GAP insurance stands for Guaranteed Asset Protection. It relates to several different types of insurance that cover a 'gap' between your car's market value, and how much it was worth when you bought it. Cars depreciate in value very quickly – in fact as soon as you drive your new vehicle off the forecourt, the drop in value starts. This results in the difference that you paid for your vehicle and the actual worth of it today. If your car is stolen or involved in an accident that results in a claim, the settlement provided by your standard car insurance may not be enough to cover the difference in value. This is where GAP insurance comes in, by helping this disparity so that you are not left out of pocket.
GAP insurance has several different forms, but the main one is RTI GAP Insurance. RTI means 'Return to Invoice' and will result in the amount covered by your GAP insurance being equal to the original price you paid for the car. So if your car is written off and you need to make a claim, this insurance pays the difference between your claim settlement on your standard insurance and the amount you paid to buy the car.
When buying a car, you may be encouraged by the vehicle dealership to take purchase a GAP insurance policy, so that you will have the peace of mind of knowing that the full amount you paid for the car (and any outstanding finance on the car) will be covered. GAP insurance is usually taken out in addition to your standard car insurance policy, so you may not want to pay out for this additional expense – and if the car's market value when you bought it was relatively low, this may not be a sensible purchase for you. However, beware the insurance policies offered by car dealerships and be sure to shop around the insurance market before committing yourself. It is easy, in the excitement of acquiring a new car, to buy the insurance offered there and then – but it could cost you a lot more in the long run.
Make a quick call to Westhill Insurance Services and check out the GAP insurance we can offer. As an independent insurance broker we will shop around to find the best possible deal to suit your budget – as well as the vehicle you are buying and the mileage and usage you will put the car to. All of these factors influence the type of policy you will need and our friendly and professional team will be able to advise you the best way forward.
GAP insurance provides valuable benefits for the majority of customers who purchase a new or used vehicle, just make sure you don't fall down the price gap – one quick call to us at Westhill and you will be able to find the best policy to get your car on the road to enjoy carefree motoring.
Contact Westhill Insurance Services, today.