Why Guaranteed Asset Protection can help you
So what is Guaranteed Asset Protection, Gap Insurance or Shortfall cover? There are many names that are used to describe the type of protection we are concerned with on this site. Guaranteed Asset Protection, to give it its grand title, is concerned with one aspect of purchasing a vehilce-
I have insurance, why do I need guaranteed asset protection too?
As much as we hate to admit it, we all need our vehicles. Be it as a work tool, or as a means to go about our everyday life, a vehicle is an essential requirement for most in the world today. These represent a sizeable investment to any user, and understandably could create a financial risk if they were written off in an accident or stolen. It is also understandable that people want to insure themselves against financial hardship should the worst happen.
Fully Comprehensive Insurance will pay you your vehicles value if it is written off, but is unlikely to be able to cover the full investment you made at the time of purchase, why?
This is where Guaranteed Asset Protection can help. This form of cover can protect against some, or all of the depreciation your vehicle has suffered, and even against the inflationary pressures of replacing your vehicle.
So if i have Guaranteed Asset Protection, what are the chances of getting your vehicle written off?
So to put that in perspective, that means there is a 2-3% chance of your vehicle being written off each year. You may think that is not very high, however, the financial consequeces can be severe.
You may have to pay a finance settlement figure higher than the value of your vehicle when it is written off
You may have to dip into savings to replace the vehicle, and possibly at a time when you really do noy need to.
Having Fully Comprehensive Motor Insurance may not be as comprehensive as you think. Gap cover can provide you with a value protection (if you look in the right places) to provide you with the full peace of mind you may require. Guaranteed Asset Protection can help you with this.
To find out more about Guaranteed Asset Protection take a look a tour through our site!