How to Buy Car Gap Insurance

Car Gap Insurance, at first glance may seem a very easy form of insurance to understand. However, should your car ever be stolen or involved in an accident you are protected financially.

So, why is there so much confusion?

Why are the majority of the general public still not aware of how to source the most suitable level of protection?

This could be attributed to the fact that all too often consumers concentrate on the premium price of the policy, in the misguided opinion that this reflects the quality.

Instead, the best and most secure way to buy car gap insurance is to ignore the premium. Yes price is important, however, the way in which your policy performs when you need to make a claim has to be the ultimate acid test.

Making any form of an insurance claim can be stressful. Just the fact that you have been a victim of theft, your vehicle has been stolen or worse, that you have been involved in an accident can be traumatic and financially devastating.

However, this can be compounded when you then discover that you are not completely protected or that your policy will only cover a proportion of your claim.

Instead concentrate on policy terms and conditions. If viable look for a policy with the least amount of exclusions possible.

Understand what the policy exclusions are. Ensure that you know and understand how they will affect you should you need to make a claim.

Check the regulatory conditions. Under no circumstances consider any form of cover if the company or organisation offering the policy, does not have the required regulatory credentials.

Will your policy allow for lifestyle changes?. At the moment you may have no intention of changing or disposing of your car, but lifestyles can change. Financial circumstances may also change and it is therefore important to know that your policy will be able to adapt.

Last but not least. Find out who your policy is underwritten by. The underwriting insurance company is the organisation who will be responsible for settling any claim. There has been a lot of miss-information circulated regarding the geographical location of the underwriter and this importance that this may have should you need to make a claim. The geographical location is instead, personal preference providing that the company is fully regulated and backed by the financial services compensation scheme.