Do you need GAP insurance? Money Advice Service #gap #insurance #car


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Do you need GAP insurance?

Guaranteed Asset Protection or GAP insurance is a financial product often sold when you buy a brand new car. In the event your car is stolen or written off (total loss), GAP insurance covers the difference between the current value of the car (the amount your car insurer will usually pay out) and the amount you paid for the car in the first place, or any outstanding payments. So is it worth buying?

What is GAP insurance?

Did you know?

GAP insurance claims ratios are exceptionally low, averaging around 10%, so it’s important to shop around.

Even if your car insurance is fully comprehensive, you can still lose money if your brand new car is written off (total loss).

This is because depreciation means brand new cars lose their value very fast.

On average, a brand new car loses 60% after three years (Source: The AA ).

For example, if your brand new car cost £12,000 and it was stolen or written off three years later, you only get its current value, £4,800, from your insurance company.

This isn’t enough to buy an equivalent brand new car and unlikely to be enough to repay what you owe on your finance deal.

GAP insurance is designed to cover the difference between what your insurer pays out and, depending on the type of policy:

  • What you paid for the car
  • What you still owe on the car

GAP insurance is not typically designed to cover older or relatively inexpensive vehicles.

This is because their rate of depreciation is relatively low.

Is GAP insurance worth it?

GAP insurance could be useful to have if…

You risk being in negative equity, because you owe more than the car is worth.

You might end up owing more than the value of your car if:

  • You’re paying a lot of interest
  • The kind of car you bought loses value quickly
  • The down payment for your finance deal was small (say 20%)
  • You’re paying the debt off slowly (over three to five years, for example)
  • The structure of your finance arrangement means you’re due to be left with a big lump sum to pay at the end – known as a ‘balloon payment’.

You’re on a contract hire deal

If you’ve signed up for a long-term contract hire arrangement and the car you’re renting is written off (total loss) or stolen, you might end up owing the contract hire company more than your insurance company is willing to pay out.

You wouldn’t be able to afford to replace your car

You’re concerned, because of your brand new car depreciating in value, you wouldn’t be able to afford to replace it on a new-for-old basis.

GAP insurance is probably not suitable if…

Top tip

GAP insurance only pays out if your normal car insurance company says the car is written off (total loss) or unrecoverable.

Your car is less than 12 months old and you’re the first registered owner

Most fully comprehensive car insurance policies offer brand new car replacement during the first 12 months of ownership.

However, be careful to read the terms and conditions of your policy for any restrictions or exclusions.

Some policies will not offer new-for-old where the car:

  • Has been stolen, or
  • Is subject to an accident where the insured is at fault

You’re already covered by your finance agreement

If you’re using a finance agreement that already covers you for the difference between the ‘book price’ (official value of the car) and how much you paid, you don’t need to add GAP insurance.

You could afford to make up for any shortfall

Paying for an insurance policy like this is probably not worthwhile if you can afford to cover the difference between the current value of the car and its original value or what is left to pay on finance.

Types of GAP insurance

Did you know?

The Financial Conduct Authority (FCA) has made changes to the way GAP insurance is sold, including banning pre-ticked boxes and forcing firms to publish claims statistics.

There are three main types:

  • Finance GAP insurance. If you’ve borrowed money to buy the car, you might still owe more than the insurance company will pay out. Finance GAP insurance pays the finance company enough to cover your debt, but remember you’ll be left with no car and no money.
  • Return-to-invoice insurance. This is designed to top up the payment from your car insurance so you get back exactly what you paid for the car (or any outstanding finance). This type of policy can be bought for both new and second hand cars.
  • Brand new car (or ‘vehicle replacement’) GAP insurance. This is like return-to-invoice insurance, but it’s designed to compensate for the rising cost of cars, or where a discount has been given on the cost of the car which might not be available again in the future. Brand new car GAP insurance makes sure you get your money back plus a bit more, so you can replace your car for a new one of the same model and specification.

Of the three options, brand new car GAP insurance gets you the biggest payout, but you’ll probably find it’s the most expensive.

Watch the exclusions

GAP insurance might not cover you for as much as you’re expecting:

  • It won’t cover any amount deducted by your main car insurance company. For example, if they reduce your payout because of unpaid premiums, salvage value or contributory negligence, these won’t be covered.
  • GAP insurance will generally only cover excesses up to £250 of your claim. Higher or voluntary excesses above this amount won’t be covered. However, you can choose to purchase an additional insurance to cover this.
  • It won’t cover any non-standard extras that you added to the car after you bought it, for example speakers and satnav.
  • Nor will it cover warranty charges, insurance (premiums including GAP insurance), road fund licence and any other warranty or add-on in most cases.
  • It might not cover anything you think your car insurance owes you. If your main car insurance company offers you less than the market value of the car, and you accept, the GAP insurer won’t make up the difference.

