Protecting your Investment with GAP Insurance
Posted on 9th August 2024 at 10:27
GAP insurance, or Guaranteed Asset Protection insurance, is a vital product for car owners who have financed or leased their vehicles.
It covers the difference between your car's insurance payout if it is written-off or stolen, and the amount you owe on your loan or lease.
Why You Need GAP Insurance
Cars depreciate rapidly, often losing 15-35% of their value in the first year. If your car is declared a total loss, your standard insurance only covers its current market value, potentially leaving you with a financial shortfall. For example, if you owe £18,000 on a car now worth £15,000, GAP insurance would cover the £3,000 gap.
Types of GAP Insurance
Return to Invoice (RTI) - covers the gap between the insurance payout and the car's original purchase price.
Finance GAP - covers the difference between the insurance payout and your outstanding loan balance.
Lease GAP - covers remaining lease payments and early termination fees.
When to Consider It
GAP insurance is beneficial if you have a long-term loan, made a small down payment, or own a quickly depreciating vehicle. It provides peace of mind by protecting against financial loss.
GAP insurance safeguards you from financial burdens due to vehicle depreciation and total loss. At Hedon Insurance, we can help you find the right GAP insurance policy to ensure you're fully protected.
Call us on 01482 707800 or email info@hedoninsurance.co.uk for a quote today.
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