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Should I Get GAP Insurance? | The Benefits of Total Loss Protection

GAP insurance is a great way to protect your vehicle should it be declared a total loss, whether it is written off in an accident or stolen. There are different policies available to suit your various circumstances, giving you the GAP coverage for your needs. Not everyone thinks that GAP insurance is a necessity, but without it, you could be left in a financial predicament should the worst happen to your vehicle. So, do you really need GAP insurance?

In this guide, we will explore whether GAP insurance is worth it for your vehicle, and how much it could cost you. We will also discuss when the right time is to purchase GAP insurance, as well as the many benefits, and how GAP insurance policies at ALA can benefit you.

Is GAP insurance worth it for my vehicle?

GAP insurance is almost always a worthwhile cover option when buying a new or used car. There are very few cars that won’t lose value over time, and having GAP helps to protect you should the worst happen. GAP insurance is often considered for new cars, as they often depreciate in value quickly. Used cars can benefit from GAP cover as well; there are GAP insurance policies such as Agreed Value GAP insurance that can protect your vehicle’s value no matter its age.

Back to Invoice, or Return to Invoice, GAP Insurance is perfect for new cars bought or financed from a VAT-registered dealership; Vehicle Replacement GAP Insurance will help you pay for a replacement car of the same make, model and specification as the one that was declared a total loss (even if it costs more). If you leased your vehicle, Contract Hire GAP Insurance is the policy for you.

GAP insurance is a financial safety net that bridges the ‘gap’ between your comprehensive car insurer’s payout and the original vehicle invoice price, replacement cost or the outstanding balance on your loan (if this is higher at the time of your claim) or lease. It’s a protective barrier ensuring you’re not left financially burdened in the wake of a write off.

To start building your GAP insurance quote, please visit us here.

driving a car at night

How much does GAP insurance cost?

With any insurance policy, the question of expense is always at the top of the list. The good news is that the cost of GAP insurance is often more reasonable than one might anticipate. Premiums can vary based on factors such as the price of your vehicle, the type of policy you choose and how long the cover will last. While it does add to your initial outlay, the peace of mind it brings is invaluable. Plus, you can even pay for your GAP insurance policy with ALA on a monthly basis if you don’t want to pay for it all at once.

GAP insurance is a worthy investment and can save you thousands of pounds if your vehicle is written off or stolen. To find out how much you could be paying, you can try our no-obligation GAP insurance quote builder today.

When should I get GAP insurance?

Ideally, GAP insurance should be considered when purchasing a car and it can be set up in advance to start from day one.. The steepest depreciation of a new vehicle occurs in its early years, so if your car is declared a total loss, you won’t get the amount back which you originally paid, and you could be thousands of pounds out of pocket.

If financed, having GAP insurance during this period ensures that, in the unfortunate event of a total loss, you won’t be left with a significant financial gap. Purchasing GAP insurance at the right time is a proactive step towards financial preparedness, but that doesn’t mean you can’t get GAP insurance on an older car. Agreed Value GAP insurance can be applied to cars bought privately or those that don’t meet the time requirements for other policies; Agreed Value GAP calculates how much your car is worth when you buy your policy using the Glass’s Guide and fixes the value for the policy duration.

Lexus car driving on a country road

What are the benefits of GAP insurance?

GAP insurance can be your financial guardian angel in scenarios where your vehicle is stolen or declared a total loss due to an accident. In such cases, standard insurance will usually only cover the current market value of the vehicle, leaving you with a potential financial deficit. GAP insurance steps in to top up the settlement from the main insurer, ensuring you can clear the outstanding loan or lease balance, and allowing you to move forward with a clean slate.

Having GAP insurance can help give you peace of mind if the worst does happen, hopefully reducing stress levels at an understandably difficult time. You can find out more about the benefits of GAP insurance in our insights centre here.

How GAP insurance from ALA can help

At ALA, we understand the intricacies of safeguarding your vehicle and offer tailor-made policies to suit your specific needs. Our commitment goes beyond mere insurance – it’s a partnership aimed at keeping you in the driver’s seat without the worry of financial bumps in the road.

The question of whether to get GAP insurance is a strategic financial consideration for protecting your investment in your vehicle. We have various policies at ALA to help you choose the best one for you and your vehicle, with a dedicated customer service team to help you when building your quote, throughout your policy, and beyond.

To find out more, or to enquire about a GAP insurance quote, please get in touch with us today.

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