A Quick Introduction to Gap Insurance
In fact, there are a lot of car owners who think that this type of insurance is simply a gimmick or some costly and unnecessary add-on which is more or less likely to prove useless in the overall scheme of things. However, the fact is those who have found themselves in the position where their car has been a total loss through accident, fire or theft will tell you that taking out a GAP Policy was one of the wisest decisions they have ever made as the peace of mind that the protection offers and added benefit that it provides is invaluable.
What Protection Does GAP Insurance Provide?
In short, GAP insurance is a special type of additional motor insurance product that is designed to protect a vehicle owner from losing money on one of their biggest assets. It is usually purchased at the same time as a car and the huge benefit of this type of insurance is that if the vehicle is written off and declared a total loss by the motor insurer due to fire, accident or theft, then GAP Insurance will pay the difference between the value at the time of loss and the actual price that was paid for the car when it was bought. This means that, depending on the type of policy chosen and the claim limit selected, you will get back the original amount you paid for the car!
Is It Worth Taking Out GAP Cover?
If you have just bought a car then GAP Insurance will save you thousands of pounds in the event of a serious accident or the vehicle being stolen and never recovered. Many people are under the false impression that their comprehensive insurance policy provider will simply refund the full purchase price of a car should the vehicle become a write-off or total loss. The fact is that typically the motor insurer will only pay the depreciated value at time of loss, which could be thousands of pounds less than the original cost. This depreciation is exactly what GAP Insurance pays.
The vast majority of motor insurance providers typically only reimburse the claimant with the book value of the car that they are providing cover for and, in realistic terms, this will usually be a significantly lower figure than the amount originally paid..
For example, if you bought a new car for £20,000 and then 3 years later it was stolen and set on fire, your current insurance policy might only entitle you to a payment of £13,000 depending on how much the vehicle has depreciated in value. This would leave you at a loss of £7,000. However, if you had taken out GAP Insurance then your Guaranteed Asset Protection policy would make up this difference.
There are a number of different GAP policies currently available and choosing the most appropriate cover for your individual circumstances could save you a lot of money. At Click4Gap, we are able to provide affordable GAP products that are much cheaper than you’d expect pay anywhere else whilst still offering the exact same level of protection. For the last 6 years we have offered a unique and simplified range of online GAP Insurance policies that have been designed to provide no-nonsense cover that you can depend on, time and again, and you can rest assured that as a valued customer you will be dealt with in a fast and professional manner should you find yourself in the situation where you need to make a claim.