GUARANTEED ASSET PROTECTION Cover
VIDEO Protect your vehicle with GAP Insurance Policy
GAP insurance, colloquially known as gap protection is an insurance policy that covers the difference between the cash value of the vehicle at the time you have suffered the total loss either by collision or theft, and the loan value of the car when you purchased or took the same on lease.
If you have a vehicle, no matter whether you own it or have taken it on lease, you are eligible for Gap Insurance services. In the event your car has been stolen or damaged by an accident, your Gap Insurance provider company is there to assist you in getting the outstanding balance to pay up the finance company. However unless your vehicle is written-off, you might not know - What it is? Who should buy it? Where to buy a Gap Insurance Policy?
What is Gap Insurance and why buy it?
To most vehicle owners, standard vehicle insurance is enough to cover the expenses of repairs or replacement if their car is damaged or stolen. Whereas your, insurance company is probably insufficient, in case of total loss. For instance you buy a car worth £24,000, excluding other expenses and taxes worth £2000 and about a year later, your vehicle gets stolen. In that case a regular insurance company is supposed to pay the current cash value of the vehicle, but not the current loan balance. It needs no further explanation that the value of your new car, no matter whether owned or taken on lease drops significantly.
A Gap insurance policy includes cover for your insurance deductibles. Gap insurance guarantees protection when the loan exceeds the current value of the car. You’d be wrong if you think GAP insurance would provide you the entire loan amount. Instead, it is designed to cover only the purchase price of the vehicle or the outstanding balance of the finance deducting insurance settlement.
Where and how to buy GAP Insurance?
You can purchase your Gap Insurance policy directly from us @ Leasewell. We charge a flat fee, however the cost varies owing to their different agreement type, value of vehicle, Length of term etc. Ask your Sales Executive for a quote based on the vehicle you have enquired about.
Should You Buy Gap Insurance?
Unfortunately, your new vehicle will lose its shine and value over time. And if your vehicle has covered more than 35,000 miles, your insurance company is likely not to offer you the depreciated value. And this is where exactly Gap insurance can assist you.
Now since we have already discussed Gap insurance and its significance, let’s take a closer look at - what is not covered by Gap Insurance
Continuous flow payment in case you lose your job or suffer a disability
Compensation for necessary repairs or vehicle replacement if need be
Lease a vehicle if you stopped using your car due to damage or accident.
Our sales team you can give assistance over the phone if you’d like further information on the features of the policies and anything more that you’d like to know. At Leasewell we offer Two Main Kinds of Gap Insurance Policies.
1. Return to Invoice covers the difference between the outstanding insurance payment and the original purchase price of the vehicle. This type of policy can be bought for both old and new vehicles. Though it is hard to pay a good amount for finance agreements, but it also cannot be overlooked that your car will lose its value over time. And here the Gap insurance company will be there with you to pay the difference between your cars recent value and the outstanding payment amount - starting at only £350 One off Payment
2. Finance Gap Insurance – GAP only covers for the difference between the vehicle insurance payout cost and the outstanding finance deal. This decreases the market equity risks and inflation enabling you not to be in a position of having to make a monthly payment for a vehicle you no longer have. Gap Insurance Policy will provide protection to your vehicle, no matter whether you are an owner or leaser - starting at only £299 One off Payment
Leasewell (UK) Limited is an Appointed Representative of which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Leasewell (UK) Limited to act as an agent on behalf of the insurer for insurance mediation activities only. Automotive Compliance Ltd,