The Significance of Guaranteed Asset Protection (GAP) Insurance fora Second Hand Honda
If you have purchased a second hand Honda then you may think that you are unable to claim GAP insurance or wrongly think that it isn’t worth it. Unfortunately this is the mistake many people make and is unfortunately left out of pocket and even unable to afford another vehicle to get them and/or their families to where they need to go.
Standard insurance pays current market value
When you are involved in an accident in a second hand Honda your normal insurance will only pay out the current market value, which could mean that you are left thousands out of pocket within only a few short months. If you have purchased your second hand Honda through a financial agreement the write off of the vehicle will not necessarily and is unlikely to cover the remaining money owed.
GAP insurance policies can pay out either the difference between your insurers pay-out amount so that you can purchase another car of the same specifications or give you a pay-out to cover the remainder of the financial agreement. This means that should your beloved Honda be written off you will be able to get back on the road in a like for like vehicle sooner rather than later.
Don’t be left short
Getting all of the money back is something that people assume will happen with traditional insurance but everything from the market value to the vehicles condition, mileage and service history could leave you with a lot less than you were expecting. With Guaranteed Asset Protection insurance you will not be left out of pocket or without a vehicle of similar standard. You will be able to cover your financial agreement including early termination fees too!
You don’t have to purchase Guaranteed Asset Protection insurance from a dealership
You do not have to purchase GAP insurance from a dealership, so if you haven’t even thought about GAP insurance until recently and think it’s too late you still have time. Purchasing from an independent GAP insurance provider for your Honda is more likely to be cheaper due to tax implications of dealerships and overhead costs.
Second hand Honda’s can be covered by GAP insurance
Gap insurance is usually only available for a vehicle up to 7 years, however it is not unknown for some providers to insure vehicles older than this so do check before assuming you cannot. No matter how safe you think your driving skills are, you can never be sure about other drivers on the road. You can be sure that whether your insurer or a third parties that you will not get the same amount you originally paid for your second hand Honda in the event of your vehicle being written off.
Why take the chance and risk being without a car or paying finance for a vehicle that no longer exists? GAP insurance could give you the peace of mind you need and costs around the same as mobile phone insurance. No one likes to think that it will ever happen to them, but if your vehicle is written off you will have one less thing to worry about.