Bonjour lecteurs! What type of insurance do you have to protect your family? If you’ve recently purchased a a new car, it’s worth getting it insured and this is when a Guaranteed Asset Protection (GAP) insurance comes into play. Such a cover is designed to fill in the ‘gap’ between the amount your standard car insurance will pay out if your car is written off or stolen and the amount you originally paid for the vehicle or still owe on your finance agreement. If you have never looked into it, let me explain why is GAP Insurance Worth It For Your Family.
What is GAP insurance?
GAP insurance protects the borrower if the car is written off or totalled by paying the remaining difference between the actual cash value of a vehicle and the balance still owed on the financing.
Essentially, GAP insurance covers the difference between the insurance payout and the amount you either paid for the car or what you still owe on a finance agreement.
Why would you need a GAP insurance? There are many benefits of taking out such a cover, especially when you have a famille.
The Benefits Of a GAP Insurance
The first benefit of a GAP insurance is that it protects you against the depreciation of your car. Did you know that cars can lose up to 60% of their value within the first three years? As soon as you drive your vehicle off the dealer, it’s already losing value.
Furthermore, a GAP insurance also gives you peace of mind when you bought your car via a loan or a lease. If your insurance payout doesn’t cover the outstanding finance amount, you would need to continue making payments on a car you no longer own! The GPA insurance can cover you and pay out the remaining balance on your finance agreement.
Un autre plus? With a replacement GAP Insurance, you will be covered to replace your car at today’s prices. This is particulièrement useful if the specific make and model of your car has increased in price since your purchase.
Not Just For New Cars
Interested? La bonne nouvelle is that a GAP insurance isn’t just for new cars. Indeed, you can also get one for nearly new and used vehicles.
A GAP insurance is relatively affordable and gives you extra financial protection. It is a coast-effective way to safeguard your investment instead of carrying on to pay for something you don’t owe anymore!
When Should I Consider GAP insurance?
You might want to look into it as soon as you bought a new car because it will protect you against any significant loss.
It’s also a bonne idée to invest into a GAP insurance if you are using a loan or a lease to buy your car.
Things To Consider Before Getting It
Before you go for it, make sure you understand the policy you are signing. Indeed, GAP insurance policies can vary, too. I would double-check any limitations or exclusions to it.
You can purchase a GAP insurance from pretty much any car dealership. But shop around as independent insurance providers might offer cheaper options.
Consider the duration of coverage you want as they can last up to 5 years. Think about how long you are planning to keep the car and choose the best policy for your situation.
Whether you’ve purchased a new or nearly new vehicle, financed or leased it, getting a GAP insurance can give you peace of mind for you and your family. You won’t be out of pocket if the worst happens. I would especially look into it if you decide to opt for a BMW or a Mercedes as they are among the most stolen cars in the UK.
Investing in GAP insurance might not be the most exciting part of buying a car, but it could be one of the most financially prudent decisions you make. For more information on the best GAP insurance quotes, contact Protect Your Family today.
Collaboration