Absolute Beginners Guide to Gap Insurance
If you are just about to change our vehicle your local dealership will have most likely already spoken to you about gap insurance.
The problem is that it can be very confusing. So you search the internet to find more information and again even specialist websites and providers can be difficult to follow.
So what is gap protection?
Why do you need to think about it?
The whole idea of gap insurance is that it is an insurance policy that runs along side your own motor insurance policy and protects you if you vehicle is written off.
This is because if your vehicle is written off your own motor insurance company are only ever going to pay you what your vehicle is worth on the day it is written off. With the average vehicle losing up to fifty percent within the first three years alone the amount that your are offered can be a lot less than you paid all those years ago.
Without any form of gap cover and without using any savings you may have your own motor insurance companies settlement is the only amount that you would have to be able to replace your vehicle or clear any outstanding finance.
This is exactly where shortfall insurance can help as it is designed to come into action when your vehicle is written off. In fact depending upon the level of cover that you chose you can protect the difference between your vehicles valuation on the day it is written off and the amount that you have outstanding on finance ( finance and contract hire gap cover ), the invoice price you paid ( return to invoice gap insurance), or the replacement cost of another vehicle the same age mileage and condition as yours was on the day that you collected it from the dealership ( vehicle replacement insurance).
You can Google Gap Insurance and obtain hundreds of quotes within minutes. Being part of Aequitas Automotive Limited we naturally think that gap insurance is a good idea, however there is currently no legal requirement to protect yourself.
No dealership or finance house has the right or legal obligation to make you buy gap cover or in fact to make it a condition of acceptance or sale.
Instead gap insurance is always you choice. After all it is your vehicle, your money and you who would have to cope with any financial implications if your vehicle was written off and you had no cover in place.
The problem is that it can be very confusing. So you search the internet to find more information and again even specialist websites and providers can be difficult to follow.
So what is gap protection?
Why do you need to think about it?
The whole idea of gap insurance is that it is an insurance policy that runs along side your own motor insurance policy and protects you if you vehicle is written off.
This is because if your vehicle is written off your own motor insurance company are only ever going to pay you what your vehicle is worth on the day it is written off. With the average vehicle losing up to fifty percent within the first three years alone the amount that your are offered can be a lot less than you paid all those years ago.
Without any form of gap cover and without using any savings you may have your own motor insurance companies settlement is the only amount that you would have to be able to replace your vehicle or clear any outstanding finance.
This is exactly where shortfall insurance can help as it is designed to come into action when your vehicle is written off. In fact depending upon the level of cover that you chose you can protect the difference between your vehicles valuation on the day it is written off and the amount that you have outstanding on finance ( finance and contract hire gap cover ), the invoice price you paid ( return to invoice gap insurance), or the replacement cost of another vehicle the same age mileage and condition as yours was on the day that you collected it from the dealership ( vehicle replacement insurance).
You can Google Gap Insurance and obtain hundreds of quotes within minutes. Being part of Aequitas Automotive Limited we naturally think that gap insurance is a good idea, however there is currently no legal requirement to protect yourself.
No dealership or finance house has the right or legal obligation to make you buy gap cover or in fact to make it a condition of acceptance or sale.
Instead gap insurance is always you choice. After all it is your vehicle, your money and you who would have to cope with any financial implications if your vehicle was written off and you had no cover in place.
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