Auto Mobile

Why You Need to Consider GAP Insurance When Buying a Car

There are few purchases as exciting as buying a new car. With so much to think about, there are a few areas that motorists sometimes overlook, and this can come back to haunt them down the line. The best example is GAP insurance – without this, a motorist could find themselves out of pocket by thousands of pounds and left without a vehicle.

Car Buying Tips: 34 Secrets Dealers Know But You Don't | Reader's Digest

Is It Worth Buying Gap Insurance?

What is GAP Insurance

So, what exactly is the GAP instance? All motorists do not know it, but a comprehensive insurance policy will only pay the vehicle’s current market value, which can be significantly less due to depreciation. This optional policy would pay any shortfall between a payout from your comprehensive motor insurance and the amount outstanding on the finance agreement or the original amount paid for the car if the car were to be written off. The car can lose around 35% of its value after just one year, so it is a smart purchase if it is a brand new or a second-hand vehicle, as it can go up to around 70% after three years.

Why It is Important

Car crime is a big problem in this country, and criminals often target new or high-value vehicles. Unfortunately, write-offs occur far too often, and this can easily be someone else’s fault. In addition to collisions that declare a total loss, an insurance company will classify an automobile as a write-off if it is damaged by fire or stolen and never recovered.

Warranty

Another important factor to consider is the warranty. GAP insurance is an intelligent purchase to make when purchasing a new car. When purchased brand new, you will benefit from a manufacturer warranty such as a KIA warranty, but after this expires, you should take out an extended warranty. This will cover the cost of any mechanical or electrical faults which can occur at any moment in the lifespan of an automobile.

A car is a huge purchase and must be taken very seriously. There are always a few overlooked areas when purchasing a vehicle, and motorists must be aware of this to avoid costly mistakes. Taking out a GAP insurance policy and thinking about warranty cover are two crucial aspects when purchasing a vehicle, and they could save a motorist a huge sum.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
    Related posts
    Auto Mobile

    Reasons Why Buying a Used Luxury Car is a Good Choice

    Auto Mobile

    Undeniable Benefits Of Changing Engine Oil Regularly

    Auto Mobile

    5 Tips to Get the Most Out of Material Handling Equipment

    Auto Mobile

    Four Tips to Consider About Auto Glass Repairs

    Sign up for our newsletter and stay informed !