Why You Need GAP Insurance: Protecting Your Investment in Your Vehicle
Buying a new car is an exciting experience, but it can also be a significant investment. You want to make sure that your investment is protected, especially in the event of an accident or theft. That’s where GAP insurance comes in.
GAP insurance stands for Guaranteed Asset Protection insurance, and it’s designed to provide coverage in the event that your car is written off or stolen.
Here’s how it works: if your car is deemed a total loss (i.e. it can’t be repaired), your regular car insurance policy will pay out its market value at the time of the loss. However, if the market value is less than what you still owe on the car loan, you could be left with a “gap” in coverage. This is where GAP insurance comes in – it helps to cover the difference between what your car insurance policy pays out and what you still owe on your car loan.
What does GAP insurance cover?
So, why do you need GAP insurance? Here are a few reasons:
- Protection in the event of a total loss: If your car is written off or stolen, GAP insurance can help you avoid being left with a large bill for the remaining balance on your car loan.
- Peace of mind: Knowing that you have GAP insurance can give you peace of mind, especially if you’re still paying off your car loan.
- Lower risk of negative equity: If you’re worried about being underwater on your car loan (i.e. owing more than the car is worth), GAP insurance can help reduce the risk of negative equity.
So, why do you need GAP insurance? Whether you’re buying a new car, still paying off your car loan, or just want to protect your investment, GAP insurance can help you avoid financial stress in the event of a total loss. Consider getting GAP insurance to ensure that you’re protected, no matter what.
Riviera offer Specialist GAP Insurance for Taxi, Car or Van with a wide variety of cover options available. Too make it as seamless as possible for customers you can quote and buy online by visiting: https://www.rivierainsurance.co.uk/gap-insurance-quote/