GAP insurance could give you an additional payment on top of your insurance payout to help get you a brand new car in the event of your Volkswagen being stolen or written off in an accident.
Even though you have comprehensive motor insurance you may find you lose financially if your car is stolen or written off in an accident.
This is because your insurance company will generally offer you a 'total-loss' payment, based on the current market value of your vehicle. That could be a lot less than either the original cash price of your Volkswagen or the sum you may still owe under a finance agreement.
This is where GAP insurance comes in to help protect your investment. There are two types of GAP insurance cover available to you:
GAP (Shorfall Protection)
This covers the difference between the amount your insurance company will pay and what you actually owe under your Volkswagen Finance agreement. A payment of up to £10,000 could be made.
GAP Plus (Ruturn to Invoice)
This covers the difference between the amount your insurance company will pay and the actual price you paid for your vehicle. A payment of up to £15,000 could be made, which will help you replace your car with a new car, the same, or similar to the one you have lost.
Both of these payments will apply on top of your insurance claim settlement and you can get them for new and used vehicles. Get an application form from the retailer who sold you your vehicle.
How can I take out GAP insurance cover?
You make a single payment for up to three years cover with the GAP Plus option and up to five years with the GAP option. You must also have a comprehensive motor insurance policy in place for the whole time the cover applies.