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Looking for the right insurance policy for you and your car can be a tedious and time consuming task. In reality, it is recommended to be so as rushing in to buying an insurance policy is not a good idea. You need a policy that is suitable and specific to you and your needs and, unfortunately, finding it can often take a bit of work. So what is gap insurance? Gap insurance is Guaranteed Asset Protection insurance and is aimed to help those who purchase their vehicles on finance. It is a very considerate idea, generally covering the difference between the value of the vehicle and what the person actually owes financially for the vehicle funding. Should the dreaded happen and your car be stolen or even written off; gap insurance for cars softens the blow by ensuring the owner is not left with a big pointless debt hanging over them, as well as no car. Your gap insurance would be tailored, by your insurer, to cover the amount in between what you owe on the vehicle finance and the value of the car. Finance companies these days can be found to charge a fortune, whether in interest or just pricing the vehicles that bit higher on the understanding that someone taking out finance won’t see the money anyway. If finance is taken out on a second hand car, the car might not be quite as smooth running as expected and lose value quicker. This leaves in owner in a bit of an awkward situation should something happen to the car; meaning they are left paying the finance for months with no vehicle to show for it. Insurers that offer gap insurance tend to cover more than just cars;vans and even commercial vehicles in some cases. Before diving in head first and depending on what you use your car for, be sure to check the small print to ensure you a covered, especially if you use your vehicle for private hire, for example.
The benefits of gap insurance speak for themselves. There are also gap policies that cover the amount between the value of the vehicle and the original invoice paid amount. This is quite an astonishing offer and certainly on, as with financial gap insurance, to seriously consider.
One other option offered by insurance companies is RTI gap insurance. RTI means ‘return to invoice’ and in effect offers vehicle replacement in the sense that the insurer might cover the difference between the value of your vehicle and the value of a new one should yours be deemed written off or stolen. This in itself would be amazing peace of mind, knowing that regardless of anything happening to your vehicle (check the small print), you should not have to go without. Competitive thinking is an understatement – gap insurance is to be taken advantage of before too many people know about it! Don’t get too over excited mind; it is still essential that the policy you choose is suitable for your potential needs as well as being able to benefit from their great offers and policies now available.
Author Bio: Shirley Jones is a freelance writer. An avid reader in gap insurance, auto car insurance, RTI gap insurance medical coverage and many related areas, and inspired by the authors of fiction, Shirley is an up and coming author. When not writing professionally, you’ll usually find Shirley spending time with her partner and niece, if not reading or writing her book.