The moment a vehicle leaves the forecourt, its value begins to depreciate. If your insurer writes off your vehicle, they pay current market value — often far less than you originally paid. GAP insurance covers the difference.
If your vehicle is on finance or a lease agreement, a write-off could leave you liable for outstanding payments beyond what your insurer pays. GAP insurance settles the outstanding balance so you are not left in debt.
Certain GAP policies provide the funds to replace your written-off vehicle with a new equivalent model, rather than simply receiving the depreciated market value. Ask us which option is right for you.