GAP Insurance (Guaranteed Asset Protection)
GAP Insurance Simplified
GAP insurance is a difficult concept to grasp. The rate of those who struggle to understand how it works attests to this fact. This guide, however, is to ensure that you easily compare cheap gap insurance online.
What does GAP (Guaranteed Asset Protection) Insurance Cover?
When you get involved in an accident and your vehicle or bike becomes a write-off. If you are not properly insured, you might find yourself in a dicey situation.
GAP insurance is what you need to prevent a financial meltdown. Not only do you prevent losing money on your asset, you are actually getting the full value of your car or bike. Guaranteed Asset Protection, as the name implies, gives you a guaranteed protection on your asset.
Compare GAP insurance quotes online so that if that accident occurs, you can get back the real cost of the car which your insurance might not be able to cover. It covers the difference between the original amount you got the car and the amount your insurance pays out based on the car’s value at the time of the incidence. Basically, GAP insurance helps you replace your car without you having to find additional funds.
Why Should I Buy Gap Insurance?
GAP insurance gives you that assurance against any loss when your car becomes a write-off or gets stolen. Unlike normal car insurance where the amount you receive is based on the current market value, GAP insurance provides the full remuneration. Hence, you should think carefully before you decline GAP insurance comparison.
Types of GAP insurance
Vehicle Replacement Insurance (VRI)
This is a type of gap insurance that covers the difference between your motor’s insurance write off settlement and the current market value of your vehicle or a model similar to the previous one.
This is only available for new cars and they have to be less than 3 months old. For cars to qualify for this, they should also have a record of less than 1,000 recorded miles. Getting Vehicle Replacement Insurance also means you are entitled to a financial settlement agreement.
Return to Invoice Insurance (RTI)
This type of GAP insurance covers the difference between what the insurance valuation amounts to and the original value of the car as at when it was bought. Unlike Vehicle Replacement Insurance where only new cars are eligible, here, new and old cars are open to this GAP insurance.
Ideally, it is aimed at vehicles which were purchased from dealers within the last three months.
Return to Value Insurance (RTV)
As the name implies, the insurance covers the difference between the insurance broker’s valuation and the value of your car as at when you acquired a GAP insurance. To qualify for this package, your car must be valued under £50,000. You should also ensure that it was bought privately or from a dealership. Another requirement is that it must have been owned for more than three months.
Which Gap Insurance Do You Need?
When you know the type of policy that best suits you, you can use our online GAP insurance comparison to find the one that gives you the appropriate cover.
Factors to Consider for GAP Insurance Online
The maximum amount the policy will pay out when you pay.
Length of Ownership
How long you have owned the car.
Length of Cover
How long the policy will last for.
To apply for a gap insurance policy you have to be up to 18 years and above and also be the named driver of the car.
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