Gap Car Insurance by Click4Gap

With today’s advances in the business and domestic world and the arrival of the internet as a household norm, it is now much simpler and cheaper to shop around for the things's we need with a few simple clicks of a mouse. This applies too for buying gap car insurance.

Our enthusiasm at Click4Gap to try and help you to understand gap car insurance is positively self-evident and we passionately believe that the internet is the perfect place for us to share this information and advice with you. We strive to not only to educate and explain but also assist you with every gap insurance question or problem you may have.

So what does gap insurance actually do?

A Gap Car Insurance Policy from Click4Gap.co.uk provides you with cover when your vehicle is either stolen or classed as a "write-off" by your insurance company after an accident. This type of insurance is initiated to cover the difference between the purchase price of the vehicle (Your Initial Capital Outlay), the total remaining amount due in settlement to the finance organisation (or remaining debt on the vehicle according to the lease or contract hire agreement) and the actual cash value of your motor vehicle at the time you make a claim. (This is also referred to as the depreciated value of your vehicle according to your comprehensive insurance company and is determined at the time of an accident, theft or vandalism claim). Click here to Buy a Gap Insurance Policy today!

What new car depreciation could mean to you

Although, in the majority of cases, finance companies require car owners to have comprehensive motor insurance cover GAP is seldom if ever included. Sadly this means that if your car is ever totally written off during an accident, if it is stolen or vandalized beyond repair, you could end up loosing the money you have tied up in the vehicle, and that's a big problem with the rapid depreciation of most new car values today. Your car's value at the time it is scrapped will more than likely be taken from its Blue Book Value.

The very minute that you drive your new car off the forecourt, it's value starts to drops. This means that your new car is, in fact, not quite new anymore, and should the worst happen, you will still end up having to continue paying any outstanding loans to the full value of the car for years to come. It is within the two to three years that the vehicle’s value drops the most. If you happen to be in an accident, or if the vehicle is stolen, you are more than lightly likely going to find that your comprehensive insurer’s payout will not cover the amount you have outstanding on the vehicle.

Since your comprehensive motor insurance policy will only cover your vehicle's pre-accident depreciated value (which ends up in most cases being a lot less than what you paid for the vehicle originally), from the moment you begin driving your vehicle, it is depreciating in value and you are losing money. At the end of the day, whether you have paid cash for your car or have taken out finance for the vehicle, in the event of a total loss you are the one most likely to lose out.

The reason that gap car insurance is so important to new car buyers is because standard motor and accident policies generally only cover the car for its current market value often leaving new car buyers to pay off the loan or finance for a vehicle which they no longer have! Another great reason for you to buy gap insurance.

Different types of gap insurance policies

Gap insurance - sometimes known as guaranteed asset protection - will give you added protection when your vehicle is declared a total loss. If you have used finance to buy your vehicle the gap insurance will pay out the difference between the vehicles pre-accident depreciated value and the amount that is outstanding with the finance or loan. There are other products that may also pay for the cost of replacing your vehicle, or at least provide a deposit to assist you in buying a replacement vehicle. If you did not use a loan or finance to purchase a vehicle there are other gap insurance products that will pay out the difference between the original purchase price and the vehicle's pre-accident depreciated value.

Gap insurance is also known as return to invoice insurance (RTI), back to invoice insurance, finance gap, vehicle replacement insurance (VRI), total loss gap, shortfall cover and car gap insurance. Some new car dealerships have begun to sell RTI under the name of Retail Price Protection - yet another term to add into the mix!

Click4Gap provides a variety of GAP products to ensure you are insured correctly. Firstly we have Return to Invoice Insurance (RTI); one of the best options for new and used car purchases whether the customer pays cash, finances through a finance company, contract hires or leases. This type of gap car insurance covers the total difference between your comprehensive insurance company’s payout and the original purchase price of the vehicle. You are thus guaranteed to get the full value of the vehicle back in the event of an insurance writ-off.

Another option is for new car purchases no matter how financed is Vehicle Replacement Insurance (VRI). If your car is at any point declared a total loss by your comprehensive motor insurer, Vehicle Replacement Insurance will ensure that you are supplied with a new vehicle of the same make and type regardless of price fluctuations. This type of insurance takes away the risk of the vehicle ending up at a lower value than the settlement figure.

GAP stands for guaranteed asset protection. A gap insurance policy will literally bridge the gap between the depreciated settlement figure from your insurance company and any outstanding balance owed on the vehicle in the event of the vehicle either being stolen or classified a write-off in an accident.

Click4Gap provides you with all the necessary information and assistance you will ever need when it comes to gap car insurance products and offers the cheapest rates for these insurance policies available on the market today.