Compare Gap Insurance quotes in minutes with Buckingham Insurance
Avoid getting into unmanageable debt – make sure your car is insured for its full purchased value with Gap Insurance.
What is Gap Insurance?
Gap insurance covers the difference between the price you paid for your car and the price that an insurer will normally pay out for if your car is written off in an accident, or stolen and never recovered.
For example, imagine you take out a loan to buy a new car that costs £20,000. A year later, your vehicle is totaled in an accident. You still owe £18,000, but your insurer now values the car at only £15,000 – meaning you lose £3,000. This is a frequent problem for car owners because cars – especially new vehicles –depreciate very quickly in value.
Your standard Car Insurance will give you essential coverage for accidents and damage, but without the full coverage provided by Gap Insurance, you could find yourself in debt for a car that no longer exists!
Gap Insurance was created to give car-owners peace of mind in the event that their vehicle is declared a total loss by their insurer. However, it can be tricky to find a decent Gap Insurance policy that delivers what it promises. At Buckingham Insurance, we have experience of the market and can get you quotes for quality Gap Insurance cover in minutes.
Do I need Gap Insurance?
The value of a new car can depreciate between 50 and 60% of its original price in the first three years of ownership. That means that if you were to lose your car, either to an accident or theft, you could potentially find yourself seriously out of pocket – because your insurer would pay out a price lower than the loan you were still re-paying.
Gap Insurance can benefit any car owner, regardless of the size or brand of your vehicle. However, it really comes into its own for new cars that have been bought on credit.
A word of warning. Some Gap Insurance policies – typically those bought cheaply online – include conditions that make it difficult for owners to obtain the expected payout. For this reason, if you’re looking for Gap Insurance, it’s best to go with an experienced professional broker, who knows the market and has experience of the claims process.