Auto insurance clients can get one "essential" coverage to avoid wasting "1000’s of kilos" – Specific
Leading automotive association Motoreasy warns drivers who could owe money if their vehicle is written off before drivers have paid the total cost in full. They warn that around half a million vehicles are no longer ready to drive every year and that repairs no longer make sense.
However, drivers with Guaranteed Asset Protection Insurance (GAP) don't have to worry.
Motoreasy Founder and CEO Duncan McClure Fisher said the GAP policy "eliminates this risk" and means drivers can effectively "buy from their agreement".
He said, “Having your insurance company write off a vehicle can be a traumatic event.
“Not only were you likely involved in a serious incident, but you could be facing serious financial bottleneck because you are only being reimbursed for the market value.
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GAP guidelines can be divided into three main categories that can determine what drives cost savings.
Replacement car insurance applies to cars that are less than three months old and have less than 500 miles on the clock.
It covers the difference between the payout from your insurance and the balance needed to purchase a similar vehicle.
Return to Invoice cover applies to vehicles up to 10 years of age with less than 100,000 miles on the clock.
Mr. McClure Fisher warned divers to "only consider monthly costs" and not consider what would happen if an incident occurred.
He said: “Around 90 percent of cars and vans in the UK are in some kind of funding arrangement. But many people just look at the monthly cost without thinking what would happen in the event of a write-off.
“This is why GAP insurance is so important because the last thing you want is to have a large sum of cash on a vehicle you no longer own.
"Having an appropriate policy means that you are covered to wind up a previous contract and then start looking for your next finance deal."