GAP Insurance, it's something you normally first hear of from your car salesman, but what does GAP Insurance actually do and why is it a good idea?
GAP Insurance covers the difference between how much you originally paid for your car and the amount your insurance company will pay you in the event of a write off or theft. It's worth noting that when you buy a brand new car it's worth its most at the point of purchase, but your insurance company will not usually pay this amount if you write the car off.
At MotorEasy we like to make things simple so we have put together this handy guide to the basics of GAP Insurance (or guaranteed asset protection, to give it its proper name), why do you need it? How does it work? Which of MotorEasy's products is best for you?
Motoring journalist, TV presenter and racing driver Rebecca Jackson is here to explain why you’d consider GAP Insurance.
What Is GAP Insurance?
Buying a brand new car is lovely, but we all know that as soon as we drive it off the forecourt it's value starts to rapidly drop.
Should you suffer a write off or theft your insurance company will often only pay out the current value of your vehicle - which is likely to be a lot less if your car is brand new.
If you choose to buy GAP Insurance this will cover the difference between the price of your car at the time of write off or theft and the amount you originally paid for it.
When Is GAP Insurance Needed?
You can take out MotorEasy GAP Insurance at any time after you've bought your car. We have three products that can be used if you've just bought the car (new or used), have owned your car for a while but haven't got around to taking out any GAP insurance, or if your car is on finance.
It's also a good idea to buy GAP if you have just bought a car you know will depreciate faster than others, as GAP Insurance will top up any insurance payout in the event of a write off.
What GAP Insurance Is Best For You?
Luckily for you, MotorEasy works out the best GAP Insurance for your car and situation to make sure you get the best GAP cover at the best price. You might think it's just easier to buy it from the dealer while you're there but you'll save 75% by buying with us rather than with your dealer, for exactly the same cover.
MotorEasy has three levels of cover which you can have for 2-4 years....
Vehicle Replacement Insurance
This bridges the gap between what your insurer's payout will be and the balance needed to buy a replacement or similar vehicle, protecting you against any price inflation that may have occured since you bought your car.
Return To Invoice
This covers the difference between your insurer's payout and either the price you originally paid or the amount needed to settle your outstanding finance balance, whichever is the greater.
Return To Value
Covers the difference between your insurer's payout - based on the current value of your car and its value at the inception of your GAP insurance policy.
Where Can You Buy GAP Insurance?
As mentioned you can get your hands on GAP Insurance when you purchase your car from a dealership, but they will often quote you a price that will make it seem like an expensive option. They are however now duty bound to tell you that you can get this handy cover elsewhere - which is where MotorEasy comes in.
We can save you up to 75% on main dealer pricing whilst offering you exactly the same level of cover.
Is GAP Insurance Worth It?
Well, this depends on how old your car is and how quickly it depreciates. If you have just bought a brand spanking new car it's definitely worth having GAP Insurance - as soon as you drive your shiny new ride off the forecourt it is reported to lose 30% of its value something you won't get back.
You might also want to consider it if you live in one of the UK's most dangerous places to own a car or if it is one of the top 10 most stolen cars, these two examples are a no brainer - obviously we recommend that you get GAP Insurance whatever car you have up to 8 years old and 80,000 miles.
"car is stolen due to you leaving the keys in it"
What Does GAP Insurance Not Cover?
We said we were going to be honest. GAP Insurance will not cover you for these eventualities.
- If you write off was caused by someone other than yourself driving the vehicle without consent.
- If your car is a supercar, like a Lamborghini or Ferrari.
- If your car is stolen due to you leaving the keys in it or on it, any windows being left open or the roof down.