The value of your vehicle will decrease during the vehicle lifetime and in the event of a 'write off' (total loss) your car may be worth significantly less than what you paid for it.
Gap Insurance from Bettersafe will help you in the unfortunate situation that your car is written-off by covering the gap between what your motor insurance pays out and the invoice price of your vehicle or the amount outstanding on your finance agreement - depending on which level of GAP cover you choose.
We offer 2 different kinds of GAP cover: Return to Invoice Combined and Lease, which are described in more detail below. Our GAP policies also cover the excess charged by your motor insurer following a total loss up to £250.
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What are the different types of GAP insurance?
Depending upon what is important to you and which level of gap insurance you choose to buy, your gap protection can offer you one of the following options:
Combined GAP - Pays the difference between the motor insurer’s settlement and the greater of either the original invoice price of your vehicle or the outstanding finance.
Lease GAP - Pays the difference between the motor insurer’s settlement value and the amount you have outstanding on a contract hire/ lease agreement.
You want to be protected if your car is written-off and you don’t want the depreciating price of your car to affect you. Gap Insurance from Bettersafe will make sure that you are protected from such a calamity.
Why buy it?
- Your motor insurance company may only pay you your vehicle’s valuation on the day it is written-off.
- Your vehicle will depreciate over time; therefore, it won’t be worth the amount you originally paid for it.
A brand-new car can lose up to 70% of its value within the first three years, while a second-hand car can lose 20% of its value within the first six months. This gives you an idea on the impact GAP Insurance can make and how you can protect yourself in the unfortunate case of an accident resulting in a write-off.
Your car is important and valuable, protect it with Bettersafe GAP Insurance.
What defines a vehicle write off?
According to moneysupermarket.com if the repair costs of the car are equal to 50% of the car’s value or more than this is considered a write-off but the insurance company can determine a write-off depending on your policy terms and conditions.
This information was gathered on the 28/11/2017 from the following page.
There are 3 types of Write-off:
- The first type of write-off is the most serious where the car is only fit for scrap and should never be driven again.
- The second type of write-off is if the car is unfit for the road and should never be driven again but parts can be salvaged.
- The third type of write-off is if the vehicle could be repaired but the costs of repairing the vehicle are too high and don’t cover the costs of the initial price of the vehicle.
An example on why Bettersafe Gap Insurance is vital
- You have just bought a Ford Fiesta Zetec from a dealer on finance for £13,000. You have had the car for three years and unfortunately, you have been in an incident where although none of the participants involved are injured, your car is still a write-off.
- Your insurance pays you the valuation which could be as little as £5,850 which is due to a 55% depreciating value over the first three years of owning a Zetec 1.25L 82PS 3-Door Hatchback.
- If you paid cash for your Ford Fiesta, you would have lost £7,150.
- if you had taken Combined Gap Insurance, it would have paid the difference between your Ford Fiesta’s valuation and either the outstanding finance or taken you back to the invoice price whichever was the higher amount.
Always remember to make sure the Gap Insurance product you pick is the right one for you.