- What is Gap Insurance?
- Which Gap Insurance?
- Why buy Gap Insurance?
- Who can buy Gap Insurance?
- Why choose Easy Gap?
What is Gap Insurance and how can it help protect you?
The idea of gap insurance is nothing new and the concept itself is very easy to understand in that you are simply protecting yourself against any financial loss if your vehicle is written off. Simply making sure that if your vehicle is written off that you are not left financially out of pocket.
With an estimated 600,000 vehicles written off in the UK alone each year without any level of cover you could be left having dig deep into your savings, take on additional financial commitments or even worse being left to pay for a vehicle you no longer have.
Which type of Gap Insurance is best for you?
Before you buy online or consider a form of gap cover please take a few minutes to think about what you want your policy to do when you vehicle is written off. So what would you like to happen when your vehicle is written off, what is important to you and how aspects would you like to protect?
An advantage of buying gap insurance on line is that you can not only save up to 90 % against the cost of dealership prices but that you also have lots more choice.
Your vehicle is a depreciating asset! This means that over a period of time it will go down in value. No matter how well you look after it or how well you maintain your vehicle it will fall in value as the years pass by.
If your vehicle is written off your own motor insurance company is only liable to settle what ever your vehicle was worth on the day it was written off. With average rates of depreciation this settlement can be as much as 50 % less than the original price you paid all those years ago, without any form of protection your insurance companies settlement is the only amount that you would have (without using savings) to clear any finance or replace your vehicle.
Is Gap Insurance only for new cars ?
Gap insurance is far more diverse as almost anyone who owns a vehicle which is under 10 years of age or 120,000 miles can chose to protect themselves with a form of Gap Insurance.
Our fully automated system is designed to find out about you, how old your vehicle is, how old it was on the day that you collected it and even how you have fund the purchase. It will then eliminate levels of cover that you are not eligible for and highlight levels of cover for you to consider. Attentively you can call our free phone 0800195 4926 where any member of the team will be able to assist you.
Not all Gap Insurance is the same. Small differences in policy wordings can make a massive difference in when and how much any settlement is based on.
At Easy Gap we have designed our policies with you in mind with the least amount of exclusions possible and our honored to have been mentioned in the Which money gap insurance two years running. You will be pleased to know, all of our policies have been awarded an independent Defatqo 5 Star rating so why not compare our policies and see just how easy and expensive gap insurance really can be.
- Car Gap Insurance
- Van Gap Insurance
- Motor Home Gap Insurance
- Motorbike Gap Insurance
- Taxi Gap Insurance
- Driving School Gap Insurance
- Price Promise
Do you know what is Car Gap Insurance and what can it do for you?
Even if you understand Gap Insurance which level of protection is best for you?
If you are reading this the chances are that your local dealership will have just offered you a gap insurance policy for your car.
The national average dealership price is £395.00.
That said we do know of a manufacturer who regularly quotes over £700 and a finance house who quoted cover, when calculated out over the five years, with interest equates to over £1200.
So while you may think that it is a good idea the price can sometimes be prohibitive.
Like a vast majority of the general public today if you want more information or carry out research you have searched the internet.
Our system is designed to make sure that it will eliminate cover which you are not eligible for so simply click for an instant quote and our automated system will walk you through.
Alternatively you can call our free phone number where a member of the team will be happy to explain your options. No pressure, no jargon and no gimmicks. Instead just plain English.
So why is car gap insurance so important and how does it work?
Car gap insurance is just like any other form of gap insurance in that it protects your financially if and when your car is written off.
Please remember that if your car is written off your own insurance company is only ever legally obliged to offer you the market value of your car on the day it was written off. With the average vehicle vehicle with average usage estimated to lose up to 50% within just three years this means that the amount that they offer you can and often is thousands and thousands of pounds less than the price that you originally paid or even the amount that you still have outstanding on finance.
So what does this mean to you?
Lets look at an example and see what happens when we buy one of the nation's favorites and a car not normally known for loosing value quickly the ever popular Volkswagen Golf.
According to What Car you will have paid in the region of £17295 for a base model 1.4 3 door TSI.
So all is well and your are enjoying your Volkswagen, which is after all a fantastic car until one day your car skids on black ice.
It is no-ones fault and thankfully no-one is hurt however your Volkswagen is written off. Your VW has performed exactly as it should and has protected you and your passengers, after all cars can be replaced you can not. So what happens now?
Again according to What car your car will now be worth an estimated £7081 towards the end of the third year.
Please remember that you own insurance company are only liable to pay you what your car is worth on the day it was written off. This means that you now have just £7081 to clear any finance or replace your car.
