How to Get Replacement Gap Insurance and Should I Get It?

by Sanjana Singh

Insurance has become a necessity in the present age and this is the reason that many people are investing in it.


Step 1

Insurance has become a necessity in the present age and this is the reason that many people are investing in it.

Step 2

It provides the peace of mind that you or your family will get the required amount in case anything happens.

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We are aware that there is a specific gap between the amount that your insurer will pay if your car has been stolen and between the amounts that you have actually paid for the car.

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This might create a problem if you have bought a brand new vehicle because its market value will drop by 40% when you drive it for the first time and within a year

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it will be gone down by 60%. This means that if the car is stolen you will be at loss. This is the point where the gap insurance comes in.

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The gap that your regular insurance might not fill will be covered by the gap insurance. However, you have to keep in mind that this insurance wit comes with a lot of interest.

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We all know that one of the biggest reason that people by the replacement Gap insurance are that to depreciate quickly the amount that they have lost.

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However, it is required to be considered that this policy is only for the brand-new cars that are basically not more than 12 months old.

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In case that you are looking forward to having a brand-new car that is expensive then the gap insurance will prove to be useful for you.

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In case that your vehicle is written off and you are not satisfied with the amount that your insurer is paying then it will be a perfect choice.

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In case that you have bought the car from the finance company then having the replacement gap insurance would be a good choice. If the car is stolen, you will have the surety that you will get money

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Do not get gap insurance if: If you do not want to have a new car and you are satisfied with the replacement that you will get.

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In case that you have a completely comprehensive vehicle insurance on your car that is not even older than a year You are driving a second-hand car

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So now it is the time that you make the right choice, keep in mind to not waste your money if you are already properly secured by insurance.

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