Tip:
Highlight text to annotate it
X
If you're considering a new vehicle lease, then it may be worth protecting
your interests with GAP Insurance. Guaranteed Asset Protection, or GAP
insurance for short, is taken out in addition to your standard vehicle
insurance, and is designed to protect you from any financial shortfall in
the event of a write-off following an accident, or theft.
So, if you've already got car insurance, why would you need a GAP insurance
policy? Well, if your car is declared a write off by your vehicle insurer
in the event of a theft or accident, there may be a shortfall between the
insurer's market value and the amount required to settle any finance
agreement.
For example, a customer leases a Ford Modeo at an original purchase price
of £18,475. 12 months later, the car is involved in an accident and written
off. The finance company is owed £13,713 for the vehicle, but the insurance
payout is only for £12,462, leaving a shortfall of £1,251 that the customer
has to pay. A GAP insurance policy would bridge this shortfall, helping you
avoid any nasty financial payouts. Nationwide vehicle contracts can offer
guaranteed asset protection with up to £10,000 worth of cover.
You can take out a GAP insurance policy within 90 days of leasing,
financing or buying your car, and it covers cars valued at up to £75,000.
All cars must be less than six years old at the start of the policy.
Customers can pay by credit, debit card or check. You can also choose to
spread the cost over ten monthly interest-free direct debit payments.
To find out more about GAP insurance, including all the types of cover
available and FAQ's, visit our GAP insurance page at
nationwidevehiclecontracts.co.uk. You can also speak to one of our GAP
insurance specialists on 0844 482 9595.