Do I Need Gap Insurance?

Do you need Gap Insurance?

After all, we cannot decide, the decision is instead yours to make. All vehicles are susceptible to depreciation and therefore you could argue that all vehicle owners will need Gap Insurance. Remember if your motor insurer declares your vehicle a total loss, they are only legally obliged to pay you the market value of your vehicle on that day. That means that due to depreciation you could be left thousands of pounds out of pocket. Gap Insurance protects you from depreciation.

The most common forms of insurance purchased are car, home, health and pet insurance. However, insurance is in place so that if the worst was to happen you would be financially protected. So, do you need pet, health or home insurance?

When we purchase insurance, we consider the risk factor along with the benefit factor. Are you at risk? and are the benefits of having the insurance too good to not have? In terms of comparing the risk factor with another form of insurance. The figures for written off vehicles and domestic burgularies in the UK are comparable every year. However, the sales figures for the two forms of insurance are not comparible. This may be down to the fact that many people do not know that they can protect the missing financial gap and many believe that their own motor insurer may protect them back up to the invoice price.

In terms of the benefits of Gap Insurance. You are protecting thousands of pounds and in the majority of cases, tens of thousands of pounds. When purchasing a vehicle, this is often considered as being the second largest purchase in a human beings lifetime. However, a large portion of the population still do not protect their asset to the full.

If you can see the merit in Gap Insurance, the next factor is which type of cover. There are now a number of gap insurance policies that cater for almost every circumstance and situation. The next consideration is arguably the most important part of any purchase, the cost.

When you have looked at the merits of gap insurance, an important factor is cost. Interestingly, higher priced premiums have been offered and sold at a reasonable rate by motor dealers for a number of years. The increased awareness of customers now means that sourcing Gap Insurance online is becoming the more popular choice. If you can purchase the same cover for up to 70% less online that can be a significant factor in swaying your decision to get gap insurance.