My Comprehensive Insurer is offering me a 'new for old' replacement for the first year, why do I still need GAP insurance in the first year?

It would be wise to consider the possibility that there may be instances where your insurer reduces your settlement to market value only. This can be for a variety of reasons, which include things like exceeding the annual mileage limit pro rata, adverse condition of the vehicle, because the vehicle has been stolen rather than being involved in an accident or if a replacement vehicle cannot be sourced within a certain number of weeks of the incident. In addition, it should be noted that you won’t be able to effect a GAP policy after 180 days have passed since you purchased your vehicle. If you do not have GAP insurance, you could be left with a shortfall.