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Needham Insurance is a specialist insurance broker for Gap insurance
Gap insurance offers financial cover for any difference between the value of the vehicle and the balance still owed on the financing in the event of an accident.
The moment that you drive your new car off the forecourt it will drop in value and continue to lose value over time, therefore your insurance may pay out less than you originally paid for it.
Needham Insurance Services can save you time and money on your Gap Insurance.
According to the Association of British Insurer’s over 500,000 vehicles are written off every year; that equates to 57 vehicles every hour!
In the majority of write offs, the owner of the vehicle will either lose or owe money; the amount can be substantial. Gap insurance is available to provide a low-cost protection against these risks.
Frequently Asked Questions
What cover does a Gap Insurance Policy provide?
Gap insurance covers any shortfall that you still owe on any finance that is owed when the car is written off, as a result of an accident or theft of the vehicle; enabling you to replace the vehicle at the market value without being financially inconvenienced.
A typical example cover is outlined below :-
Finance owed on vehicle when stolen – £16,000
Current value of the car - £12,000
Gap insurance will pay £4,000 to fulfil the difference in value.
How much Gap Insurance cover will I need?
Gap insurance can be purchased for 2, 3, 4 or 5 years. Gap policies ensures that you will get the financial cost for the purchased price against the value that the insurers value your car at the time of the theft or write off due to an accident.
What is a write off?
A write off is referred to as a total loss, either severely damaged as a result of an accident, fire or theft, whereby the motor insurer agrees to pay the owner its market value.
Are Gap insurance policies renewable?
Gap insurances end when the policy expires, so no they cannot be renewed. Remember that cover can be purchased over 2, 3, 4 or 5 years, so it is paramount that you choose the right period of cover when you take out the policy.
Is there an excess to pay?
There is no excess applied to Gap Insurance policies.
Are there any vehicles that are not covered?
Very few vehicles are exempt from having Gap Insurance, however we will advise you if any of your vehicles fall into this category
Is there a maximum claim limit on the Gap Insurance policy?
Cover can be provided for different levels of benefit and duration of cover.