GAP insurance
Author: Adeel
GAP or guaranteed asset protection insurance covers the shortfall between value of a car and what you owe on it. It is usefull if your car is stolen or have to be scrapped while the owner is still making payments.
Example
Theory can be bit tricky,so to cut long story short,see the following example that will highlight significance and role of GAP insurance.
You buy a new car for £20,000.
Down payment £500
Monthly payment £350
Six months after this your car i involved in an acident and declared a complete write off.By now you still owe £17,400 but your insurers pay you at market value a sum of £16,500. In thiis scenario there is a short fall of £1,100 which comes out of your pocket unless you have got GAP insurance.Most people take a comprehensive policy and sleep in peace till a contingency happens shattering their dreams.Remember insurers pay you only market value of your car and left you facing financial consequences of the difference between market value and amount you owe.So here comes GAP insurance comes into play to save you from any financial loss.
WHO SHOULD GET GAP INSURANCE?
1 Gap insurance for buyers
GAP insurance for buyers is extremely important if they owe more then value of car or if you make a low down payment,if you buy a high value new car ( as they depreciate in value more swiftly) and so they need Gap insurance cover to save them in case of any eventuality.
2 Gap insurance for lessors
In the case of a lease, although you don’t own car straight away, but still lesse will be responsible if it is stolen or written off. Because lease down payment and monthly installments are significantly lower as compared to total value of the car so leasing company can even demand to have Gap insurance as a must before finalising lease agreement.
For further illustration and more feedback of guaranteed asset protection by HMRC,check out this direct link to their website on www.hmrc.gov.uk.
How to get cheap GAP insurance
Most of the times, car dealers try to sell it which is usually a rip off.As they sell you while you are in a showroom,they will make you to accept any quote.To save you from this hassle,we have partnered with cheapest GAP insurance provider of the UK.They give you following peace of mind guarantee.
“Ala.co.uk insurance brokers supply probably the cheapest GAP Insurance online in the UK and up to 75% cheaper than any dealer quotation.
If, however, you are able to find cheaper GAP Insurance elsewhere for a comparable product, we guarantee to beat the price by 20% of the difference!
Please be assured that by being the cheapest, in any way means we supply an inferior product;
* All our policies are underwritten by a UK insurance company
* All claims settled within 48 hours of the vehicle being declared a Total Loss
* All our policies are covered under the FSA Compensation Scheme
* A number of leading UK companies use our system, e.g. Autotrader and JCB Insurance amongst 120+ other brokers and dealers”
TO apply for GAP insurance for car,van,motorcycle,scooter or for company fleets click HERE.
To see contact details of 14 UK insurers e.g. comparison sites,online brokers and other insurance companies click HERE.
To search for breakdown cover to find out best deal at best price and check from these 9 providers,click HERE.
We have detailed information on CAR BUYING and CAR MAINTAINING (explains you everything about MOT,how to reduce premiums with insight of how insurers quote you premiums,car servicing and maintainence tips etc.etc.) other then some general posts like cheap shopping tips and hotlinks to discounted pages on AMAZON.
Tags: GAP insurance for cars