On top, you only get the money if:

  • Your insurance is fully comprehensive
  • Your car has been labelled a total write-off or unrecoverable
  • You’ve made a successful claim and everything is settled (until then, you’ll have to manage your finance payments on your own).

How much is GAP insurance and where to get it

Shop around. You don’t have to take out GAP insurance as part of your car finance deal – in fact it’s often cheaper to buy it elsewhere.

Try the Which? website opens in new window to get a better idea of costs and where to buy.

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Clothing Store Coupons for Old Navy, Gap, Macys, Nordstrom

Clothes shopping at the leading clothing stores such as Banana Republic, Old Navy, Nordstrom, Macys, Bloomingdales and Gap is easy with their online web sites. This site helps you save at these stores with our online coupons for BananaRepublic.com, Old Navy, Gaps, Macy’s, Nordstrom, Bloomingdale’s, etc. We collect available coupon codes, discounts, promotions, clearance sales and other clothes deals for these online clothing stores, as well as Boden, Chadwicks of Boston and Lane Bryant, and provide them to you for free right here at 4ClothingCoupons.com.

Top Nordstrom Coupons Nordstrom.com Coupon Codes

Nordstrom

Nordstrom.com is the online store for Nordstrom, one of the top retailers of designer shoes and apparel. Their specialty is quality shoes, clothing and accessories, from top designer brands, in men’s, women’s and children’s sizes and styles. They sell products by many luxury brands and leading designers, including Armani, Burberry, Dolce Gabbana, DKNY, Blumarine, Marc Jacobs, Ralph Lauren, Michael Kors, Missoni and Roberto Cavalli.

Macys

Macy’s takes up residence at macys.com, where shoppers can browse everything from clothing, home d�cor, beauty products and electronics to accessories for the bed, bath and kitchen. The store offers designer brands in men’s, women’s, kids’ and juniors’ sizes and styles, clothing petite and plus size buyers alike. Choose from hot names like Volume One, Calvin Klein, Ralph Lauren, Tommy Hilfiger, American Rag, Baby Phat, Guess? and Rampage, among others.

Bloomingdales

At Bloomingdale’s online website Bloomingdales.com, you can shop a large online selection in categories ranging from womens, mens and childrens fashions to beauty, bed, bath and kitchen accessories. Find well over a hundred brand names, including Anne Cole, Calvin Klein, DKNY, Hugo Boss, Prada, Nicole Miller and Ralph Lauren. Browse through blouses, skirts, dresses, shoes, denims, blazers, jackets, shoes and more at this high end department store that features top designer clothing.

Banana Republic

BananaRepulic.com is home to modern apparel for men and women. Banana Republic offers special sizes for women’s clothing in both petite and tall. In addition to a breathtaking selection of blouses, shirts, sweaters, dresses, pants, shorts, denims, suits, blazers, jackets, coats, swimwear, intimates, and skirts, this online clothing store also retails shoes, handbags, jewelry, and fragrances (perfume, cologne, body care, and candles). Get free, standard shipping on purchases over $50 and visit the Gift section of the website for great ideas.

Old Navy

Old Navy offers reasonably priced clothing for shoppers of all ages and sizes. Clothing choices are available for babies, toddlers, boys, girls, men and women in sizes including plus, big and tall and maternity. Discover shirts, jeans, pants, shorts, sweaters, underwear, shoes, skirts, dresses, capris, camis and much more.

Gap

Gap, GapKid, babyGap, GapMaternity and GapBody combine to offer an array of clothing and accessories for men, women, children, toddlers and infants. In addition to pants, sweaters, dresses, skirts, jeans, shorts and shirts, you can find bags, hats, shoes and even nursery bedding sets. Expectant moms can find maternity clothes that fit well both during and after pregnancy. At GapBody, discover intimates and clothing for the home.

Boden USA

Boden sells apparel for men, women and children, including dresses, jackets, coats, tops, shoes, skirts, underwear and swimwear. The retailer offers a remarkable variety of trousers, which can be searched by fit and waist type, and which include moleskin, babycord, stretch, turn up, canvas, denim and needlecord varieties.

Lane Bryant

Plus size women can shop an extraordinary selection of fashionable clothing at Lane Bryant. The store retails tops (blouses, knits, tees, tanks, etc.) pants, suits, swimwear, active wear, skirts, dresses (including bridal dresses) and intimates. It also offers jewelry, footwear, handbags and accessories.

