Gap insurance

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Publish date: 2010-07-04

Gap insurance is an insurance which covers the difference between the worth of the car and what the client owes on the car. It is very helpful for the owner when leasing a car. This insurance comes into action when a car is stolen or totalled and the owner still has to make regular payments. As leasing is becoming a very popular form of buying a car nowadays, so there comes a new type of insurance. As one cannot predict a theft, or when the car will be totalled, Gap Insurance is virtually critical when you want to buy a car on a lease. It is quite practical because it can be covered financially from one to five years, and Gap Insurance covers both new and used vehicles. Not only does it cover cars when stolen or totalled but also Gap Insurance covers the loss of car through theft of keys, as well as it covers dealer fitted accessories and factory fitted options. In the case of dealer fitted accessories, the insurance can cover up to £1000 maximum. The claim limits are also appealing to the client for they are very flexible, ranging from £5000 to £25,000. Beside that, the insurance is very accessible, it can be bought via telephone or on-line, using either a credit card or a debit one. What is good about Gap Insurance is the immediate cover when one had an accident or had their car stolen. It may be also deferred up to 180 days from the date of purchase. This number of days also applies to period of time the car has been owned. This means that Gap Insurance may be bought only within first 180 days from the purchase of car. And, this is very important, the car is covered in any European economic area beside UK. That means that the car is insured by Gap Insurance even if one goes abroad. However, it must be noticed that the finance gap insurance is NOT a fully comprehensive one, it is a supplementary one only, it does not replace a motor insurance. Due to this, there are only one-off payments available without any facilitation. And there are certain limitations for the car, it has to be eligible for Gap Insuring. The car can only be insured if it is up to 7 years old, has a mileage not exceeding 80,000 miles and it has to be bought from a V.A.T registered dealer, the private ones are not included in Gap Insurance.

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