What Is Guaranteed Asset Protection Insurance (GAP) Insurance? Gap Insurance is a product that many people are looking into purchasing with little understanding about what they are buying.
So what is Guaranteed Asset Protection Insurance?
When you buy a vehicle, especially a new one, the depreciation of the vehicle can decrease quickly. This means years down the line your car will only be worth a percentage of what you originally paid.
When your car is written off the insurance pays you a lump sum to help you cover the costs of replacing your vehicle. However due to the depreciation of your vehicle this is not always the same amount as what you invested in the vehicle. This is because insurers will only pay out the value of the vehicle at the time of the incident, not its original price. Gap insurance can help to protect this difference.
There are three different levels of gap cover. GAP, RTI (Return to Investment) and RVI (Replacement Vehicle Insurance).
Standard GAP Insurance
Standard GAP Insurance is primarily for cars that are on finance. When your lease car is written off the insurance pay-out will not cover the amount owed to the finance company. In this event, GAP Insurance will pay the difference of the insurance pay out and how much is owed to the finance company.
RTI Insurance
RTI Insurance gets you back to the original price you paid for the vehicle. For example if you buy a vehicle for £10,000 and 3 years down the line it is written of, the insurance may only pay you £6,000 which is what the vehicle is worth at that time. Gap insurance will help to cover the gap between what the insurance pays out and what the original invoice price.
RVI Insurance
RVI has the same setup as RTI however with one key difference. This policy will pay to replace the vehicle for a similar vehicle at the point of when it was first purchased. This means it will be the same make and model, the same year and include the same features such as air conditioning, in-car entertainment and so on.
If you have any hesitations about taking out Gap Insurance today then call our team on 01613882550. They will be able to answer any questions you have about taking out Gap Insurance. They can also advise you on what is the best policy for you.
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