If you are looking to buy gap insurance then there are several considerations you need to make before you even decide where to purchase your Gap Insurance Policy.
What to consider if you want to buy gap insurance
Firstly, and most importantly, what are you looking to cover with Gap Insurance?
Do you have your vehicle on a finance agreement, or contract hire, and just want to cover the outstanding finance on the vehicle? If so a simple Finance Gap Insurance policy may well be what you need.
Are you looking for the original invoice price back in the even of a claim? Then a Return to Invoice policy may well be just the ticket.
Perhaps you have paid only a modest deposit, and there maybe an advantage in covering both the outstanding finance, or the invoice price, Combined Return to Invoice Gap Insurance could be the answer.
With the amount of discounted deals around today, you may well be left short of the amount needed to buy the same equivalent vehicle if the same discounts are not available when you suffer a write off. One way to cover this is with a VRI Gap Insurance policy, or Vehicle Replacement Insurance.
You may have ‘new for old’ cover on your current motor insurance, a Deferred Combination Gap Insurance policy can deliver the same cover as Combined RTI Gap Insurance, but you can defer the start date for 12 months.
Which vehicle’s can you buy Gap Insurance for?
There are specialist covers available for Taxi’s, Motorhomes, Commercial Vans, Contract Hire, vehicles bought with negative equity carried over from a previous finance agreement and even used vehicles bought privately or owned for a long period of time and you simply want to protect the current value.
Once you decide what you want to cover, you need to look at how long and what claim limit you require. If you have a specific length finance agreement then you may want your Gap Insurance policy to run for that time. If you keep your vehicle for long time, a 4 or even a 5 year(only on Finance Gap Insurance) may be available.
If you want the flexibility to transfer your cover on to another vehicle, then transferable versions of VRI Gap Insurance and RTI Gap Insurance are available.
Once you have decided on the cover, get a quote from your dealer, then try any number of online brokers for an independant option. You will no doubt find that not only are the online brokers offering more flexible cover, but the savings on the premium prices can be huge.
Lastly, read the policies carefully. There may be small differences between insurers cover, and it is important you ask questions about the Gap Insurance you are buying.
Once you have made a decision, you can get cover in a matter of minutes. Lets hope you never need to use it, but nearly 600,000 vehicle owners every year may have benefited form Gap Insurance, lets hope they had your foresight to look into this cover!