With many new car purchases the additional cover that a GAP insurance product can give is essential. In summary GAP insurance will protect the motorist from any shortfall should their car be written off in an accident or theft. There are several examples and types of cover including Returned to Invoice Gap (RTI) which will pay you the difference between the settlement you receive from the insurance company and the invoice price of the car. This means that any depreciation that has been experienced will be covered by the Gap cover.
Another product to consider is the Return to Value Gap insurance which covers you from the moment the policy is activated so you are then covered for any difference in the payment the insurance company makes and the value of the vehicle when the policy was set up. Again this will protect road users from suffering a high amount of depreciation – especially over a longer period. The final type of cover is called Vehicle Replacement Insurance (VRI) and this means that if the car was involved in a total loss the cars insurer would only pay the real time value of the car. Why settle for this when adding VRI will simply replace your existing vehicle for a brand new model! What depreciation i hear you shout… never worry about having to downgrade or lose out on large sums of money with this protection.
