What Is GAP Insurance and Do I Need It?
GAP Insurance, or guaranteed asset protection, can come in useful if your car is written off in an accident or stolen.
Stockton Kia has a wide range of asset protection options available to all of our customers, this includes:
- Guaranteed Asset Protection (GAP Insurance)
- Cosmetic Repair Insurance
- Tyre and Alloy Insurance
Each of these are designed to give you peace of mind with your vehicle if the worst case was to happen.
How does GAP Insurance work and what does it cover?
GAP Insurance can reinforce your own car insurance and can provide additional reassurance and financial support that you might need to get back on the road.
If there is an incident that results in your car being written off, whether that’s theft, fire or an accident, the payout from your motor insurer might be considerably less than the balance you owe to your finance provider. In fact, most motor insurance companies use the market value of the insurance of the day of the claim to determine the payout amount, which means that any depreciation of the car would be a loss incurred to you. This might leave you without a vehicle, plus the responsibility of settling any outstanding finance/lease balance!
If this happens, and your car is written off, GAP insurance would pay a maximum benefit which is equal to the discrepancy between your insurance payout, and the original purchase price of the car, or the amount you require to pay your early settlement amount. This insurance will also pay the excess deducted by your motor insurer.*
*Terms and exclusions may apply, please refer to your policy documentation for full details.
Is GAP Insurance a good idea?
Yes it is, if you end up needing it. When you finance your vehicle it may be a good idea to eliminate any surprise costs should the worst happen. If your vehicle is not financed, there is no reason to purchase GAP coverage.
GAP Insurance is there to give drivers who have leased/financed a car additional peace of mind should their car be written off due to theft, fire or an accident.
How long does GAP Insurance last for?
GAP Insurance can last between one and five years, but this will depend on your finance term and how long you plan to keep your vehicle.
You do not need to renew GAP Insurance, like you do general motor insurance, as this will last for the length of your finance agreement.
How long do I have to purchase GAP Insurance?
You can’t purchase GAP insurance at any time, most providers won’t allow you to buy a policy if it has been more than 12 months since you purchased your vehicle. Your sales advisor should make you aware of this additional insurance during the process of buying your car.
Here at Stockton Kia, we’d advise all of our customers to take the necessary precautions to look over both themselves and their vehicles. If you’ve got a question about GAP Insurance, or any of our other asset protection services, our team is more than happy to help!
Feel free to pop down to our Preston Park Industrial Farm site, or give us a call on 01642 632299 to have a chat and test drive some of our brand (or used) cars!