Gap Insurance

Here at www.InsSure.co.uk we work with leading GAP underwriters to create customized gap insurance products. Our products are customized in accordance with the feedback that we receive from our customers. Our aim is to strive to deliver to you gap insurance products that meet your needs. We currently offer gap insurance for all motor vehicles. Our motor vehicle gap products are split into three distinct classes. We over vehicle replacement gap insurance, return to invoice gap insurance and return to value gap insurance. The differences between these are summarized below:

Vehicle Replacement Gap Insurance

This product is the most comprehensive of our gap insurance cover products. It provides absolute piece of mind for you by totally guaranteeing you vehicle in the event of an insurance write off. The cover replaces your vehicle with a brand new current model of your vehicle. Our vehicle replacement gap insurance is affordably priced and starts from just £4.99 per month.

Return to Value Gap Insurance

Return to Value gap insurance protects your vehicle by fixing the value of your vehicle at the date on which the gap cover is taken out. In the event of an insurance write off you will be paid a cash sum equal to the value fixed at the date you purchased our gap insurance. You are then free to use the money to buy any vehicle you want. Our cover starts from just £3.99 per month.

Return to Invoice Gap Insurance

Return to Invoice gap insurance pays out to you an amount equal to the amount that you paid for your vehicle when purchased. The product is only available within three months of the date that you purchased the vehicle. This popular product is designed to give you the piece of mind of knowing that in the event that you vehicle is written off by your insurer that you receive the full amount that you paid for the vehicle back. Gap insurance is insurance purchased for cars, trucks, vans, or other vehicles. The insurance is to protect against loss of the vehicle due to a number of situations that can occur. It is the law in the UK to have car insurance, but you are not necessarily required to have gap insurance. Gap insurance is like collision and comprehension in that it is elective. It is still a wise idea depending on your situation.

Gap Insurance Coverage

Gap insurance is meant to protect you in the event that you have to write the vehicle off. A vehicle write off occurs because the damage in an accident or other situation requires repairs greater than the car is worth. Gap insurance is even more restrictive than just a general write off. It is meant for vehicles that are on loan or lease. In other words, say you purchased a vehicle and ten days later you were in an accident. Depreciation of a vehicle occurs quickly. Just by driving it off the lot you have lost value in the car. The incident that occurred damaged the vehicle requiring repairs greater than the value. You may also have a loan on the vehicle.

Your car insurance pays out for what the vehicle is considered to worth when it is written off. This does not mean that the insurer will pay off the entire amount you owe on the loan. If you do not have gap insurance this could mean you are paying out of pocket to cover the amount the insurance did not cover on the loan.

Each year about half a million cars are stolen or vandalised and therefore written off. There are even more accidents in a year, which can lead to a total vehicle loss. It is not fair that you should have to be responsible for paying the loan back in this instance. Unfortunately there is little you can do about it other than to have gap insurance to cover an accident, theft, and total vehicle write off.

Points to Consider before Purchasing Gap Insurance

In the UK a third of crime incidents involve cars. Every minute there is a car stolen, and only 33 percent of those vehicles are ever found. Cars will lose 77 percent of their value in 3 years. Most motor insurance settlements are lower than the price you paid for the car. Gap insurance can protect against all of these incidents.

As explained in the summary above, there are three types of gap insurance: return to value gap, return to invoice gap, and vehicle replacement gap. It is imperative that you choose the right coverage regarding gap insurance so that the issue more likely to occur to you can be covered.

Return to value gap insurance is coverage that most car owners choose. It is attainable after 7 years of purchasing the car. You can obtain the insurance whether you paid cash or had a loan on the car. It is also going to work with a car hire or leasing agreement. Return to value gap insurance is going to pay the difference between what the motor insurance company offers you and the value of your car today. For example if your car is listed at £10,000, but the motor insurance company will only pay £5000, the gap insurance will cover the rest.

Return to invoice will give you protection against a declaration that your car is a total loss. You will get paid the difference between the motor insurance and the original amount you paid for the car. Return to invoice is great for new car buyers. This type of gap insurance fits within the example we offered above.

Vehicle replacement gap insurance is the last type you might want to consider. This insurance does protect against total loss. Under this type of policy you will receive the difference between what a new vehicle costs and what the motor vehicle insurance paid out. For instance you purchased a vehicle for £20,000. That same vehicle is now £25,000. Your motor insurance covered half. The gap insurance will cover the rest of the £25,000 to get you a new vehicle.

Depending on which insurance policy you take for gap insurance you will see a variation in premium. Vehicle replacement gap insurance tends to be more expensive than the first gap insurance we discussed. This is due to the value of the car and the amount of money the insurance will have to pay out in the event that something occurs to the vehicle you are driving.