A question we are often is asked is can you renew your gap insurance?
Unfortunately the answer is yes and no.
Please let us show you why.
When you but gap insurance you are normally somewhere in the process asked how long ago you have bought your vehicle. This is because to benefit from the higher levels of cover you will of had to of taken delivery within the magic 180 days time frame.
Unfortunately when you come to renew your gap insurance you are now no longer eligible and therefore instead of being able to protect your vehicles invoice or replacement cost your vehicle is now re-valued and that valuation is the only price you can protect.
Now we know that vehicles can lose up to 50 % within the first three years alone so the re-adjusted gap insurance valuation could be considerable lower than you think.
In most cases the gap insurance valuation is set by a guide price so it is really important to know which guide your gap insurance supplier uses as the can be massive differences.
For example do your gap insurance supplier base your valuation on the cost of your vehicle in Parker Guide or Glass’s guide and if so is there any leeway to increase it. I.e can you increase the gap insurance valutation up to 105 % or it is maxed out at 100 %?
Instead of buying a standard three year policy it would be much better to think about buying a longer level of cover perhaps a five year gap insurance policy as this way instead of renewing if you decide to keep the vehicle longer and having to accept a diluted level of protection you could reverse the situation. If you did change you vehicle you could simply transfer the remaining proportion or even cancel and get a pro-rata refund.
So to summerize can you renew you gap insurance yes but only with an inferior price protection.