Unfortunately, cars can depreciate in value very quickly. Some cars can depreciate in value by as much as 50% in the first three years.
It’s because cars depreciate so rapidly that you might need Gap Insurance. You may not know that motor insurers normally only agree to pay out the value of your car at the time of the theft or accident – not the value of your car when you purchased it.
So if you paid £14,000 for your car now, in 3 years’ time it may be worth 50% less. If your car is then stolen or written off, your insurer may only pay out £7,000 – your car’s value after depreciation.
What would you do then? Would you buy a new car similar to the one you originally bought? If so, you’ll need to come up with an extra £7,000. If you’re still paying off a loan for your original car, the amount of money you need could be much more.
Not a pleasant thought.
Gap Insurance covers the difference between what you originally paid for your car and the insurance pay out you will get if your car is stolen or written off. Perhaps you should consider taking out Gap Insurance when you buy a car. Then, if the worst should happen, you’ll be able to afford a similar replacement car without the strain of having to find additional finance.
Simple, affordable Gap Insurance from helpucover
• helpucover Gap Insurance starts from just £3.06 per month.
• Your cover is provided directly by us, the Insurer, giving you savings on your premium when compared to car dealership prices.
• We don’t have to pay commission or showroom overheads – we just offer you the best premium that we can.
• helpucover pays the gap between your insurance payout and what your car is worth at the time you took out Gap Insurance – up to a maximum benefit of £15,000.
• We protect you against financial loss from depreciation if your car is stolen or written off.
• We’ll help you get back into a car of similar value to the one you originally bought.
• Our cover is available for vehicles up to 7 years old.
• Our application process is quick and easy