Finance Gap Insurance

What is Finance Gap Insurance? Well first of all, this type of guaranteed asset protection is the oldest for of Gap Insurance you will find. Finance Gap Insurance has been offered for many years in the UK motor dealers, and indeed many people think it is the only type you can find.

Its role is to simply cover between the ‘market value’ of the vehicle and the outstanding finance settlement you may have.  

Why Finance Gap Insurance?

Lets recap again on exactly what finance gap insurance can do for you


 

So basically, if you have a shortfall between your vehicle value and the amount you need to pay off your finance, then Finance Gap Insurance can help to protect you.

Finance Gap Insurance questions

What types of finance agreements can you protect? - basically any type of finance agreement tied to the vehicle. It couls be hire purchase, lease purchase, personal contract purchase etc. However, a personal loan that is not linked to the vehicle cannot be covered by a finance gap insurance purchase.

Who would consider buying finance gap insurance? - anyone who may have a finance agreement and who may be in a position where they owe more on the finance settlement than the vehicle may be worth. This does not mean that everyone with a finance agreement could benefit from finance gap. If you have only borrowed a small amount on finance compared to the price of the vehicle, then you are far less likely to benefit from a finance gap insurance policy.

How long can you take a finance gap insurance policy over? – the longest you can take a policy over is five years. Usually you would look to match the policy length to the finance agreement duration.

Which vehicles can you cover?- Cars, Vans, Motorhomes and Motorbikes can all be protected on either EasyGap or GapInsurance123 with our Finance Gap Insurance products. On EasyGap we also have a specialist cover for Taxi’s and Driving Schools. On GapInsurance123 we can offer standard Finance Gap with a small policy premium price rise to reflect the increased risk factor of such vehicles.

Are there significant differences between the EasyGap and GapInsurance123 Finance Gap Products? – there are one or two, but they can be significant depending on your requirements. Lets look at the EasyGap Finance Gap Insurance and GapInsurance123 Finance Gap Insurance policies closely.

Purchase of policy – on EasyGap (and in common with many Finance Gap Porducts on the market) your Finance Gap Policy must be bought within 180 days of your vehicle purchase. On GapInsurance123 no such time requirement exists, so if you have owned you vehicle a year, then you can still take a GapInsurance123 Finance Gap Insurance product.

Motor Excess contribution – on EasyGap there is no contribution to your motor insurance excess deduction, should you have an excess on your motor insurance. On GapInsurance123 there is a £250 maximum contribution towards your motor insurance excess.

Negative Equity carried forward – If you have negative equity added to the price of your new vehicle, because you owed more on your previous vehicle than it was worth, then this is not normally covered by Finance Gap Insurance. However, on EasyGap there is a specific product that can cover a financial shortfall, including up to £5,000 of negative equity from your previous agreement. See Negative Equity Finance Gap Insurance for more details.

More on Finance Gap Insurance throughout the site.

Powered by Easy Gap