Don’t let your car finance haunt you every month if it’s written off or stolen. It’s scaarry! Return to finance GAP insurance keeps you out of the financial gravel trap.
Securing car finance can help you drive your dream car on the road. You’re happily paying off your car, but if it’s written off or stolen, your insurer will only pay its current market value. Due to pesky depreciation, it probably won’t be enough to clear your outstanding balance.
This leaves you with your monthly payments, but no car. You’re essentially paying for fresh air. That’s where return to finance GAP insurance kicks in. It prevents lingering car finance from coming back to haunt you every single month and allows you to get back on the road quicker in a brand-new car.
How does return to finance GAP insurance work?
When the worst happens and your car is written off or stolen, your main car insurer will only pay out the car’s current market value. But if you bought it on finance, you could still owe more than that payout covers.
Finance GAP insurance covers the difference between your insurer’s payout and the remaining finance balance, ensuring your debt is cleared. No leftover payments and no monthly reminders of what you could’ve won. Just financial peace of mind.
Is GAP insurance for car finance worth it?
Absolutely. A car loses its value faster than you think. If you buy a £50,000 car on a five-year finance plan, it could be worth £30,000 after 12 months. But at this point, you still owe £40,000. If it is written off, your car insurer will pay the market value, leaving a £10,000 shortfall.
Return to finance: GAP insurance will cover that £10,000 shortfall, so your bank account won’t take the monthly hit. You can walk away with no remaining debt and get back on the road in a new motor.
When can I buy return to finance GAP insurance?
Most policies need to be taken out within the first 180 days of buying your car. Whether it’s new or used, don’t hang about. The sooner you’re covered, the safer your wallet is. Depreciation starts as soon as your tyres hit the road, and finance doesn’t stop if the car does.
Sorting your Return to Finance GAP insurance early means you won’t be left paying for something that’s no longer parked outside.
Who should buy return to finance GAP insurance?
- Bought your car on finance
- Want to avoid being paying for nothing if your car is written off or stolen
- Care about keeping your finances steady, even in unfortunate circumstances
- Want to get back on the road as soon as possible
How to buy Return to finance GAP insurance
Get a quote online with Insureworks. Insureworks is about making insurance easy. There are no mountains of paperwork, no confusing jargon, and certainly no time-wasting.
We have first-hand experience of how confusing it can be. Being forced to spend hours completing a boring life admin task is the last thing anyone wants to do. The good news is, those days are over. Our online tools let you get signed up in minutes, and if you ever need to make a claim, the process is just as quick. InsureWorks also offers return to invoice GAP insurance.