You may have heard the term GAP insurance before but might be unsure about what it actually is. If so, you’re not alone. For some reason many insurers have trouble explaining what GAP insurance is, despite it being such a valuable and worthwhile policy. Allow us to clear things up...
What is GAP insurance?
If your vehicle is written off as a result of an accident or theft, most insurers will only pay out the amount your car was worth at the time and not the amount you paid for it. As we all know, a car starts to lose its value the moment you drive it out of the showroom, meaning you can be left out of pocket.
Did you know? Some cars can lose nearly 40 per cent of their purchase value within a year alone.
You can very quickly begin to see where the problem lies. GAP insurance protects your car’s original value. As an insurance policy, it’s a worthwhile investment and one you can’t afford not to have. You may think that such a cover must cost an astronomical amount, not true. Premiums start from as little as £130.