When can vehicle replacement GAP cover come in handy?

When can vehicle replacement GAP cover come in handy?

If you only have standard motor insurance and your car needs to be written off or is stolen, you may be disappointed after receiving your payout if you were hoping to buy a new car. This is because most insurers will only pay you the current market value of your totalled vehicle and unfortunately, a car’s value decreases at an astonishing rate.

"Vehicle replacement GAP insurance can offer car owners peace of mind knowing that should the worst come to pass, and their vehicle is damaged beyond repair or taken by thieves, they can replace it with a brand-new model of the same kind of car."

If you’d like to avoid this scenario you might find vehicle replacement GAP insurance a useful option. Essentially, this kind of insurance is designed to cover any shortfall between what your insurer will pay out and the price of replacing the car with a vehicle that matches its original specification.

Vehicle replacement GAP insurance can offer car owners peace of mind knowing that should the worst come to pass, and their vehicle is damaged beyond repair or taken by thieves, they can replace it with a brand-new model of the same kind of car.

Points to consider before selecting your vehicle replacement GAP insurance

Prior to taking out a policy, calculate the cover limits you require for vehicle replacement insurance and consider how long you require this cap cover in place for.

When establishing the cover limit you need for your vehicle replacement gap cover, remember that vehicle replacement is an expensive business. Calculate how much you would have to claim in order to replace your current car if it is stolen or written off, exactly how much insurance providers offering this kind of GAP policy will cover will vary.

As for deciding on your length of cover, you’ll find most providers offering vehicle replacement gap insurance have available policies that cover up to either four or sometimes five years. However, remember the longer the policy for vehicle replacement gap cover, the more you will have to pay out.

How does replacement vehicle GAP cover work?

If your vehicle’s stolen or written-off, replacement gap insurance will cover any difference between your insurer’s pay out and the cost of purchasing your same car new. Effectively, it can even pay more than another form of gap insurance, Return to Invoice, as it also allows for the ever-increasing cost of vehicles in today’s market. This means that you will receive a large enough pay out from your vehicle replacement insurance and standard car insurance to be able to purchase a brand-new model of the car that you wrote off.

Are you still insured by replacement vehicle GAP cover if you are at fault?

With replacement vehicle gap insurance, you’ll be covered even when the accident that caused your car to become a write-off was your fault personally, however you will find that most policies carry certain exclusions. For example, you won’t have cover if at the time of the incident you were under the influence of drugs or alcohol. Before adding your signature to any replacement GAP cover policy, always read carefully through all documents to ensure you understand when you are covered and when you are not.

Do you require vehicle replacement GAP cover?

Cars are renowned for being assets that depreciate in value swiftly. As quickly as you assume ownership of a brand-new car and drive it away from the dealership, its drop in value has already begun. This means that if your vehicle is stolen by car thieves or is totalled in a collision you can find yourself taking a serious hit financially. A replacement vehicle GAP policy will cover your investment and ensure if unfortunate circumstances arise, you have protection in place.

Being a new car owner isn’t the only circumstance where this type of cover can be beneficial. If you’ve secured your car using a finance agreement and your vehicle is written off, you may find your car insurance pay out won’t cover the outstanding amount owed. When this happens, you can end up having to make continued payments for a car that you can’t even drive. However, a replacement vehicle GAP insurance policy can top up the amount paid by your standard car insurance and allow you to resolve such problems simply.

Specialists in replacement vehicle GAP cover

If you’re looking for peace of mind knowing you’re covered for any eventuality you might encounter you can trust our dedicated team at Direct Gap for sterling support. As a leading specialist in GAP insurance, Direct Gap help our clients make informed decisions and to make significant savings on the cost of GAP Insurance cover. Contact us today to find the right replacement vehicle cover for your needs.

James Cartwright

James Cartwright

James is an innovator in the Gap Insurance market with a longstanding understanding of automotive and Gap Insurance and consumer trends. In authoring these articles he brings together over 20 years of industry experience and a lifetime as an automotive enthusiast.

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