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The last thing on your mind when you go to your local dealership to pick up a brand new car is what would happen if you write it off drive from the dealership. Many people think that with fully comprehensive insurance that they will not have a problem. In many cases, could not be further from the truth. Many new cars lose twenty percent of their value as soon as you drive off the forecourt, unfortunately comprehensive insurance will not cover this depreciation and you can find yourself in a situation where you need to find a few thousand just to replace the car “as for like. “This is exactly the situation where Guaranteed Asset Protection or GAP insurance will protect you against these potential losses.
So how exactly is returned to the account GAP insurance work? Basically as a result of the car written off RTI GAP Insurance will pay disparities Motor Insurance your payout and the amount you paid originally for the car. Let’s say you bought a new car for £ 19,995 and two years later the motor insurance company wrote the car off because it will be in an accident. Unfortunately they only offer you £ 10,000 settlement. If you’re RTI GAP Insurance (subject to overall requirements limit you choose when you take the policy out) GAP Insurance would pay £ 9.995 differences Motor Insurance Your payout (£ 10,000) and the original invoice price you paid for the vehicle (£ 19.995).
Many believe GAP insurance as just another way for the dealership to get hold of a little more of your hard earned cash. Indeed, dealers can charge a premium price for their policies, but do not let it bring you to this insurance. Search around online and you’ll quickly find lots of companies offering Gap Insurance at rates far lower than you might have been offered by the dealer.
With over five hundred vehicles each day to participate in accidents and up to half a million vehicles a year to be declared a total loss in the UK, RTI GAP Insurance is a great way to cover yourself and keep you away from the fear negative equity.
As with the other “peace of mind” insurance products, there is a good chance you may never need to make a claim, but for those who do not find themselves in a position that their car has been written off and the insurance payout covered expectations, GAP insurance can be answering their prayers. Everyone knows someone who has a horror story about losing money when they’ve had a car accident and in these times of global credit crunch, appear to be new cars lose their value faster than ever before, just one more reason to consider GAP insurance when you buy a new car. Before you sign on the dotted line to the dealership, however, make sure you do your homework, search the internet and you’ll save yourself from forty and seventy percent on a similar strategy.
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