Why you need GAP Insurance
Guaranteed Asset Protection (GAP Insurance) is a term for a range of products that provides you with financial protection for your vehicle whether it is a car, motorcycle, motor home or van.
Your vehicle is a considerable investment and whether you have purchased it outright or funded the purchase via a finance or lease agreement, you need to be confident that your investment is protected in the unfortunate event that it is the subject of an insurance claim where it is declared a total loss.
Fully Comprehensive Motor Insurance provides excellent insurance protection but your motor insurer is most likely to settle a total loss claim to your vehicle based on the current depreciated mileage and condition, in many circumstances this will be significantly lower than the amount you paid originally or the amount required to settle your finance or lease agreement.
This is where a GAP insurance policy will benefit you. GAP Insurance will provide a financial protection over and above the offer made by your comprehensive motor insurer. The amount of benefit will vary based upon the type of GAP policy and terms and conditions of that policy.