Whether you buy a brand new car or one that is second hand, if you're unfortunate enough to have that car written off, you're unlikely to get a settlement reflecting what you originally paid for it – even with fully comprehensive insurance. To paraphrase a well known saying nothing is certain except death and taxes... and the dreaded depreciation of your beloved car.
Whilst you hope to never have to use any insurance the worst can sometimes happen and if it does GAP Insurance can be invaluable. If your car is stolen, involved in an accident or damaged by fire or floods and your insurance company declares it a write off they will settle at the value of the car at that time. A brand new car can lose approximately 50% of its value in the first 3 years giving you some idea of the financial impact a write off could have.
This is where your GAP Insurance steps in. It pays from your motor insurer's settlement back up to the original invoice price, the cost of replacing the vehicle or up to the outstanding finance – whichever is the higher value at the time of a write off.
Most of our customers have been offered GAP Insurance by the dealer – whether in the guise of Shortfall Insurance, Invoice GAP Insurance, Combined GAP, Purchase Protection and various other names given to GAP by the dealer. This is often at an extremely high price prompting customers to look to us for better value products.
ALA does offer policies at a much more competitive price than the dealer and although price is clearly an important factor the detailed content of the policy is equally significant. Our policies:
Our policies are available whether your vehicle has been bought on finance, for a cash payment, personal loan or if the vehicle is on a lease or contract hire agreement and can be tailored to suit you.