GAP Insurance: download our Simple Guide to Buying a Car
Pam Harrison has just retired form teaching. Both Pam her and her husband have GAP insurance from helpucover.co.uk for their two carsRead more
Protect your investment, not just your car with helpucover's Gap Insurance
If you've just bought a new or nearly new car, chances are you've made a big investment. Not only that, you may also have made a long term financial commitment by taking out a loan or a repayment programme over several years. If your car is stolen or written off within a few years of purchasing your car, there's a good chance the insurance payout from your comprehensive motor insurance will be thousands of pounds less than what you paid for your car. Gap Insurance from helpucover makes up this shortfall so you're not out of pocket.
Car depreciation costs you money
Buying a car can be an expensive exercise. Unfortunately cars depreciate in value considerably in the first few years.
|Year 0||Year 1||%
|Ford Focus Hatchback 1.6TDCi 115 Titanium 5dr||£20,145||£11,974||-41%||£9,851||-51%||£8,050||-60%|
|Audi A3 Sportback 1.8 TFSi 180Sport 5dr||£25,030||£15,176||-39%||£12,600||-50%||£10,475||-58%|
|BMW 1 Series Hatchback 118i SE 3dr||£21,670||£13,750||-37%||£11,301||-48%||£9,275||-57%|
Source : What Car
- A new car loses value as soon as you drive off the forecourt and by the end of the first year will have lost around 40% of its value.*
- If you do 10,000 miles a year, the average car will have lost around 60% of its value by the end of its third year.*
Here's an example of how helpucover's Gap Insurance works:
1. Duncan paid £14,000 for his car 3 years ago. Today, his car could be worth up to 42% less because of depreciation.*
2. Duncan's car is involved in an accident that sees it written off.
3. His insurance company agreed to pay £8,120 - the value of his car at the time of the accident.
4. The bad news: That's a £5,880 shortfall! For Duncan to get back into a car similar to the one he originally purchased, he'd either have to dip into his savings or take a loan.
5. The good news: He'd decided to purchase helpucover's Gap Insurance policy - Car Value Protector - when he originally purchased the car and arranged the car insurance.
helpucover paid Duncan the £5,880 difference!
6. He is now able to replace his car with one similar to the one he originally purchased without having to find any extra money!
*This is a rough guide ONLY, as the devaluation percentage may be bigger or smaller depending on the type of car you drive.
Don't just insure your car, protect your investment and yourself against financial liability in the event that your car is stolen or written off. If the worst happens, you'll be glad you took out Gap Insurance from helpucover.