We know there may be plenty to take in when you are looking at a Gap Insurance policy. We have recently looked at the insurance underwriters who actually back the cover, and this is an importnat issue. The insurer is going to authorise your claim, and it is comforting to know they are an expert in the field at least!

However, this is not the only consideration when looking at a Gap Insurance policy, look at some other aspects.

Gap Insurance Questions 

Lets start with an obvious one:

“Which type of Gap Insurance is best for me?”

Well there are several things to think about here, firstly which types of Gap Insurance are available to you? If you have a vehicle on contract hire for example, you can only look at a contract hire gap policy as you cannot ever own the vehicle.

If you do own the vehicle, or have it on a form of finance whereby you have the option to buy the vehicle at the end, then you have other choices. Finance Gap, if you are on a form of Hire Purchase or Lease Purchase, would simply clear any financial shortfall. You could consider Return to Invoice or Vehicle Replacement Insurance if you had paid cash or had finance on the vehicle.

Gap Insurance questions

Gap Insurance questions

It is crucial that you look at each level of cover carefully, as they all work in different ways. You could have two customers who have bought the very same vehicle, on the very same deal and have a different opinion on exactly which type of Gap Insurance is best for them.

Ultimately, the choice as to which gap insurance is yours to make.

Another common question is

“Which Claim Limit do I need on the policy?”

Now this does require a little thought, and even a specialist Gap Insurance expert would struggle to give you a definitive answer on this one.

There are two issues with this, firstly you do not know how much your vehicle will depreciate in value over a period of time. Therefore, if you looked at a Return to Invoice policy, can you really say how much a £20,000 car can lose in value over 4 or 5 years?

No!, however, the online Gap Insurance brokers do offer bands of claim limits to chose from. Clearly a £5,000 limit may not be sufficient for RTI over 5 years, but a £10 or £15,ooo limit may be fine.

The type of gap insurance policy you have also comes into play. For example, you may not need the same claim limit for a finance gap policy as you might for a vehicle replacement policy.

Again, care is needed in ensuring your claim limit is not going to hamstring the type of cover you want.

Careful with your Gap Insurance

Bearing in mind this is a specialist insurance product, it can really pay to talk to an expert on this. Your motor dealer may well only offer one type of Gap Insurance, and they will understand this well no doubt. However, they may not be able to provide you with a full picture on your choices. If you call one of the Gap Insurance specialist brokers in the UK, they can run through your options, and even some of the bigger ones can give you a comparitive quote from two or more policies.

Careful consideration on your Gap Insurance cover can pay dividends if you ever need to make a claim.




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