When you buy a new vehicle, the last thing you’ll think of is needing to replace it. You don’t want to plan for theft or a major accident, but with one extra insurance policy you can be fully covered for the worst outcomes.
In the event of a total loss or unrecovered theft claim, a Guaranteed Asset Protection (GAP) policy will pay out the difference between your vehicle’s purchase price and its market
value at the time of the claim. In other words, it covers the gap, ensuring you don’t suffer any financial shortfall.
Between your two settlements – from your comprehensive insurance and GAP insurance – you’ll receive the total amount originally paid for your vehicle (which can go towards a new vehicle), or the total finance amount, so you’re not paying for a vehicle you no longer have.* Also, GAP insurance applies regardless of who was at fault for the accident.
If it still seems like an unnecessary expense, here’s some points to consider:
- Vehicle thefts have risen by 61% in the last five years, and in the UK about 384,000 cars are written off annually.
- Some comprehensive insurance policies offer ‘new for old’ replacement in the first year of ownership. But if you’re not the vehicle’s first owner, this cover may not apply. If your renewal doesn’t fall in line with the purchase date, and you change insurers on the renewal date, the new underwriter may not offer ‘new for old’ cover, so check the terms of your policy.
- GAP insurance policies range from two to five years in length. If you decide to change your vehicle halfway through the policy term you can amend your cover or cancel and get a refund, provided no claim has been made.**
- GAP insurance premiums are a one off (unless paid for in instalments).
- IAM RoadSmart members and their families can buy GAP insurance through Cornmarket for cars, motorbikes and light commercial vehicles, provided the vehicle is worth £7,500 or more.
Uniquely, Cornmarket’s GAP insurance will provide a hire vehicle for up to 28 days while you wait for the settlements. There’s no excess, and we’ll reimburse up to £250 of your comprehensive insurance policy’s excess.
Call Cornmarket on 028 9044 5090 for a great GAP insurance quote.