It is quite common for some motorists to claim that GAP insurance is not worth it, but they are putting themselves at considerable risk without this protection in place. First, what is GAP insurance? Well, it’s an insurance policy that bridges the gap between what your car is valued at and what you owe on it. Below are 5 important reasons why you shouldn’t pass on gap insurance – keep reading to find out what they are.
1. It Could Save You Thousands
The main benefit of GAP insurance is that it could save you thousands of pounds if the car is written off or stolen and not recovered. Your insurer will only pay what it is worth now, which could see you out of pocket by thousands of pounds due to depreciation; even if the accident isn’t your fault. Companies have reported paying out thousands of pounds for cars that have been hit while stationary.
2. It is Low Cost
While GAP insurance is another motoring cost to cover, you will find that it is low cost and does not add on too much to your monthly outgoings. Many ask “is GAP insurance worth it?” And when you consider how much it could save you, this means that it is a sensible investment that is worth the low cost.
3. It Provides Peace of Mind
Another important benefit is that GAP insurance provides peace of mind. When you know that you will not take a financial hit in the event of a write off, it will help you to feel more confident behind the wheel and not have to worry so much about replacing a car if it is written off.
4. Won’t Leave You Paying for a Car You Don’t Have
For those that have a finance deal, getting involved in a write off can be incredibly frustrating without GAP insurance (especially if the accident was not your fault). This is because you will have to continue making payments out of your own pocket for a car that you no longer are able to drive, so it can make it challenging to afford a replacement and could create a difficult financial situation.
5. Accidents & Theft Are Common
Following on from this, you will find that car accidents and theft are both common in the UK. You could be involved in an accident that leads to a write off even without doing anything wrong while cars that are stolen and never recovered are also declared a write off. Obviously, being involved in a serious accident or having your car stolen can be distressing enough, but with GAP insurance you won’t have the added financial burden to worry about.
As you can see, there are 5 very good reasons why GAP insurance is worthwhile. It is a type of cover that every motorist should consider, especially those driving newer cars and/or those with a financial deal that have a lot to lose in the event of a write off.