that 9 out of 10 car owners have no idea of what GAP insurance cover is. This is sad, because GAP could prove to be the most important coverage you could have purchased as a car owner. Therefore, you must familiarize yourself with what it is and how it works so that you can determine if taking it up would be beneficial to you.  Read the rest of this entry »

GAP (Guaranteed Auto Insurance) is an insurance that will give the insurer a piece of mind. This is because a GAP insurance covers the difference between the worth of the car and the money you still owe on the car.  This insurance is especially important in cases where you are still paying for your car and it is stolen or damaged beyond repair or the car’s repair would cost more than its worth. 

Remember that unless you have paid in full the car you purchased, it technically and legally still belongs to the manufacturer or that bank which financed it.  Therefore, you are responsible for it if something happens to it.  Or simply, even if the car is stolen or is rendered unusable, you would still need to pay its amortization.  Therefore, so as not to make it hard on yourself and feel bad about paying monthly for something that is no longer existing or usable, then you would definitely want to get a GAP insurance policy.  As the name of this insurance suggests, it will pay for the “GAP” between the amount still unpaid to the leasing institution and the amount of the car if totaled or stolen.
For a more vivid illustration, let us take for example that you bought a car for £20,000. Payments are at £400 per month at an interest rate of 5%.  Then all of a sudden, the car was hit by a truck that lost its breaks and was totally wrecked.  You will of course be calling your regular car insurance company.  However, since time passed since the car was bought, the auto insurance decides that the price of the car at that time is only at £15,000 and will only be covering that amount.  This will make you face the fact that your car has already depreciated 25% and you will have to shell out £5,000 worth for the car.  This will not happen if you have a GAP insurance.  This insurance will be the one to cover the GAP, meaning it will be paying for the lacking £5,000 for repair or replacement of the vehicle. Read the rest of this entry »

Some of the features that can be found with Gap Car Insurance are that there is no claim limit.  It is possible to find a company that doesn’t put a cap on the amount of money that is paid out.  If you own an expensive vehicle this is the type of Gap Insurance feature that you will want. This post sets out a summary of gap insurance as it applies to cars but if you are looking for a more detailed guide to car gap insurance the read our gap insurance explained guide You can get this insurance for up to seven years from the date of purchase of your vehicle.  It won’t matter if you bought your car from a dealership or a private party. Read the rest of this entry »

Our gap insurance cover can be obtained for a fraction of the cost of identical policies that are offered by many vehicle dealerships. Most gap insurance policies are sold through car dealerships which is not an issue in itself but the prices charged by these dealerships is often up to 75% higher than the cost of identical policies online. Dealers rely on the fact that there is already an element of inertia as you will have just bought your vehicle and the cost of the gap cover will not appear expensive in the context of what you have just spent on the car or motorbike. However, if you take the time to go online and shop around you can save a considerable amount. Read the rest of this entry »