GAP

GAP

GAP Insurance is a policy that can be taken out with a new car. If your vehicle is written off in an accident, then the value your insurance company places on your vehicle may be less than the actual amount you still owe on your finance agreement. This policy will cover the GAP between the two amounts. Say it costs £5,000 to settle the finance agreement and your car is valued at £3,500 by your insurance company, then you would normally have to pay the difference to the finance company to settle the agreement. With Gap Insurance the £1,500 difference would be paid for you.