Why You Should Consider Buying Gap Insurance!
Most people think that there fully comprehensive motor insurance will take care of the financial cost in the event of a total loss claim.
In most cases this is not the case, which is why you need to consider Gap Insurance.
Many of us think that our fully comprehensive motor insurance policy provides adequate protection in the event that our car is written off due to theft, an accident or fire.
In many cases this is far from the truth! Motor insurance policies will only pay out based on the current market value of a vehicle, which could be substantially lower than the original purchase price.
You could be in for an unpleasant surprise when you discover how much your insurance company is prepared to offer you in settlement of your claim.
The advent of pre-registered cars and the flood of nearly new cars hitting the market in recent years has created a gulf in prices between the list price of a new car and its 6 month old cousin.
Cars are now depreciating at alarming rates and many of us are not aware of the financial implications this could have when it comes to replacing our vehicles! Many of us gladly pay our motor insurance every year unaware of the fact that we could still be left with a large bill in the event of an insurance write-off! Why is this? Well, basically nearly all motor policies pay out based on the current market value of your vehicle, not the price you paid for it or the amount you owe the finance Company.
With rates of car depreciation on the increase, many people are now taking additional precautions by choosing to take out gap insurance.
In recent years, long term financing has grown in popularity when buying a new or used car.
Many of us tend to part exchange their current car, which may already have an existing finance balance which invariably gets transferred to the new purchase.
This method of financing has created a high number of cases of negative equity where many of us are driving around in cars that are worth far less than the amount we owe on them! Making sure you have adequate insurance cover if you have a finance agreement on your car should be a priority.
You should read the terms and conditions of your motor insurance policy and find out how much you will receive in the event of a total loss claim.
A Gap Insurance policy is designed to cover the difference that your fully comprehensive motor insurance policy will not!
In most cases this is not the case, which is why you need to consider Gap Insurance.
Many of us think that our fully comprehensive motor insurance policy provides adequate protection in the event that our car is written off due to theft, an accident or fire.
In many cases this is far from the truth! Motor insurance policies will only pay out based on the current market value of a vehicle, which could be substantially lower than the original purchase price.
You could be in for an unpleasant surprise when you discover how much your insurance company is prepared to offer you in settlement of your claim.
The advent of pre-registered cars and the flood of nearly new cars hitting the market in recent years has created a gulf in prices between the list price of a new car and its 6 month old cousin.
Cars are now depreciating at alarming rates and many of us are not aware of the financial implications this could have when it comes to replacing our vehicles! Many of us gladly pay our motor insurance every year unaware of the fact that we could still be left with a large bill in the event of an insurance write-off! Why is this? Well, basically nearly all motor policies pay out based on the current market value of your vehicle, not the price you paid for it or the amount you owe the finance Company.
With rates of car depreciation on the increase, many people are now taking additional precautions by choosing to take out gap insurance.
In recent years, long term financing has grown in popularity when buying a new or used car.
Many of us tend to part exchange their current car, which may already have an existing finance balance which invariably gets transferred to the new purchase.
This method of financing has created a high number of cases of negative equity where many of us are driving around in cars that are worth far less than the amount we owe on them! Making sure you have adequate insurance cover if you have a finance agreement on your car should be a priority.
You should read the terms and conditions of your motor insurance policy and find out how much you will receive in the event of a total loss claim.
A Gap Insurance policy is designed to cover the difference that your fully comprehensive motor insurance policy will not!