Chadwicks of Boston

At Chadwicks.com, shoppers can peruse women’s clothing in sizes ranging from 4P to 26W. Shop the website for tops, dresses, pants, shoes, swimsuits, skirts, blazers, bags, scarves, intimates, Suits-Only� and more. Also locate fine jewelry, including bracelets, necklaces, rings, earrings and watches.

2005 – 2015 4ClothingCoupons.com All Rights Reserved About


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#coupons for clothing stores

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Clothing Store Coupons for Old Navy, Gap, Macys, Nordstrom

Clothes shopping at the leading clothing stores such as Banana Republic, Old Navy, Nordstrom, Macys, Bloomingdales and Gap is easy with their online web sites. This site helps you save at these stores with our online coupons for BananaRepublic.com, Old Navy, Gaps, Macy’s, Nordstrom, Bloomingdale’s, etc. We collect available coupon codes, discounts, promotions, clearance sales and other clothes deals for these online clothing stores, as well as Boden, Chadwicks of Boston and Lane Bryant, and provide them to you for free right here at 4ClothingCoupons.com.

Top Nordstrom Coupons Nordstrom.com Coupon Codes

Nordstrom

Nordstrom.com is the online store for Nordstrom, one of the top retailers of designer shoes and apparel. Their specialty is quality shoes, clothing and accessories, from top designer brands, in men’s, women’s and children’s sizes and styles. They sell products by many luxury brands and leading designers, including Armani, Burberry, Dolce Gabbana, DKNY, Blumarine, Marc Jacobs, Ralph Lauren, Michael Kors, Missoni and Roberto Cavalli.

Macys

Macy’s takes up residence at macys.com, where shoppers can browse everything from clothing, home d�cor, beauty products and electronics to accessories for the bed, bath and kitchen. The store offers designer brands in men’s, women’s, kids’ and juniors’ sizes and styles, clothing petite and plus size buyers alike. Choose from hot names like Volume One, Calvin Klein, Ralph Lauren, Tommy Hilfiger, American Rag, Baby Phat, Guess? and Rampage, among others.

Bloomingdales

At Bloomingdale’s online website Bloomingdales.com, you can shop a large online selection in categories ranging from womens, mens and childrens fashions to beauty, bed, bath and kitchen accessories. Find well over a hundred brand names, including Anne Cole, Calvin Klein, DKNY, Hugo Boss, Prada, Nicole Miller and Ralph Lauren. Browse through blouses, skirts, dresses, shoes, denims, blazers, jackets, shoes and more at this high end department store that features top designer clothing.

Banana Republic

BananaRepulic.com is home to modern apparel for men and women. Banana Republic offers special sizes for women’s clothing in both petite and tall. In addition to a breathtaking selection of blouses, shirts, sweaters, dresses, pants, shorts, denims, suits, blazers, jackets, coats, swimwear, intimates, and skirts, this online clothing store also retails shoes, handbags, jewelry, and fragrances (perfume, cologne, body care, and candles). Get free, standard shipping on purchases over $50 and visit the Gift section of the website for great ideas.

Old Navy

Old Navy offers reasonably priced clothing for shoppers of all ages and sizes. Clothing choices are available for babies, toddlers, boys, girls, men and women in sizes including plus, big and tall and maternity. Discover shirts, jeans, pants, shorts, sweaters, underwear, shoes, skirts, dresses, capris, camis and much more.

Gap

Gap, GapKid, babyGap, GapMaternity and GapBody combine to offer an array of clothing and accessories for men, women, children, toddlers and infants. In addition to pants, sweaters, dresses, skirts, jeans, shorts and shirts, you can find bags, hats, shoes and even nursery bedding sets. Expectant moms can find maternity clothes that fit well both during and after pregnancy. At GapBody, discover intimates and clothing for the home.

Boden USA

Boden sells apparel for men, women and children, including dresses, jackets, coats, tops, shoes, skirts, underwear and swimwear. The retailer offers a remarkable variety of trousers, which can be searched by fit and waist type, and which include moleskin, babycord, stretch, turn up, canvas, denim and needlecord varieties.

Lane Bryant

Plus size women can shop an extraordinary selection of fashionable clothing at Lane Bryant. The store retails tops (blouses, knits, tees, tanks, etc.) pants, suits, swimwear, active wear, skirts, dresses (including bridal dresses) and intimates. It also offers jewelry, footwear, handbags and accessories.

Chadwicks of Boston

At Chadwicks.com, shoppers can peruse women’s clothing in sizes ranging from 4P to 26W. Shop the website for tops, dresses, pants, shoes, swimsuits, skirts, blazers, bags, scarves, intimates, Suits-Only� and more. Also locate fine jewelry, including bracelets, necklaces, rings, earrings and watches.

2005 – 2015 4ClothingCoupons.com All Rights Reserved About