Why Is GAP Insurance Important?

So, you're probably wondering, why is GAP Insurance so important? 

Let’s set the scene; imagine you've just picked up your dream car - shiny, new, and just perfect. But here's the thing, cars are notorious for losing value the second they hit the road.

MotorEasy gets how vital this is and offers tailored GAP Insurance to suit different needs. Whether it's covering the difference on what you owe, or making sure you don't lose money on what you paid, it’s all about keeping you financially afloat when your car’s value takes a dive.

What is the Importance of GAP Insurance?

You've made a significant investment in your vehicle, and naturally, you want to protect it. But did you know that as soon as you drive your car off the lot, its value starts to depreciate? In the unfortunate event of your car being stolen or written off, you might find that the settlement from your standard car insurance policy only covers the current market value of your car, not the amount you originally paid or what you may still owe on finance.

This is where GAP (Guaranteed Asset Protection) Insurance comes in. It's designed to cover the 'gap' between the insurance payout and the amount you initially paid for the car or the outstanding finance. This means you won't be left out of pocket or still paying for a car you no longer have – a financial safeguard that truly answers why GAP Insurance is important.

Understanding GAP Insurance

What is GAP Insurance? The purpose is quite straightforward. It's an additional policy that works alongside your standard comprehensive car insurance to cover any 'gap' in value.

How does it work? Imagine you purchase a car for £20,000. A year later, the car is stolen or written off, and your car insurance company values it at £15,000. If you have a GAP Insurance policy, it would cover the remaining £5,000, ensuring you're not at a loss.

Types of GAP Insurance Include:

1. Return to Invoice (RTI): This covers the gap between your insurance payout and the original invoice price of the car, ensuring you get back what you paid regardless of depreciation.
2. Return to Value (RTV): RTV provides coverage for the difference between the insurance payout and the value of your car at a specific point in time, typically when the policy was bought.
3. Finance GAP Insurance: If you have financed your vehicle, this covers the gap between your insurance settlement and any outstanding loan amounts or financial obligations related to the car, effectively clearing your debt.
4. Contract Hire: Specifically tailored for leased vehicles, this type of GAP Insurance covers the difference between the insurance payout and the amount required to settle the lease agreement.

No matter which type of GAP Insurance you choose, you can rest assured that you're protecting your vehicle investment comprehensively. It works alongside your primary car insurance, enhancing your financial resilience against unforeseen events that could otherwise be costly. With MotorEasy, obtaining the right type of GAP Insurance for your needs is simple.

Complementing Your Standard Car Insurance with GAP Insurance

It's important to understand how GAP Insurance functions as a complement, not a replacement, to your standard car insurance. Your standard policy is the foundation - it covers damage to your car, and liability for damage to others, among other things. GAP Insurance is like an extra piece of armour, stepping in to protect your finances when the settlement doesn't match up with your car's value or what you owe on it.

Why Every Car Owner Should Consider GAP Insurance

Every car owner should consider GAP Insurance because no one is immune to theft or accidents. The emotional stress of dealing with a lost or damaged car is enough of a burden - financial strain shouldn't add to it. Whether you lease your vehicle, have a loan on it, or have invested a significant amount in a new ride, GAP Insurance stands as a vital financial backstop.

Is GAP Insurance Worth It?

Consider GAP Insurance as an investment in your financial security. While it's an additional cost, it can prevent a major financial loss in the event your car is written off or stolen. When weighing the cost of GAP Insurance against the potential risk, it becomes clear that the investment is worth the peace of mind it brings.

Common GAP Insurance Myths

There are myths surrounding GAP Insurance that dissuade car owners from taking advantage of its benefits. Let's debunk some myths:

Myth: GAP Insurance is only for new, expensive cars.
Fact: Any car can depreciate quickly. GAP Insurance is beneficial for various vehicles, not just new ones.

Myth: I'll never need GAP Insurance; my car won't be written off.
Fact: Accidents and thefts are unpredictable. It's better to be safe than sorry.

Evaluating Your Personal Need for GAP Insurance

To evaluate your need for GAP Insurance, ask yourself:

• How much do I owe on my car loan or lease?
• Would I be able to afford the difference if my car was written off tomorrow?
• How much has my car depreciated since I bought it?

Assessing your risk and the potential financial impact can help you decide if GAP Insurance is right for you.

How to Get GAP Insurance with MotorEasy

Getting GAP Insurance with MotorEasy is straightforward. Simply visit our website, navigate to the GAP Insurance section, and start your quote. We'll guide you through the process, ensuring that your policy is tailored to meet your needs.

Protect Your Vehicle's Value with MotorEasy GAP Insurance

Don't wait until it's too late to think about the 'gap'. Secure your car's value with MotorEasy's GAP Insurance today. It's a simple step you can take right now for immense peace of mind in  the future. Get your quote today and shield yourself against the unexpected.

 When it comes to GAP Insurance, it's not just about covering a vehicle; it's about protecting your financial well-being. With MotorEasy's unique offerings and the added benefits that come with our policies, there's no better place to get GAP Insurance. Take control of your car's financial security with MotorEasy and drive with confidence, knowing you're fully protected.