Gap Car Insurance

With today’s advances in the business world with the arrival and institution of the internet, it is now much more simple and, of course, so much cheaper to shop around on the World Wide Web at the simple click of a mouse button. The same can apply for gap car insurance.

Our enthusiasm 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 educate and assist you with every gap insurance problem.

Gap insurance from Click4Gap provides you with coverage when your vehicle is either stolen or classed as a write-off by insurance companies after an accident. This type of insurance is initiated to cover the difference between your purchase price of the vehicle, the total remaining amount due in settlement to the finance organization, or the remaining debt on the vehicle according to the lease or contract hire agreement, and the actual cash value of your motor vehicle (the depreciated value of your vehicle according to your comprehensive insurance company).

Although, in most cases, the finance companies require car owners to have full, comprehensive motor insurance, gap insurance is frequently (if not always) not included. In the event of your car being either totalled in an accident or perhaps even stolen, you could end up with a very nasty surprise especially with the rapid depreciation of the car values today.

The very minute that you drive your new car off the forecourt the value drops immediately. This means that your new car is, in fact, not quite new anymore, and if any negative situation occurs, you will still end up owing the full value of the car loan. Basically, within the first year or two, the vehicle’s value will drop a great deal. 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 outstanding on the vehicle.

Gap car insurance is extremely important when it comes to extra insurance for your vehicle. Your comprehensive motor insurance policy will only cover your vehicles 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, the vehicle’s value is depreciating. At the end of the day, whether you have paid cash for your vehicle or have taken out finance for the vehicle, in the event of a total loss of your vehicle you could find yourself in a financially risky situation.

The reason gap car insurance is so important to car buyers, is because the standard motor and accident insurance policies generally only cover the car for its current market value. In some cases this insurance pay out could end up being less than what you originally paid for the car from the minute you drove the car off the car lot. In the event of your car being totalled or stolen (which we hope will not happen to you), you may find yourself paying off the loan or finance for a vehicle which you do not drive (or even own) any longer.

In the above situation, gap car insurance will come in extremely handy. This type of gap insurance policy will insure you for the difference on what you still owe on the car and the insurance companies depreciated payout for the vehicle.

If your vehicle is stolen, the insurance situation will be the same as when you have an accident. The comprehensive insurance policy will cover the depreciated value of the vehicle, not necessary the value of the loan or finance that you still owe on the vehicle or the amount you originally paid. You might find yourself stuck paying off a loan or finance for a vehicle that you do not have anymore. This added to the feeling of having the car stolen in the first place could make it a really tough time for you.

As the name implies in this insurance policy, gap car insurance will cover what the comprehensive motor insurance cover does not. It simply closes the gap between what the insurance company pays out for your car, the depreciated value, in the case of theft or accident and what you still owe the finance or lease company or the amount you originally paid for the car

Gap insurance or better known as guaranteed asset protection insurance will give you the 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 vehicles 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.

Click4Gap has a variety of packages 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.

Another option is for new car purchases (using cash, finance options, contract options or even lease agreements) no matter how you financed it: 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 auto protection. This means that a gap policy will cover the gap between the depreciated settlement figure from your insurance company and the outstanding balance that is still outstanding 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.