Gap Insurance EXPLAINED

Let's take a deep dive into Gap Cover - Gap Insurance EXPLAINED

Gap Insurance helps cover you against financial oss in the result that your vehicle is written-off by your insurance company in the event of an accident, theft, flood or fire. Once your car is deemed to be a total loss the insurer will pay you an amount of money to compensate you for the loss but this is often less than it would cost you to buy another car of the same age, spec and mileage, and it's often less than the amount outstanding on your car finance (even after your deposit!).

Gap Insurance is designed to bridge that gap and top-up what the insurer has paid you to ensure you're not left out of pocket.

In most cases, a write-off leaves the motorist with a financial loss or debt, or sometimes both. Gap Insurance is an optional multi-year insurance to cover losses or debt that is not covered by fully comprehensive motor insurance.

Cash buyers - lose the vehicle depreciation value when a write-off occurs

Finance buyers - can be left with a debt or a loss of deposit - or both

Contract Hire users - can be left with a debt - or loss of advance rentals - or both.

Gap Cover is often offered by car dealerships and car finance companies but to ensure that you get the best terms and cover available it's always worth speaking to a reputable insurance broker first.

Quote JIM10 to get and additional £10 off any purchase.

🚗🚗𝙈𝙔 𝙇𝙄𝙉𝙆𝙎🚗🚗

00:00 Intro
00:40 What is Gap Insurance?
01:09 Types of Gap Insurance
04:14 Why is Gap Insurance Important?
05:35 Where to Buy Gap Insurance?
05:39 Gap Insurance Premiums
06:29 Where to Buy Gap Insurance
09:26 Example Gap Insurance Quote
13:42 Outro

🔥🔥𝘼𝙁𝙁𝙄𝙇𝙄𝘼𝙏𝙀 𝙇𝙄𝙉𝙆𝙎🔥🔥

Important : This channel tries to deliver honest advice for real people. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.

All music used in this video is written, recorded, and produced by me.

𝙋𝙡𝙚𝙖𝙨𝙚 𝙡𝙞𝙠𝙚 𝙖𝙣𝙙 𝙨𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚! ;)

[DefinitelyNotAGuru]

To take advantage of this offer, call 01438 870615 and quote the code or click the link below and choose a time and date for car2cover to call you to provide quotations and deduct your special discount. The callback link is; or simply go to www.car2cover.co.uk to get a quick online quote then give them a call to claim your discount.
Quote JIM10 to get and additional £10 off any purchase.

[williamroberts]

Called car 2 cover, obtained a quote and my discount! Thank you. Keep up the good work.

[mauriceslaney]

Helpful info, clearly and fairly presented as usual. Thanks Jim!

[leonardwheeler]

Hi,
Just BRILLIANT and well presented. I’ve always avoided this type of insurance over the last 40 yrs but having just purchased a Jaguar i-pace, many questions/suggestions have sprung up .? Must say your vid has provided several answers, the car was purchased 3 wks ago. Will definitely take up your offer and see what Car2cover can provide as a cost. Keep the good work and thanks again for your guidance. Len

[richarddixon]

This is very useful, thanks. Definitely use this for my next lease.

[matteoatalanta]

Great piece of information Jim, thanks! 👍🏻

[ppower]

Benefitted from this when my 9 month old Leon was totalled by a careless artic driver. Also car dealers almost never offer a decent price on insurance, shop around!!

[helenalovelock]

Booked a call back. This looks like very good cover. I nearly paid £450 for tyre and alloy cover to dealership. Pleased I didn’t now

[clewis]

I bought 3 years gap ( return to invoice) for a 1 year old car. I used Car2Cover much cheaper than what the dealer was offering.

[Hell-Hound]

Cheers Jim. While watching this a question popped into my head. How would GAP insurance work when the value of your new car rises after purchase? These are crazy times where a premium is being paid to negate long lead times.

[worldofcars_ldn]

Interesting to hear they recommend getting the cover as soon after purchase as possible as don’t insurance companies payout the new vehicle price for cars less than a year old? Appreciate this doesn’t apply for those buying older vehicles.

[richardburke]

I've never heard of this type of insurance before! Great video 🙂 It just seems ridiculous that you pay such high insurance premium to be fully insured and yet when you need to claim they can settle on a much lower value than your car is worth ?
How is that even fair?
Is this the case with all insurance companies?

[tonybrennan]

I had heard of this type of cover but to be honest I had no clue what it was about. I’ll seriously consider this next time I buy or lease a car, thank you Jim.

[h.bsfaithfulservant]

Interesting… it’s worth considering based on my experience of having my Escort van written off.
That was a major headache, as my cash flow had tanked at the time 🙁.

[lldrewtime]

For the car invoice price do I put what I paid before or after my deposit? Great video, ill definitely check out this gap company.

[jockster]

Good advice, I've been looking at this myself.
Self employed..it's easy to Off set against tax anyway

[PaulBrownclk-me]

I need to sort this for my new lease.. what I'm confused about, when they ask for car value... Do they mean the full car price? Or what the lease is going to cost me over the lease contract?? Thanks for the video.

[RobinF_]

Hi I just had my brand new Sportage delivered on lease. I am trying to get a gap insurance but I am jnsure what to put on purchase price as I have downpayment and initial payment. I don’t know total value of the car🤨

[helenalovelock]

Which cover did you get ? Return to invoice or replacement ?

[SkuNi]

Can i still get it just alright if my car is leased and 7months old?