Did you know that if your car was written off as the result of an accident, fire or theft, most insurance companies would only pay the current market value and not what you actually bought it for?
For example, if a car costing £10,000 was written off after 12 months, most insurance companies would pay out the current market value, which may only be £8,000.
If you wanted to replace your car, you would have to fund the difference. Or if you had taken finance to spread the cost of your car, then you could find that the amount received from your insurance company was less than the amount you still owed!!
This is where GAP Insurance comes in.
Gap Insurance will pay you the difference between the insurance companies settlement and the outstanding balance of your finance or the purchase price of the insured vehicle.