Is gap insurance just for people who have bought their vehicles using a form of finance or can anyone buy gap insurance?
Gap insurance as we know protects you against out of pocket expenses when you vehicle is written off. The problem is that most members of the public still think of gap insurance simply as a form of finance gap. This means that in some cases people who have bought there vehicles with a cash payment do not think that they need to buy gap insurance.
So who should buy gap insurance?
Anyone you has bought a vehicle under 10 years of age can buy gap insurance. After all the risk is the same weather you bought your vehicle on cash or finance? You still have the same risk of your vehicle joining the ranks of the other 600,000 vehicles written off in the UK each year.
So really anyone can buy gap insurance. That is anyone who does not want to have to be liable for any out of pocket expenses. Remember that without any form of gap insurance if your vehicles is written off you are still liable for the difference between your vehicles valuation and
- The outstanding finance?
- Or the outstanding rentals
- Or the invoice price your paid
- Or the replacement cost of a like for like vehicle the same age mileage and condition as yours was on the day your first drove it home.
Remember that when you buy gap insurance just like any other form of protection it will have exclusions, so you will need to read any policy before you buy.
Common exclusions are
- Vehicle must be listed in Glass’s guide
- Vehicle can not be a grey import
- Some manufacturers are excluded such as Lamborghini and Maserati but the may be others so check!
So to summarize who can buy gap insurance, well anyone who does not want the risk of unexpected financial concerns regardless of how they paid!