Car insurance customers can secure 'crucial' policy to save 'thousands of pounds'

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    Leading motoring association Motoreasy has warned drivers could owe money if their vehicle is written off before drivers have fully paid off the total cost. They warn around half a million vehicles every year are left unroadworthy and beyond the point where repairs make any financial sense.

    However, drivers with a Guaranteed Asset Protection (GAP) car insurance cover will not need to worry.

    Founder and CEO of Motoreasy, Duncan McClure Fisher said GAP policies “takes that risk away” and means drivers can effectively “buy out of their agreement”.

    He said: “Having a vehicle written-off by your insurance company can be a traumatic event.

    “Not only have you likely been involved in a serious incident, but you could also be staring down the barrel of a serious financial shortfall due to only getting the market value reimbursed.

    READ MORE: Ford owners set for car insurance discounts

    GAP policies fall into three main categories which can determine what cost savings drivers make.

    Vehicle Replacement Insurance is for cars less than three months old with less than 500 miles on the clock.

    It covers the difference between your insurers payout and the balance needed to buy a similar vehicle.

    Return to Invoice cover is for vehicles up to 10 years old with fewer than 100,000 miles on the clock.

    Mr McClure Fisher warned divers “only consider the monthly cost” and do not take into account what would happen after an incident.

    He said: “Around 90 percent of cars and vans in the UK are on some sort of finance deal. But many people only consider the monthly cost, without thinking of what would happen in the event of a write-off.

    “That’s why GAP insurance is so important as the last thing you want is to be left owing a large sum of cash for a vehicle you no longer own.

    “Having a suitable policy in place means that you are covered to settle a previous contract and then shop around for your next finance deal.”



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