Gap car insurance is actually a way to cover the difference, or ‘gap’, between the current value of your vehicle and any outstanding balance you have on your car loan. With this policy in place, you don’t have to worry about anything if you are involved in an accident with some of the loan still left to pay off on your vehicle.
The great thing about this particular insurance is that there are a number of products available to help you select one according to your unique needs and circumstances. For instance, ‘Return to Invoice +’ is a great choice because it provides you with a chance to cover the difference between the original invoice price of your vehicle and the total insurance pay-out. It covers the difference in case your car is written off.
‘Vehicle Replacement Insurance’ is another option available for someone who wants to cover the difference between the total motor insurance payout and the money required to replace a car to the same age. This is usually in case your car is stolen or written off.
In addition, you can find another GAP product, which is ‘Contract Hire Insurance’. This product is suitable for you if you need to meet the difference between the original payout of your motor insurance and the amount of outstanding rentals mentioned on the contract hire agreement.
You can consider your unique circumstances and pick a specific gap product for yourself. But, before you finalise your buying decision, don’t forget to use insurance comparison tools. When you use these tools to compare car insurance, you put yourself in a position to get a Gap policy for as low as £74 for three years’ worth of cover. So, don’t underestimate the importance of covering the gap in your motor insurance because without it, you may lose out financially.