You could re-finance any shortfall, you could dig very deep into any savings you may have, you could carry on making personal loan payments for a car you no longer have?
If you had taken a form of car Gap Insurance this financial worry could of been avoided. Depending upon the level of cover that you chose you could of either protected the financial shortfall, the invoice price you paid or even the replacement cost.
Car Finance gap Insurance would simple pay the difference between your cars valuation on the day it was written off and the amount outstanding on finance or your contract hire agreement.
Combined return to invoice would pay the difference between your cars valuation at the point of loss and the original invoice price you paid or the amount that you have outstanding on finance which ever is the greater. ( less your road fund which you could claim back from DVLA )
Vehicle replacement insurance would pay the difference between your cars valuation on the day it was written off and the amount of money you would need to spend to buy another vehicle the same age mileage and condition as yours was on the day that you collected it from your dealership or the amount outstanding on finance which ever is the greater.
Type Gap Insurance into Google and you will see within seconds thousands of results. So why is it best to start shopping on line for your gap insurance ?
Within seconds you will be able to quotations from a number of gap insurance suppliers which can be in some cases up to 90 % less than your dealership or finance companies quotation.
So why are the prices gap prices online so different?
There are legal reasons that your local dealership will not be as competitively priced and while we understand that price is important (but for us our first concern is always your policy terms and conditions) however surly with the prices differences so drastic you would be forgiven for thinking that our policies must in some inferior.
After all we all know that you only ever get what you pay for and that real quality cost?
In most cases this is completely true however in the world of gap insurance this not the case. Instead there are factual legal reasons that you local dealership will never be as competitive and they have nothing to do with the quality of your policy, the level of customer service, features or even the way your claim is handled.
Instead variances in rates insurance premium tax and supplier rates ( which your dealership can not control ) means that the prices will always be more competitive buying independently.
Van gap insurance is very similar to standard levels of protection. You can still chose from protecting yourself with form of finance gap insurance, return to invoice gap insurance or even vehicle replacement but there are two major additional factors that you need to consider.
In most cases in order to be able to take advantage of higher levels of van gap insurance your van will have to weigh no more than 3500 kg. This is because anything over this amount is not classed as a Light Commercial Van (LCV) and you will need specialist cover.
With this in mind please check your vans gross weight before you buy any level of protection.
You ill also need to be aware that if you are VAT registered and have already claimed back the VAT proportion of the Vans invoice price that this will be deducted from any settlement. This is because otherwise in theory you would be claiming back something that you did not pay and have already claimed back.
So please remember that if your van cost you £15,000 & vat and you claim the VAT element back any settlement will be made less the vat. If you are not VAT registered then naturally this will not apply.
As always why no click or call and speak to a member of the team about how easy protecting your van.
It is true motor homes depreciate unlike any other vehicle. The average vehicles depreciation rate can be up to 50% within the first three years alone however this is considerably lower when we are thinking about motor homes.
The problem is that as they tend to be very expensive even a 25 % depreciation rate can amount to a huge sum of money. Don't forget that if you have bought a motor home it is not unreasonable to pay anywhere in excess of £25,000 to £50,000 in fact the sky is almost the limit.
Just like any form of gap insurance there will be terms and conditions but in particular your motor home must have started life as a motor home and been built for the UK market. it must also have been first registered in the UK and can not be a grey import. Please read your policy for full terms and conditions.
That said if you can choose to protect your motor home with varying degrees of cover from classic finance gap insurance, to return to invoice and vehicle replacement with claim limits up to a massive £50,000.
So if you have just bought a new motor home or a motor home new to you why not click or call and member of the team and explore your motor hoe gap insurance options.
Motorbikes whether we like to admit it or not are just like any other vehicle. Over time they will lose value.
This means that should your motorcycle be written off and your own insurance company make settlement this could be thousands and thousands of pounds less than you originally paid.
Statistically you as a motorbike owner are also more likely to make a claim. This is not your fault it is simply just that bikes are a lot easier for criminal elements of society to target for theft. Also if your bike is involved in even a minor accident it is much more likely to sustain damage which will mean that it is written off.
So what does this really mean to you in cold hard money terms?
Lets say that you have just bought a new bike Diavel Ducati Carbon Red which according to Ducati UK would cost you in the region of £16495.
Two years later your bike is stolen and you insurance company pay you what you bike is worth on the day it was written off. Again using prices advertised by Ducati UK your bike is now worth in the region of £10250.
Without any form of motorbike gap insurance the £10250 is the only amount ( unless you want to use savings ) that you would have to be able to buy another bike or clear any outstanding finance.
Depending upon the level of motor bike gap insurance you had chosen you could of protected yourself against the difference between your bikes valuation on the day it was written off and either the amount outstanding on finance, the original invoice price you paid or even the replacement cost of a like for like bike which is the same age mileage and condition as your was on the day you picked it up from the dealership.
