Guaranteed Asset Protection (GAP) Insurance is a specialised policy designed to protect you from financial loss if your vehicle is written off or stolen and the insurance payout does not cover the full cost of replacing it. This can happen if the value of your car has depreciated since you bought it, leaving you with a shortfall between the insurance payout and the amount you originally paid or still owe on a finance agreement. Becks Insurance Brokers in Brighton offer tailored GAP Insurance solutions to ensure you’re fully protected against this financial gap, giving you peace of mind when driving.

Comprehensive Financial Protection for Your Vehicle

When a vehicle is written off or stolen, standard car insurance typically only pays out the current market value, which is often less than what you paid for the car or what is left on your finance agreement. GAP Insurance covers this difference, ensuring you’re not left out of pocket. This type of insurance is particularly valuable for new cars, which can depreciate quickly, and for vehicles purchased on finance or lease agreements.

Features and Benefits

• Cover for Finance Shortfalls: GAP Insurance covers the difference between the insurance payout and the amount outstanding on your vehicle finance or lease agreement, ensuring you’re not left with a debt on a vehicle you can no longer use.

• Vehicle Replacement Cover: Some policies offer cover that bridges the gap between the insurance payout and the cost of replacing your vehicle with a new one of the same make and model, even if the replacement cost is higher.

• Protection Against Depreciation: GAP Insurance protects against the rapid depreciation of new vehicles, ensuring you’re covered for the full value, not just the market value at the time of loss.

• Flexible Coverage Options: Tailored policies that allow you to choose the level of coverage that suits your needs, whether it’s for a financed vehicle, a leased car, or a vehicle purchased outright.

• Applicable to New and Used Vehicles: GAP Insurance can be applied to both new and used cars, providing protection no matter what type of vehicle you drive.

• Peace of Mind: Provides financial security knowing that you won’t be left with a significant financial loss if your vehicle is written off or stolen.

What is Typically Covered?

GAP Insurance typically provides coverage for the difference between your car insurance payout and either the original price you paid, the amount outstanding on your finance, or the cost of replacing the vehicle. Typical cover might include:

• Finance GAP Cover: Protects you if your vehicle is written off and the insurance payout is less than the outstanding balance on your finance or lease agreement.

• Return to Invoice Cover: Covers the gap between the insurance payout and the original invoice price you paid for the vehicle.

• Vehicle Replacement Cover: Covers the gap between the insurance payout and the cost of replacing your vehicle with a new one of the same make and model, even if the replacement cost is higher.

• Depreciation Protection: Ensures that you’re covered for the full value of the vehicle as it depreciates over time, not just the current market value.

Exclusions might include voluntary termination of the finance agreement, non-compliance with the main vehicle insurance policy, or claims related to wear and tear. The specific terms and conditions will vary depending on your needs and the insurer. Becks Insurance Brokers will work with you to tailor your GAP Insurance policy, ensuring comprehensive protection that suits your specific circumstances.

To protect yourself from financial loss due to vehicle depreciation, book an appointment with one of our specialists here or arrange a quotation here.