GAP, or Guaranteed Asset Protection, insurance covers the difference between the amount you paid for your vehicle and the amount of money that your insurance company return to you if your vehicle is written off or stolen, leaving you with no financial shortfall.
Do I need GAP insurance if I finance or lease my new vehicle?
If you choose to fund through a finance, contract hire or lease agreement, in the event the vehicle is written off or stolen, the amount your insurance company return to you may not be sufficient to cover the outstanding finance balance. GAP insurance takes away the worry of owing money to one finance or leasing company whilst potentially having to take out another agreement to be able to have another new vehicle.
My insurance company will give me a brand-new vehicle if mine is written off or stolen so what’s the point in GAP?
Some insurance companies may offer ‘new vehicle replacement’ within the first year. However, if your finance/leasing agreement is 2, 3 or 4 years long, you may still face a financial shortfall in the event your vehicle is written off.
If you have any further questions, our team will be more than happy to help. You can give us a call on 01473 554201.