Top Tips To Follow Before Purchasing GAP Insurance
Follow our tips to get the best motor GAP Insurance deal.
- 30 Mar 2021
Having GAP Insurance cover on a new car is like an extra layer of bubble wrap around your finances. It’s protection from the worst possible scenario that could happen.
When you purchase a brand-new car, its value falls by a third as soon as you drive it off the forecourt. Then, the value will drop again by another 40% in the first year and up to 60% over three years on average, according to the AA.
If your car is stolen or written off, your motor insurance will cover a what they think your car is worth at the time of the incident and you’ll be left out of pocket for the remaining amount (which could potentially be up to 40% of your original investment).
Top Tips on GAP Insurance
- By researching your options, you’re very likely to find a better deal on GAP Insurance than your car dealer has, so don’t settle for the first one you see.
- Car dealers must wait a minimum of 4 days after the car is sold to sell you GAP Insurance but if you find a better option, you can buy it whenever you like.
- Ask to spread the costs. All great GAP Insurance providers will offer their customers the option of an instalment plan.
- Look for GAP Insurance providers who have A-Rated insurers. This means the financial stability of the company has been verified and your money is safe.
- Again, look for a company that is UK based and insured. This means that it will be regulated by the Financial Conduct Authority and will have the customers best interests as a priority.
Is GAP Insurance for you?
- You are paying back the car via finance over a long-term lease. If your car is written off or stolen, you will be responsible for paying back what you owe
- The car you purchased depreciates very quickly
- The car is a next to new being a couple of years old, but in the event your car was written off or stolen, you’d like a new model replacement car
- You’re looking to protect your investment and not get caught in the shortfall
- You would be happy with a like-for-like replacement car worth the value of your car at the time of the incident
Customers can be reassured that with Best4 GAP that they can get an free, instant and great value quote from an A-Rated, UK-based, trusted GAP Insurance provider.
Get to Know GAP
There are different kinds of GAP Insurance policy that applies to the different ways a customer can purchase a vehicle.
Types of GAP Insurance
- Return to Invoice
- Combination GAP
Return to Invoice GAP Insurance
Return to Invoice (RTI) GAP Insurance can also be recognised as Purchase Price and Finance GAP Insurance.
What’s covered in a RTI policy?
This policy will pay the difference between the motor insurance settlement figure and the greater of either the purchase price of your vehicle or the early settlement amount that you owe to your finance company.
Lease and Contract Hire GAP Insurance
Lease GAP insurance will cover up to 3 months deposit and pay the difference between the insurer's settlement offer and the early termination charge.
This policy is exclusively for vehicles under a lease agreement.
What’s covered in a Lease and Contract Hire policy?
This policy will pay the difference between the motor insurance settlement and the termination charge applied by the finance company. We will also cover your initial deposit rental paid on your vehicle up to a maximum value of 3 of your monthly rentals.
Get your no-obligation, free GAP Insurance quote today!