Understanding Gap Insurance – General Asset Protection Insurance

Car & van sales in Ireland are recovering well after a few disastrous years, and a lot of purchasers are opting for a brand new car from garages & motor traders but what happens when you drive away from the forecourt, the vehicle immediately depreciates in value.

This could have consequences if you make a Motor Insurance claim in the following months and years, if a total loss occurs on the vehicle due to fire, theft or accident the Motor insurer will pay for the market value of the vehicle at the time of the incident and certainly not the purchase price of the vehicle.

There is a solution in the form of a relatively new product on the Irish insurance market called GAP insurance or General Asset Protection Insurance.

For example you paid €30,000 for your car and a year later you have a total loss claim, your comprehensive insurance policy may only pay out €20,000 which could be the current market value at the time of the incident, that means you will have lost €10,000 on the original purchase price.

With Gap Insurance, in the event of a total loss claim, you will be covered for the difference between your Motor Insurer’s pay out and the Value or Net Invoice price that you paid for your vehicle. The duration of the contract is usually 36 months but can be extended to 48 months if a finance agreement in place and cover & peace of mind can be bought at a reasonable price.

Cover is available for Motor cars & light commercial vans up to 3.5 tonnes, up to a purchase price of €120,000, that are less than 8 years old and with less than 120,000km on the clock.

For more information and a quote on GAP insurance contact us on 1890 549 549 or e-mail info@futureinsurance.ie