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"Car Gap Insurance"
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Published 30/05/2008


Car Gap Insurance
I must be honest and say that I had never heard of Car Gap Insurance until recently. I suppose unless you buy a car on finance you might not know about such policies. As I understand it the Car Gap Insurance covers you in the event of a car being stolen and never recovered or one that is deemed a total loss by the insurers. If you still owe money on the car to a finance company then the gap insurance will pay off the difference between what the insurer says the car is worth and what finance you have left on it. Some of the policies will even leave you with some money to use as a deposit on another car. It`s, probably something that many people would never even consider when they take a car out on finance. If the insurance company decides that the car is worth less than you thought it might be when it is deemed a total loss then you could have to stump up the money to pay off the balance to the finance company. By taking out Car Gap Insurance this problem is eliminated so it`s certainly worth looking into if you want to insure the deprecation on your car.


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