It’s well known that cars depreciate in value as soon as they’ve left the forecourt, and they fall between 50% and 60% in value within the first three years of ownership. If a car is lost, stolen or written off, some insurers will only pay out the current market value of the vehicle – which can leave drivers out of pocket and without a car.
GAP insurance bridges the 'gap' between the insurer's settlement figure and the price originally paid for the car, leaving drivers with no financial shortfall.
Sabine Williams, head of Motor at Admiral, reveals the 10 most common issues drivers are confused about when considering GAP insurance.
“Having your car written off or stolen is an unfortunate, inconvenient and often stressful position to be in and finding out you’re actually out of pocket - even when your insurance pays out - feels like rubbing salt in the wound.
“The overriding benefit GAP insurance offers drivers is the peace of mind in knowing they won’t be suffering a financial shortage, as well as being without a car.”
“Many people don’t know what GAP insurance is, and even if they have heard about it, a lot of people don’t know exactly what it is, why they need it or how they can benefit from it.”