Ok so you have decided to protect yourself with 5 years gap insurance.
So what Claim limit do you choose for a 5 year’s gap insurance policy? After all every gap insurance policy is desgined to protect you to a maximum claim limit.
If the average vehicle can loose up to 50 % within the first three years alone what would a 5 years gap insurance claim limit be?
I hope by now you understand what a claim limit is but just to re-cap
for example you buy a £25000 vehicle and choose a standard return to invoice gap insurance style of cover.
- In two years time your vehicle is written off.
- Its valuation on the day it was written off was £10250.
In this example the claim limit is the maximum amount that you could claim from your gap insurance policy. So if you had choosen again for example say
- A £5,000 claim limit the maximum you would be sent a cheque from your own motor insurance company for the £10250 the a second cheque from your gap insurance provider for just £5,000.
Is a 5 years gap insurance claim limit simply a guess at what you think your car will be worth?
Well no one knows for sure exactly what will happen to market forces however a rough rule of thumb is that the average vehicle will loose up to 50 % in three years. So remember that if you have decided to protect yourself with a 5 years gap insurance policy you will need to fact in the extra claim limit.
We googled Gap Insurance and got a 5 years gap insurance quotation.
When it came to the diffrence in prices for 5 years gap insurance we found that by increasing the claim limit to the maximum made little or no difference.
In nearly all the test studies we looked at we found that we could buy a 5 years policy, which had lots of nice additional features for less than the cost of a standard policy from dealerships which are ususally around £395