In the event of your vehicle being declared a total loss, your standard insurance will typically only pay its current market value at the time of claim. Due to depreciation, this amount is often lower than what you originally paid or what you still owe on a finance or lease agreement.
GAP insurance from MotorEasy is designed to cover this difference, helping protect you from any financial shortfall.
How does GAP insurance work?
Cars start to lose value as soon as you buy them. This is known as depreciation. Because of this, your car is worth the most on the day you purchase it, which is why it’s best to consider GAP insurance as early as possible.
For example, if you buy a car for £30,000 and a few years later it’s written off, your insurer may value it at £10,000. That’s all they will pay out, leaving a £20,000 shortfall. GAP insurance covers this difference, so you’re not left out of pocket.
