By Autograph Contracts - 2015-07-05
Many fully comprehensive insurance policies are appealing because they promise to provide 'new car replacement' cover. As explained by the Money Advice Service, a new car replacement policy will provide the following cover;
"If your car is stolen and not recovered or damaged following an accident, fire or theft (and the cost of repair is above a certain percentage of the manufacturer's recommended retail price) your insurer may replace your car with a brand new car of the same make and specification".
However, although these fully comprehensive insurance policies seem to cover any unfortunate automotive eventuality, you will often find that their new car replacement cover is only valid for the first 12 months of ownership. If your vehicle is written off or stolen after this period then you could find yourself in serious financial difficulty wherein you would be unable to successfully file an insurance claim for your vehicle. This is where Guaranteed Auto Protection (GAP) insurance can help.
By investing in a GAP insurance policy not only will you be covered by the aforementioned new car replacement cover for the first year of ownership, but after this period of time you will also be covered for the difference between the original value of the car and its retail valuation price at the time that it is written off or stolen. As illustrated in the following example provided by on our website;
"Let's say you paid 18,500 for your car and your car is unfortunately involved in an accident and your motor insurance providers declare it a total loss. Using current market conditions your motor insurance provider values your car at the time of the accident as £12,000.
However, you still owe the Finance Company £15,000. The GAP insurance could payout the £3,000 difference- it's as simple as that!". As matters stand there are three different types of GAP insurance;
Consequently, by acquiring one of these GAP insurance policies for your vehicle you can alleviate yourself of the unfortunate circumstance wherein your insurance company refuses to financially compensate for the loss of your vehicle. Another benefit of GAP insurance is the fact that most insurance companies will allow you to pay your premiums in monthly instalments over a duration of up to 36 months. Ultimately, by acquiring GAP insurance, you can rest assured that your vehicle will be protected against theft and unfortunate automotive incidents not just for the first 12 months but for the long term!