Why GAP insurance is Necessary


GAP insurance is necessary if you’re financing a car and you owe more than the car’s worth. GAP Insurance needed if:

• You’re paying a considerable interest in the car
• The kind of car purchased loses value at a fast rate
• Your down payment was small (less than 20%)
• You’re financing the debt at a slow pace (i.e., over three years)
• Your finance arrangement structure is a ‘balloon payment.

​Additionally, other instances where GAP insurance will come in handy is when:

You’re on a contract hire deal

Often the case with car renting companies, if the vehicle leased is written off or stolen, and you owe the contracting company more than what your insurer can pay.

You cannot afford to replace your car

When you cannot replace your depreciated car on a new-for-old basis, a GAP insurance will top up the amount your insurer will pay you, and you can purchase a brand new car.

When you purchase a vehicle from Land Rover Lakeside, our sales pitch often includes gap insurance.
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