With insurance companies writing off cars willy nilly these days, it has come to light that new and used car buyers are potentially losing thousands of pounds when their car is written off in an accident through not taking out an additional insurance policy when they spend their hard earned money.
MB&G, the UK’s largest privately owned warranty provider believes the main reason for drivers not taking out either Guaranteed Asset Protection (GAP) or Return to Invoice Insurance (RTI) from their new or used car dealer is a lack of understanding about the benefits of these policies, combined with dealers not offering the opportunity to purchase such a policy.
I have never heard of them. Have you?
More than half a million cars are written off in the UK each year and many drivers are left owing money to their finance company as their insurance payout doesn’t match the outstanding finance on their car.
GAP insurance pays out on the difference between the insurer’s value and the outstanding finance value, and is now insisted upon by many finance companies when high value cars are bought on Hire Purchase, Contract Hire or Personal Contract Purchase.
Well this does not appear by any means to be another insurance rip-off. Just another additional cost to us already poor motorists.
FemaleFirst Jackie Violet