Gap Insurance

Although the area of insurance is not a rocket science, there are many things you find out about as you go through. Under the GAP one may find many sub types of insurance. One of them is Finance GAP. It is available for any vehicle financed under a finance agreement other than contract hire. Finance GAP is fully available to companies as well as private individuals on cars and other vehicles up to approximately five years of age for a maximum cover period of five years and bought within the last three months. This option of gap insurance allows anyone to pay for the period of cover that one requires. If, due to any reason under the finance agreement, the vehicle is written off during the cover period, the motor insurance provider is supposed to pay out the market value of the insured car. It could happen at times that the finance settlement from the insurer provider is in excess of the insurer’s offer. In that case the insured party is personally liable for the financial shortfall. One can also take a look at consequences of vehicles wrote-off during the period of finance agreement but, without taking out the Finance GAP. In such case the car holder is liable for any financial shortfall while settling the finance agreement.