What are the Varying Levels of GAP Insurance?
The better insurance policies often come with tiers. This makes them more adaptable to customer needs, and thereby more useful, affordable and relevant to the public.
After all, most people would like the cheapest insurance on offer. It’s a win-win scenario for everyone and builds better business to consumer relationships with more and more people of all needs and backgrounds.
Whether it’s a BMW warranty or GAP insurance from elsewhere, neither are an exception to the rule of flexibility in insurance. All good insurance models have varying levels of coverage on offer depending on how one bought their car.
Consequently, what are the varying levels of GAP insurance currently on offer?
Vehicle Replacement GAP Insurance
When we purchase a new car, it loses its original value almost as soon as we start driving it. This is called vehicle deprecation, and it affects every driver everywhere.
Consequently, if we secure our car through loans, it can be easy to think that we can’t pay them off after the incident as the debt doesn’t just disappear with the car.
Well, this is where vehicle replacement GAP insurance can be utilised, squaring away those deals. It can also cover the lump sum you’d normally acquire from a regular insurer, as well as the cost to buy new.
Return to Invoice GAP Insurance
Of course, many people secure their cars without loans. Therefore, when we get into accidents that write off our vehicles that are fully paid for, we can seemingly never get back what we originally paid.
However, return to invoice GAP insurance attempts to right this wrong, financially bridging the gap between an insurer’s pay-out and the costs of vehicle replacement. Obviously, this can help people find some stability after such a heavy financial, and personal, toll.
Return to Value GAP Insurance
This GAP insurance model is very similar to the return to invoice scheme. This is also built to compensate the customer effectively but doesn’t try to reimburse them for the amount they paid for the car but more what the value of the car was when it was first purchased.
Of course, second hand buyers can score a worthwhile payday here from their vehicles original market value.
Finance GAP Insurance
Finance GAP Insurance is also available to help its users pay off any loans or debts to a finance company that are directly linked with the vehicle.
This is especially useful if the user’s regular insurance company refuses to pay-out their customers debt. While it might set the customer back financially, the peace of mind that comes with this option is worth every penny.
Main Image Source: Via Flickr – By Marcelo Campi
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