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. Here is an illustration of how much car values can depreciate over a 3 year period.

• BMW 1 Series 1.8D - value loss of 42%
• Volkswagen Golf TDi - value loss of 29%
• Ford Fiesta 1.4 Zetek - value loss of 38.7%

Source: Wisebuyers June 2010. Cars under £20,000 purchased in 2008

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 50% 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 £7,000 - the value of his car at the time of the accident.

4. The bad news: That's a £7,000 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 £7,000 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.