Why Gap Insurance is your financial safety net

<img src="safety net.jpg" alt="Safety net" width="96" height="64">

Gap Insurance is a safety net

What insurance is a financial safety net?

Gap insurance also known as Top-up insurance is just that! It keeps you from financial ruin when disaster hits your car.

You might be in a situation where the value of your car is much less than the outstanding balance of your finance. Say your car is written off in an accident and the insurance company pays only what the value of the vehicle is, you will be left with no vehicle and a balance on your loan that the finance company will claim from you.

You won’t find yourself in such a dilemma if you have gap insurance. You can forget about the difference between the insured amount and the amount owed on the loan. That difference is the gap which will be bridged by this cover. 

Add gap insurance to your main policy or lease contract

A car lease contract should include gap insurance to prevent financial drain. Some dealers of lease cars don’t offer it, which is fine if they include a “gap waiver” in their lease contract, to waive any responsibility for gap charges, should the car be wrecked.

Top-Up or gap insurance can only be added to a comprehensive insurance policy and can’t stand alone. When this add-on is no longer needed in the case that your main policy will cover the full outstanding balance owed, it can be cancelled.