Published on August 14th, 2020 | by James Simpson0
Mind The Gap: 4 Reasons To Consider Buying Gap Insurance
The first thing you need to consider when buying a vehicle is the level of insurance you require. With the right cover, there’s no need to worry about the horror stories you hear about motorists driving off the lot and totaling their new car. Whatever happens, a comprehensive policy should ensure that you have the ideal backup plan if the worst-case scenario becomes a reality.
However, even when you think you’re covered, there might be holes in your plan. It’s called the gap between the value of your vehicle and what you owe on the loan you used to make the purchase. 91% of drivers paid for their new whip on finance, so it’s not rare to find yourself stuck in the gap.
Thankfully, gap insurance is around to make sure that you aren’t left to pay a hefty bill. With all add-ons, you could convince yourself that it’s an unnecessary investment, but here are four reasons why this isn’t the case.
Even New Vehicles Lose Value
And, they lose a hell of a lot. It’s hard to calculate how much less your car or van will be worth by the time you drive it home, yet the figures are in for the first year’s depreciation, and they don’t make for pleasant reading. You can expect your vehicle to be worth 40% less within twelve months, and 60% after three years.
Therefore, if you have agreed to a finance or PCP deal, you’ll be left with a significant hole if your car is written off. The insurer will only pay the amount its worth at the time, whereas the terms of the contract will stipulate that the value is closer to the original amount.
The good news is that gap insurance picks up the tab for any amount that’s leftover if you do find yourself in a tricky situation. POOF – the gap is gone!
The Odds Of An Accident Are Higher
“I haven’t been in a car accident and I never will.” Have you ever uttered these words? Lots of motorists do because the idea is a foreign concept. As long as you drive well and don’t take risks on the road, you should be fine. Yet, this website says that incidents are up 3% year-on-year in the UK.
Not only are the chances of being involved in a crash higher now than previously, but write-offs are more common too. Whether vehicles aren’t manufactured to the same quality or safety isn’t as big of an issue, the truth is that the most serious form of an accident has increased by 5% to 6% in recent years.
This means, regardless of how good a driver you think you are, you might be involved in an expensive accident and have to pay back the money you owe as a result.
It’s Not Expensive
Through all this, you’d imagine that gap insurance would add to your already high running costs. After all, it seems that this policy provides a service that is becoming increasingly necessary in the UK. However, it’s not hard to find the cover that won’t break the bank.
In fact, you can buy it for as little as £49 for the year. No, that isn’t a lie, as you’ll see when you visit the companies website by clicking on the link. For less than £50 for the entire year, you can cover yourself for thousands of pounds of damage, which is the obvious reason to invest.
You might never be in an accident, never mind one that’s significant enough to total your vehicle and leave you saddled with debt. But, it’s not worth the gamble when you can secure peace of mind by adding gap insurance to your policy.
You Can Drive Naturally
Now that you know about the risks of being on the road, you could fret about the future and a bad driver just tapping the front or back of your car. Seriously, it’s not uncommon for motorists to overthink a scenario and attempt to avoid it at all costs.
While it might seem worth it to you, life is too short. Plus, you’ve got a busy life and need to get to places in a hurry (without speeding, of course.) Those who are unsure behind the wheel tend to cause more damage because they are indecisive. Thankfully, you don’t need to worry.
You can ignore the idiots and boy racers that put drivers, cyclists and pedestrians in harm’s way and continue on your merry way, safe in the knowledge that you’ve minded the gap.
Doesn’t that sound like a solid investment?!