Working out whether insurance is a worthwhile investment is never easy. After all, no one wants to contemplate the worst-case scenario. But, sadly, such scenarios do happen and it’s always a good idea to ensure you’re fully protected.
It’s worth considering what sort of insurance payout you’d be looking at in the unfortunate event that your car is written-off. Would it be enough to fund a like-for-like replacement?
Sadly, however good your insurance police is, it’s unlikely to pay out enough money to fully fund the purchase of a replacement car or settle any outstanding finance, which can leave you in a tricky financial situation that you simply didn’t see coming.
Protect yourself against a shortfall
GAP Insurance from MotorEasy is designed to bridge the gap between the payout your insurer offers in the event of write-off and the amount you need to purchase a like-for-like replacement. It’s a great way of protecting yourself against the payout shortfall you’re likely to face in the event of a write-off.
Why do I need GAP insurance?
The problem with standard motor insurance is that your car is almost certainly going to depreciate in value. Most cars begin to depreciate in value the moment you buy them and continue to decline in value over the years that follow. By the time your car is three years old, your car is likely to be around 60% less valuable than it was when you bought it.
Because most insurance policies will only pay the current market value of your car in the event of a write-off, depreciation is likely to mean you’re looking at a payout that’s significantly short of the sum you need to replace the car.
So, if you purchased your car for £30,000 and need to make a claim three years later, you could be looking at a payout of just £12,000, based on expected depreciation of 60% over three years. This would potentially mean you’d have to find £18,000 on top of your insurance payout, just to buy a new like-for-like replacement.
MotorEasy GAP Insurance guards you against this scenario, covering you for the car’s value at inception by increasing in value over time as the value of your car depreciates. It’s a great way to offset depreciation and ensure that you don’t find yourself facing a huge bill to replace your car.
Is GAP insurance cheap?
MotorEasy GAP Insurance offers complete peace of mind at an affordable price. If you value your car and want to protect your investment it represents a savvy addition to your existing policy.
It’s easy to hope for the best and dismiss the possibility of a write-off as unlikely, but it’s actually far more common than many people think - almost half a million cars are written off in the UK every year.
Car insurance is supposed to provide peace of mind, so it’s disappointing to discover that most policies are found wanting when it comes to the crunch. It’s wise to contemplate the worst-case scenario and protect yourself against it, which is precisely what GAP Insurance is designed to offer.
Save up to 70% on dealer insurance policies
Our GAP Insurance is a cheaper way to get the cover you need, offering a saving of up to 70% on dealer insurance policies.
And getting your MotorEasy GAP Insurance quote couldn't be simpler. All you need to do is head over to our GAP Insurance page, which gives you the information you need as well as a quick and easy tool to find the right quote for your needs.