When you buy a new car, you’re often offered GAP insurance. While it’s certainly worth having, dealerships aren’t typically the best place to get it. You’ll end up paying much more than you need to and you’ll also find they don’t really explain the cover very well.
If you’re wondering what on earth GAP insurance is, you’re not alone! Below, you’ll discover everything you need to know about this type of insurance and why it’s worth investing in.
What is GAP insurance?
GAP insurance is a separate type of insurance which aims to cover the difference between what you paid for the car and what your insurer will pay out. You may already know that when driving out of a dealership in a brand-new car, it’s value typically depreciates by as much as a third. This is bad news if you end up having to replace the car after theft or an accident.
The problem is, your insurer will only pay what your car is worth on the current market. This could end up being a lot less than you actually paid for the car. GAP insurance will make up the difference, ensuring you have the full amount what you paid for the car, in order to replace it.
Should you get it?
Most people could benefit from investing in GAP insurance. Although it isn’t essential, it could prove extremely useful if you would otherwise be unable to afford to replace the vehicle.
It’s also a good investment if you’ve taken your new car out on finance. You’ll still need to pay the finance company and if your insurer doesn’t cover the entire cost, you’ll need to make it up yourself. GAP Insurance can help pay off the finance so you’re able to get a new car.
Where is the best place to get GAP insurance?
Although most dealers will offer you GAP insurance, it’s actually better to go with a direct company. Choosing such as KIA Warranty provides cheaper rates and much more reliable cover.
It’s always worth comparing your options, especially online. Read reviews of the different insurers and see which one would be better to go with.
Overall, GAP insurance isn’t a necessity, but it can prove invaluable if your car gets written off. If you want to benefit from a brand new car if yours is written off, it’s worth looking at taking out GAP insurance from a reliable supplier.