Should You Buy Gap Insurance for an 8 Year Old Vehicle? | BidsInsurance

Should You Buy Gap Insurance for an 8 Year Old Vehicle?

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Simply put, Yes. The chances are that the majority if not all possible depreciation may have taken place, however, the vehicle is still likely to depreciate further. Any amount you pay for a vehicle is worth protecting.

If you have paid 10,000 for your vehicle, then why not protect your finances with a Gap Insurance policy. Whether or not your vehicle has depreciated a large part of its original worth 8 years ago, it is more than likely to continue to lose value. So, why take the risk?

As you may know, if your vehicle was brand new, within three the first three years it is likely that the vehicle will lose as much as 50% to depreciation. If you were to write your vehicle off or if the vehicle were to be stolen, your comprehensive motor insurer will only cover the market value of your vehicle on the day it was declared a total loss. Therefore, this will leave you susceptible to any form of depreciation.

If you have browsed the independent Gap Insurance providers online, you will have seen a number of providers that have the ability to offer you Return to Invoice Gap as well as Finance Gap and maybe Vehicle Replacement Gap.

However, Vehicle Replacement Gap will be based on a vehicle with the same age, mileage and specification as yours was on the day of purchase. Therefore, you will not be sure of the amount protected.

Vehicle Replacement Gap will cover the difference between the market value of the vehicle on the day it was declared a total loss and the average cost to replace the vehicle with the same make, model, mileage, age and specification as yours was on the day of purchase.

If you have received a discounted price for the model and you know you have a good deal, then this may be the most ideal policy for you as your discounted price will be protected.

On the other hand, a Return to Invoice Gap Insurance policy will simply protect the amount you paid for the vehicle. Return to Invoice will cover the difference between the market value of your vehicle on the day it was declared a total loss and the original invoice price that you paid for your vehicle.

This will result in the full balance, deposit and equity being yours to do with as you please.

The next form of Gap Insurance for you to consider is Finance Gap Insurance. Finance Gap will cover the difference between the market value of your vehicle on the day it was declared a total loss and the amount of finance you have outstanding on the vehicle. This will leave you with no outstanding financial payments on the vehicle.

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