Losing your car
If your car is stolen and never recovered, or written off through accident or fire, the settlement from your motor insurer could be significantly less than the original purchase price you paid. Most motor insurers base total loss payments on the market value of your car at the time of the incident. Any depreciation since you purchased the car is potentially your loss.
Filling the GAP
GAP stands for Guaranteed Asset Protection, and that's exactly what it does. In the event of a total loss, GAP insurance could cover the difference between your motor insurance settlement and the amount you originally paid for the vehicle, or the amount outstanding on finance - whichever is greater! GAP insurance will complement your own vehicle insurance and provide the reassurance and financial support you need to get back on the road in a vehicle with the same value as your original choice.