December 3, 2020

Second-Hand Car GAP Insurance


Two of the most common questions asked about GAP insurance are:

  • Can you get a GAP policy on a second-hand vehicle?
  • Is it worth buying A GAP policy for my second-hand Car?

On a Bettersafe Combined or Lease GAP policy your second-hand car is covered in the same way as if it were new. The main reasons you would not be covered by a policy is if the car was over 8 years old at the time of purchasing the GAP policy, or if you did not buy the car from a dealership. GAP Insurance is fast becoming a ‘must-have’ insurance policy for all motorists. As the majority of cars depreciate quickly over the first three years of ownership, many motorists are looking to prevent themselves from any financial shortfall if their car is written off. GAP insurance pays out the difference between what your primary motor insurance values your car at and the price you originally paid.

Do I Need GAP Insurance On My Second-Hand Car?

As with any insurance policy, it depends on a person-to-person basis. However, the two factors you should take into consideration are:

  • How fast and/ or likely is your car to depreciate?
  • How much did you pay for the used car?

Why Do We Think GAP Cover Is So Important?

Imagine you are driving home one day. You are in your BMW which you bought second hand two years prior for £25,000. Unfortunately, it’s a rainy day and the person driving behind you puts on the brakes too late and crashes into the back of your car. Luckily, no one is hurt but your car is classed as a financial write off by your motor insurer.

Many people would expect their motor insurer to pay off the remaining debt. However, all too often, this is not the case. Unfortunately, you weren’t aware of this and so you didn’t purchase a GAP insurance policy. To your frustration, the insurer only valued your BMW at £15,000. After your settlement, this has left you £10,000 out of pocket.

What Would Happen If You Were on A Finance Deal?

This would mean that you would be left with no car and money owed to the finance company.

How Does A Bettersafe GAP Insurance Policy help?

In this case, a Bettersafe GAP policy would cover the difference between the motor insurer’s settlement and the amount that you have outstanding on a contract hire/ lease agreement.

What Would Happen If You Bought The Car Outright?

If you bought your car with cash, your motor insurer would again pay out what they valued the car at when it was written off. Whilst you would be able to replace it with a car of similar value, you would still be left out of pocket.

Our GAP Policies

In this case, we would pay the difference between what your insurer paid out and what you originally paid. This leaves you with the peace of mind that you are fully protected should the worst happen.

What Do I Need To Be Covered Under A Bettersafe GAP Policy?

  • You are the owner of the registered keeper of the vehicle.
  • You have paid the insurance premium for this policy.
  • The value of your vehicle does not exceed £80,000 at the date of purchase.
  • Your vehicle was under 8 years old at the start date of this policy.
  • Your vehicle is covered by a comprehensive motor insurance policy throughout the period of insurance.
  • Your vehicle is registered in the United Kingdom.
  • Your vehicle was not purchased via a private sale.
  • Your vehicle is not used for rental purposes.
  • Your vehicle was purchased within 60 days prior to the start date of this policy.

To make sure you are covered in the event of a write-off, protect yourself with a Bettersafe GAP policy following the link here.