Gap Car Insurance Cover Gets You Payout for Your Stolen Cars Current Value
When premiums are high, you may be unwilling to draw out an extra cover other than that provided by your car insurance policy. Gap Insurance is one cover you should consider during such times.
Your new car drops about 20 per cent in its value once you drive it off for the first time. Suppose your car was worth £10,000 and it depreciated to around £8000, it is likely that your car insurance is paying out only its depreciated value instead of its original cost. If your car is stolen or written off, you will receive only the pay out value of £8000. It definitely will not be much for you to find a replacement for your car with a new one.
Gap Insurance protects outstanding debts and financial investment that you use to purchase your new car. Gap insurance, which is known as ‘return to invoice’ cover, combines with your car insurance to make certain that you got sufficient money to buy a new car of the similar value that was stolen or wracked.
The ‘return to value’ is the other type of gap insurance that offers you with the sum of difference between your car’s payout and your present car value, in case of your car being stolen or written off. The policy of Gap cover combined with your car insurance cover payout will help you buy a new car worth the same value.
‘Return to value’ gap cover can be drawn out up to seven years from the day of time of purchase of your car. An added protection can be purchased if you think your vehicle is gauged to be an utter loss.
Gap insurance cover has its benefits in cases when even a higher car insurance cover cannot offer you a payout on your car’s current value. You will tend to lose on payout when your car is wrecked due to an accident or stolen. Compare car insurance to know more about beneficiary insurance covers.
Article written by the marketing division of Compare.Com.