Gap Insurance is really not that difficult to understand, in fact we would say it is easy!
(PRWEB UK) 8 July 2012
If you are looking to buy a new car in the UK soon, then it is very likely you will be offered an insurance product called Guaranteed Asset Protection, or Gap Insurance for short. The basis of the product is that your vehicle will lose value over time, and if it is in an accident, or stolen, and 'written off' by your motor insurer then you could lose a significant amount of money. This product can help protect against this.
However, Gap Insurance suffers from a lack of understanding from the general public. Recent insurance changes have compounded this, leaving some completely bemused about this type of cover.
The team at EasyGap are specialists in the field of vehicle gap cover, and they offer some simple advice as well as run down of the basic types available.
"Firstly, you need to consider how you are buying your vehicle. Some circumstances may allow for a choice of cover, some may only have one. For example, if you secure your vehicle by a contract hire style lease then you will need specific contract hire gap cover, which simply covers outstanding rentals on your agreement.
If you have a hire purchase style finance agreement then you could consider finance gap, which will cover any shortfall between your vehicle value and the outstanding finance settlement.
You could also choose a return to invoice type cover, which protects between your vehicle value and the original invoice price you paid. This may suit finance or cash purchases, and if often the style offered by a motor dealer.
You may also opt for a vehicle replacement insurance policy, which instead protects to the cost of replacing your vehicle with one of equivalent age and specification. So if you bought your policy for a new car, and the cost of the equivalent new car is now higher, the VRI Gap can cover this too.
So the choice of gap cover is basically between those four. The difference being simply what level they will protect you to."
EasyGap have been providing Gap Insurance products in the UK for many years, and also have noticed the shift towards people sourcing the cover online in recent years.
"It used to be the case that gap was only offered by motor dealers, however online brokers now offer more choice and normally at a great saving from premiums offered by a motor dealer. We have seen a huge rise in online business even in difficult economic times. Clearly consumers are happy to look on the web, which is now taken for granted in the internet age we live in."
So if you are looking for a new car in the next few months, you may want to look online to find the best deals possible on Gap Insurance.