GAP INSURANCE EXPLAINED
Let's start with the basics ---> GAP stands for "Guaranteed Asset Protection".
Your probably here because your car or van dealer is trying to persuade you to ADD ON Gap Insurance to the finance package they put together for you.
Well is it worth it ?? YES GAP Insurance IS AN EXCELLENT CHOICE.
Guaranteed Asset Protection (GAP) insurance is designed to bridge the “gap” between the market value of your car at the time it is stolen or written off, and the amount you paid to buy it.
Insurers use the market value of your car to work out how much to pay out on a “total loss” claim, which is when the car needs to be replaced entirely. Cars up to 15 years old depreciate in value over time, so this value may be considerably lower than what you originally paid for your car, or what it would cost to purchase a replacement vehicle.
GAP insurance is used to cover the difference between what your car insurance provider pays out and either the original value of your car or your remaining debt from a leasing agreement or loan.
Depreciation represents the greatest vehicle cost, after fuel expenses
