When you are looking at purchasing Gap (Guaranteed Asset Protection) Insurance, it can be very confusing, as there are so many options, that consumers are sometimes overwhelmed by choice.
Gap Insurance has options available to you whether you paid cash for your car, or borrowed the money from a Bank, took out a Motor Finance Loan, or have chosen a Lease or Contract Hire Agreement to fund it.
So, what exactly is Gap Insurance? Well, there are three basic options. If your car is beyond repair the amount paid based on the value of the vehicle could be less than the outstanding balance on your loan, or what you paid for the car. Gap Insurance should cover the difference between the Insurer’s pay-out and the motor dealer invoice value, or the outstanding finance amount. This insurance is intended to cover the gap between the two amounts to ensure vehicle owners aren’t left out of pocket.