What is GAP insurance?
Well, in the event of an accident resulting in your vehicle being written off:
Guaranteed Asset Protection (GAP) Insurance covers the difference between any outstanding loan on the vehicle and the current market value.
Return To Invoice (RTI) Insurance covers the difference between the market value of a car, and the amount you originally paid for it.
This is often sold by the car dealership at extremely inflated prices and added into your finance agreement. It is advisable to ask exactly how much you are paying for this insurance before agreeing to it. The dealership will often start at an inflated figure of say £399 and gradually drop the price to make you believe you are getting a great deal.
We are different! We use a calculator that factors in the invoice value of the car, its current age, how long you want to protect this investment and the worst possible book value during this time. These 4 details give us your price and to date we have been cheaper than the dealership every time, often up to half the price!
An example of how this works:
If your car was written off at anytime within the next 3 years you would only be given the book value to buy something new. If you took out GAP insurance you will receive a combined payment of the full £18,000 at a cost of £168. That’s less than £200 to receive up to an additional £7000 should your vehicle be written off. This can be paid up front, monthly with your car insurance or separately, whatever suits you.