Why GAP Insurance is a Good Idea

gap insurance chart
Why GAP Insurance is a Good Idea

When we take out insurance, most of us assume that it will help us to fully recoup our losses in the event of our car being written off. We imagine that this is its primary purpose: to safeguard us against bad fortune and help us to get back on our feet in times of trouble.

But if you had an accident tomorrow, you might not be too impressed with your pay-out. The reality is that your average insurance policy won’t cover you for how much you paid for your vehicle, even if this is the same amount you insured it for; instead, you’ll only receive the sum your insurer values it at in the current market environment.   

This is where GAP insurance comes in handy…

What is GAP Insurance?

Available from companies like ALA, GAP insurance is the perfect protection for those who write off their vehicle. Ensuring that you receive not just what your insurers value your vehicle at, but also the shortfall between this and the amount outstanding on your finance agreement, it will make certain that you’re not left out of pocket if ill-fortune should strike. 

Is GAP Insurance Worth It?

Now that you know what it is, your natural next question will be whether it’s worth your while to invest in GAP insurance. Our advice would be that it is. Fully covering you if you write off your vehicle, it provides an absolute guarantee that you won’t be left short of cash should circumstances contrive to work against you.  

But is a write-off really likely? The answer is ‘yes’. With innumerable cars stolen or damaged each year, they’re more common than you think, and you could be the next person to find this out for yourself.

The only way to protect against such a scenario is with a suitable policy.  

Why Should You Buy GAP Insurance?

If you’re still not certain, here are a few points that you might find interesting:
  • Vehicle crime amounts to a third of all crime, with the majority of the cars that are stolen ending up written off. 
  • A vehicle is stolen every minute, and a third of those taken are never recovered. 
  • Cars are worth less than a quarter of their original purchase price after just three years, representing a significant loss for the owners of written-off vehicles – unless they have GAP insurance. 
Protect yourself from falling foul of a write-off today – take out GAP insurance and you’ll never have to worry about being left out of pocket again.