What is GAP insurance?

What is GAP insurance? GAP or Guaranteed Asset Protection insurance provides a driver with insurance against the depreciation of their car. If you have GAP insurance and your car gets written off in a crash or stolen, the GAP insurer will pay the difference between the value of the car when the GAP insurance was purchased and the value of the car at the time of the accident. For example if you bought a car for £15,000 two years before an accident your car insurance provider would only pay you the value of the car at the time of the accident, which could be considerably less. If you had taken out GAP insurance at the time you bought the car it would pay out a supplementary amount to cover the difference between the value of the car at the time of the accident and the price paid when purchased.
30/01/2013 09:48:55 Mike