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.
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.