With a standard three year return to invoice gap insurance policy from as little as £68.00 is it really worth taking a gamble? Why not click or call and speak to a member of the team and explore your gap insurance options.
This is because most insurance companies feel that the risk to them is too high. So why is this?
To understand why you need to understand what gap insurance does and how it works.
The official term is that taxi gap insurance is there to protect you should your taxi or private hire car be written off. Don't forget that if your taxi joins the estimated 600,000 other vehicles written off in the UK each year your own insurance company will only ever pay you what your taxi is worth at that time.
With the usage and sheer mileage that taxi drivers can do this means that you car will be worth a lot less than Mr & Mrs Joe Average. The standard rates of depreciation the magic nearly 50% within the first three years alone are based on average mileage which is in the region of 12,000 to 15,000 per year.
We talk to some drivers who can clock up this mileage in a matter of months. This means that when you make a claim your own insurance company is paying a lot less and your taxi gap insurance policy is now paying the lions share.
Combine this with the fact that because of the length of time that you are on the road you are more like to be involved in an accident.
All this means that you are more likely to make a claim and when you do it will cost the insurance company a lot more than normal.
Ok so what does this really mean in cold hard money terms?
Lets say that you have just bought a Skoda Octavia to use as a private hire taxi. it is a 1.6 diesel estate and with the current VAT offers you paid just £13500.
Four years later your car is written off. It is no-ones fault and thankfully no one is hurt. Based on just 60,000 miles per year this means that your Octaiva is now worth just £4000.
Without any form of Taxi Gap insurance this is the only amount (without using savings) you have to clear any finance or buy another car. Don't forget time is of the essence as your Taxi is your mobile office and an essential toll of trade you need to be able to earn a living.
This is exactly where taxi gap insurance can help.
In fact depending upon the level of cover that you have chosen you could choose to protect the difference between your Taxi's valuation on the day it is written off and either
- The amount outstanding on finance
- The original invoice price you paid. ( from this you can clear any finance and the deposit and any equity you have is yours to do with as you see fit)
- The replacement cost of another car the same age, mileage and condition as yours was on the day that you picked it up. ( from this you can clear any finance and the deposit and any equity and now inflationary increased cost you have is yours to do with as you see fit)
So why not click or call 0800 195 4926 and speak to a member of the team and see just how easy and cheap taxi gap insurance can be.
So why is this what is the difference whether you use your car for personal reasons or as a driving school?
The answer is simple the type of work you will do in you car and the sheer amount of miles your car will clock up means that you are more likely to make a claim and when you do it will cost the insurance company a lot more.
So why is this?
Well don't forget that the whole idea of gap insurance is that when you vehicle is written off it will pay the difference between your own motor insurance companies settlement and either the amount of money outstanding on finance, the original invoice price you paid or even the replacement cost, depending upon which level of cover you have chosen.
The problem is that your own motor insurance company are only liable to pay you what your car is worth on the day it was written off and as your car will have done considerably more miles than Mr & Mrs Average their settlement will be a lot less.
Now this is no bad thing after all you need to use your car in order to be able to give lessons and we know of some driving school instructors who can cover nearly 70,000 in one year alone. But this means that when you need to make a claim your car will be worth a lot less and in turn your own insurance company will have to pay a lot less. Your gap insurance policy will instead paying the lions share.
As you will spend more time on the road you are also statistically more likely to have an accident.
These two factors means that most standard gap insurance policies simply will not cover you or even more strangely they will not cover you if you are giving a lesson when your vehicle is written off.
The good news is that providing you select the driving school option from our drop down menu when you are building a quote our policy will. You can still enjoy of the benefits of feature rich cover and not be limited to specialist cover which may not include all the additional features.
So why not click or call 0800 195 4926 and speak to a member of the team about your driving school gap insurance options and make an informed choice.
After all it is your car, your money, your livelihood and you would will have to live with the financial consequences.
No - one has an unlimited bank account and every penny really can make a difference!
That is why we price check on a regular basis and monitor the gap insurance market to ensure that you are always quoted out best price 1st time each and every time.
No vouchers, no codes absolutely no gimmicks!
Just real value for money.
That said if you do find a cheaper gap insurance quotation we guarantee to beat it. No drama, no small print, no get out clauses, no gimmicks and no fuss, simply call 0800 195 4926 quote price match and speak to a member of the team.
We make a promise that you will not pay a penny more for our hand picked feature rich polices than you would from any of our competitors.
Our Gap insurance price promise does not affect your 30 day cooling off , cancelation or statutory rights.