Some still think that finance gap insurance is the best.
I think that this is possibly because it is the oldest an easiest to understand form of gap insurance.
Ok so what dose finance gap insurance protect you against.
Finance gap insurance pays the difference between your vehicles valuation when it is written off and the outstanding finance. for example your vehicle is written off and its market valuation is £10,000. Your finance settlement is £15300. In this case finance gap insurance pays the £5300 to clear the outstanding finance.
Easy! You can now walk away with no financial liability.
It is a very flexible level of gap insurance and is real value for money especially when you consider that prices on the inter-net start from as little as £39.00. In fact most finance gap insurance policies are under £100 and it tends to be only the more expenive veicles taken over a longer period that are over the £100 mark.
In fact this type of gap insurance is also commonly used to protect customers who have a vehicle on contract hire.
Finance Gap Insurance can also cover vehicles from motorbikes to vans, motor homes and cars.
It can also cover you from 1 to 5 years and often for vehicles upto 10 years of age. But there are other levels of gap insurance which can protect the invoice price you paid or even the replacement cost. It is just a question of deciding what you want your gap insurance policy to do.
Just remember that finance gap insurance will not cover negative equity from your old vehicle. Instead there are special negative equity finance gap insurance policies that will allow you to cover up to £5000 worth of negative equity.
After all if all you want is to clear outstanding finance or clear rentals on a contract hire agreement finance gap insurance can offer a real inexpensive solution.