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Our rundown of this year's top GAP insurance policies, based on independent research
Here's our pick of the UK's best GAP insurance policies, based on independent research π
We used an algorithm to combine independent ratings from Fairer Finance with Mrs Wheel's summaries of customer feedback from reviews websites π€ Β
Simple!
A shiny new car can be a source of immense pride and joy. However, the moment you drive it off the forecourt, its value starts depreciating faster than a watermelon rolling downhill. Within three years, your precious vehicle may lose up to 60% of its original value. Ouch! But don't fret, lovely readers. Gap insurance is here to save the day!
Short for "guaranteed asset protection", gap insurance is designed to cover the difference between the value of your car and the amount an insurance company will pay out in the event of an accident. This type of insurance is especially useful for new cars, as they tend to suffer the steepest depreciation.
There are three main types of gap insurance, each suited for different needs and circumstances. Let's dive into the world of gap insurance and meet our three musketeers!
1. Back to Invoice
This type of gap insurance pays the difference between your main insurer's payout and the original amount you paid for the car or the amount owed to a finance company. If your car was involved in a total loss, back to invoice gap insurance would ensure you receive the full amount you initially paid for your vehicle.
2. Vehicle Replacement
Vehicle replacement gap insurance goes one step further by covering the difference between your main insurer's payout and the cost of buying the car again. This is particularly helpful if the price of your car model has increased since you bought it. You can think of it as a nifty little financial safety net that can help "bridge the gap" between the amount your car insurer pays out and the amount needed to buy a replacement car, or to pay off any outstanding finance.
3. Contract Hire
Designed for leased cars, contract hire gap insurance covers any remaining lease payments in the event of a total loss. This type of gap insurance ensures you don't end up paying for a car you can no longer use.
Gap insurance may be your knight in shining armour if you:
On the flip side, gap insurance might not be the best fit for you if you:
Now that you know the ins and outs of gap insurance, you might be wondering where you can purchase it. You have a few options:
While it might be tempting to purchase gap insurance from a dealership, we highly recommend comparing prices between dealers and online providers. You might find that online providers like Direct Gap offer the most competitive prices.
So there you have it, dear readers! With this newfound knowledge, you can confidently navigate the world of gap insurance and make informed decisions that suit your needs. Happy car shopping!
Did you know, Mrs Wheel has reviewed more than 60 car insurance companies? π€―
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