Do I Need GAP Cover If I Already Have Comprehensive Motor Insurance?
However, this is actually quite far from the truth. In reality, if you do need to make an insurance claim for a car that has been written-off or is considered to be a total loss following a bad accident or theft then you may only be entitled to a payout that is equivalent to the book price or market value of the vehicle on the date that the incident took place. In order to avoid being out of pocket in such situations, many motorists take out Guaranteed Asset Protection otherwise known as GAP Insurance.
Car GAP Insurance and Vehicle Depreciation
One of the main factors that you should be aware of when purchasing a new vehicle is that new cars begin to lose their value from the minute you put the keys into the ignition and drive them away from the showroom. In a matter of seconds, your brand new investment has suddenly become a “used model” and its market value will have dropped considerably! Over the course of the ensuing months and years, the “book price” or market value of your car will sink further and further and this is referred to as vehicle depreciation. This level of depreciation is something that your comprehensive motor insurance does not protect you against and it is the main reason that Car GAP Insurance is bought by millions every year. By taking out a GAP Car Insurance policy, you are effectively plugging the gap between the value of your car when it was new and the market value at the time of your investment being written off in the event of it being stolen and never recovered or damaged beyond cost effective repair.
Is GAP Insurance Really Worth It?
It is common knowledge in the motoring trade that certain makes and model of car can quite easily lose up to two thirds of their initial retail value in just three or four years from the date of purchase.
With this in mind, a car costing £15,000 in a showroom could quite easily be worth just £6,000 or £7,000 in the not too distant future and as far as a comprehensive motor insurer is concerned, if the vehicle was involved in a serious accident or it was stolen and written off as a total loss then this paltry figure is the actual amount that would be paid out.
An affordable Return To Invoice Car GAP Insurance Policy from a specialist provider such as Click4Gap starts from as low as just £25 for a year and in return for this small premium you will receive the full difference between the value of your car when you bought it and the value of your car at the time of the car being written off. In most cases this will quite literally be thousands of pounds and many motorists who have had to make a claim on their GAP Insurance policies will tell you that taking out the extra protection was one of the best decisions they have ever made.
What Types of Car GAP Insurance Do You Offer?
At Click4Gap, we offer three main types of GAP Car Insurance which are underwritten directly by ourselves. Our highly competitive GAP Car Insurance policies are designed to provide full Guaranteed Asset Protection at a fraction of a cost that you would normally expect to pay elsewhere.
The three polices that we provide are:
Return To Invoice GAP – suitable for new and used cars which are less than 7 years old and have under 80,000 miles on the clock at the start of the policy. RTI GAP can be purchased up to 90 days after ownership of a car commences and provides full asset protection for up to four years.
Vehicle Replacement GAP – protects against depreciation AND inflation. This is suitable for new, ex-demonstrator and (in the case of Click4Gap) pre-registered cars up to 3 months old which can be used for any purpose (private or business). This covers you for up to 3 years and in the event of the car being declared an insurance write-off it entitles you to the depreciation difference plus the price of a brand new like-for-like replacement car – even if this is a few thousand pounds more than the purchase price of the car you are protecting!
Return To Value GAP – suitable for car owners who are seeking Guaranteed Asset Protection some time after the initial purchase date of a vehicle. Cover can be taken out in the first 7 years of buying a new or used car and this protects the owner from depreciation that occurs after the start date of the policy. However, the car must be less than 7 years old with a maximum of 80,000 miles on the clock at the start of the policy. RTV Car GAP Insurance offers full protection against depreciation for up to 4 years.
Click4Gap are fully approved and regulated by the FCA. Our professional UK based customer service team are available to answer any questions you may have relating to the different types of cover we offer and will at all times strive to ensure that you get the best possible deal with unquestionable peace of mind.