Insuring your car in the modern world can be a minefield. With so many different providers and offers to choose from, it can be tempting to go ahead with one of the first packages you come across. However, getting a tailored solution from an independent provider is often a better way forward.
Is Regular Car Insurance Enough?
Regular car insurance alone may not necessarily provide you with the safest and most cost-effective solution for your circumstances; this may be particularly true of businesses with one or more company vehicles. Regardless of whether you are buying insurance for one or more vehicles, it is important to properly protect the value of your investments; after all, you never know what is around the corner!
GAP Insurance
Guaranteed Asset Protection (GAP) insurance provides cover when a vehicle is written off or stolen. Used in conjunction with regular car insurance, it bridges the ‘gap’ between the payout of an insurance provider and the value of the vehicle at the time the insurance policy was taken out.
Think about what would happen if you lost your vehicle. Your regular insurance may cover you for the value of the vehicle at the time of the incident, but what about other costs? You’ll still need to pay your insurance premium for the agreed duration, and you may be tied into other agreements. And you may need to hire a car too! The cost of losing your vehicle can quickly stack up! GAP Insurance can mitigate these additional costs by paying back the value of your car at a specified date in the past (this depends on the type of GAP insurance).
The type of GAP Insurance available to you depends on the age of your vehicle and any existing agreements in place.
Finance GAP Insurance
An increasing number of businesses and individuals are choosing finance agreements to purchase their vehicle. Finance GAP insurance covers the difference between your insurance provider’s settlement amount and the cost of outstanding finance on your vehicle. Additional peace of mind for those in an existing agreement!
Return to Invoice GAP Insurance
For cars less than seven years old, this type of GAP insurance pays for the difference between what your insurer will pay out for the current value of the vehicle, and the value of the vehicle at the time of purchase. Should the worst happen, your business won’t be out of pocket.
Return to Value GAP Insurance
Similar to Return to Invoice, this type of GAP insurance is for cars over seven years old, and pays the difference between the value of the car at the time the insurance was taken out and the insurance payout.
Replacement GAP Insurance
This type of GAP Insurance pays out a sum that is in addition to your regular insurance; the total amount enables you to purchase a brand new, identical model to the one that was written-off.
Why GAP?
Ultimately, GAP Insurance brings you additional peace of mind and reassurance; after all, the cost of losing your vehicle can represent a crushing blow.
Is it worth the risk of not having GAP Insurance?
