It has historically been a very busy time for upgrading of motor fleets and for anyone going through this process this year, you are likely to hear vehicle providers using the term GAP insurance – but what exactly is GAP insurance, why should you have it and how does it help you?
It is worth noting that insurers will only pay the market value of a vehicle at the time of a total loss occurring, unless your vehicle has been insured on an agreed value basis prior to the loss itself. In many cases, the amount that the insurers pay will not meet the total left outstanding on your finance agreement and it is you that will be left responsible for any deficit between the two amounts. GAP insurance, an often overlooked insurance exposure, aims to protect you from this and will respond to cover any difference between the two sums, meaning you are not left dealing with the unexpected costs associated with settling your finance agreement.
As with any insurance policy, GAP insurance does come with its conditions. It is important, should you have GAP insurance or take GAP insurance out in future, that you do not formally accept the offer made by your motor fleet insurance provider without the prior agreement of the GAP insurer too. If you are unsure at any point during your claim, please ensure that you liaise with your insurance advisors who will be able to guide you accordingly.
Should you need any further advice on GAP insurance or if you are looking for alternatives, please do not hesitate to contact me on 0208 256 4927 or by email on colin.powell@astonlark.com.
Best regards,
Colin
