Prominent car gap insurance companies like Click4Gap come to the help of the car owners in many ways. Many of the persons that write off their cars may owe much more on their car finance agreements than the amounts receivable by them from the car insurance companies. That’s where car gap insurance is beneficial. However it may be understood that gap insurance is not the overall protection for your car. This specific mode of insurance is meant to pay the difference when a total loss occurs, i.e. the difference between what you own on the car and its worth considered by the insurance company.
Varied GAP Insurance products – The following major products are usually offered by the car gap insurance companies that satisfy their customers in full:
Return to value GAP – It refers to the amount of difference between the amounts that is paid by the car insurance company and the current value of the car.
Return to Invoice, i.e. RTI Gap – This amount may be described as the difference between the amount paid by the car insurance company and the amount paid for the car. Gap Insurance Return to Invoice can be purchased if the bank loan has been used. The policy repays the amount of difference between the amount paid by the insurance company and the amount originally paid for the car. Generally, the term for the gap insurance Return to Invoice is for a period of three years or when the ownership of the vehicle is transferred or it is sold; whichever is less.
Vehicle Replacement GAP – This is the difference between the amount paid by the car insurance as the complete car insurance and the cost of a replacement vehicle. It applies when the retail price exceeds since the car was purchased.
Following aspects need to be cared for when buying GAP insurance –
* There is no need to buy the GAP insurance only from the supplying dealer. It can be purchased directly from any supplier like Click4Gap.
* Focus must be laid on the quality of cover and premium amount.
* Total loss refers to the amount claimed by the insured person that has claimed the same under the total and/or fire and theft motor insurance policy. It is associated with the settlement of the claim and forfeiture of the vehicle and payment of total loss amount.
Exclusion – Those going in for gap insurance cover for their cars must know that it does not cover the following:
- Payments resulting out of loss of job, financial hardships or death or disability.
- Repairs to cars because of any defects or accidents.
- Outstanding balance of any loan or the value of the car when it is repossessed.
- Amount of rent in case of a rental car when the vehicle is in the shop.
- The reduced value of the car after it met with an accident.
- Down payment made for the new car purchase
- Balances carried over on any loan after rolling over into the new car loan.
- The amount of extended warranties since added to the car loan.