GAP insurance, or Guaranteed Asset Protection insurance, protects you in situations where your car is stolen or written off. Specifically, it covers the difference between the outstanding balance on your car loan and the amount of money paid out by insurers whenever you make a claim.
This shortfall between the payout from insurers and the balance on your car loan could come to thousands of dollars.
Don’t get caught out – if you have a car loan, make sure you have GAP insurance to provide you with the cover you need when the unexpected happens.
Understanding GAP Insurance
There are various reasons why the balance on your car loan ends up being more than an insurance company pays out in the event of a claim.
One of the most common is where you add extras onto your car loan at the time of making the purchase. This includes registration fees, stamp duty, dealer delivery, and vehicle insurance costs. None of these things add any value to the car, so they can cause a difference between the loan value and what the car is worth. Sometimes this difference can be substantial.
Another common reason for shortfalls to occur is simply because of the accrued interest on your car loan and the depreciation in the value of your car. When you combine these two factors, you can end up owing more on your loan than the car is worth.
Benefits of Link Finance GAP Insurance
- Covers the shortfall in the value of your car and the amount paid out by your insurer if your car is stolen or written off
- Gets you back on the road quickly as it will be easier to get a new loan to buy another car
- Helps protect your credit rating
- Can be included in your loan and covers you for the full term of the loan
- Our team will search the market to find you the best GAP insurance deal Get in touch with us today by calling