GAP Insurance Policies: Can They be Renewed? | ALA Insights

Part of responsible vehicle ownership is having a current auto insurance policy. This can cover you with financial support in case you have an accident, or your car is vandalized, stolen or damaged. however, a problem for many new car owners is that their insurance policy will not pay the full amount paid for the car in the event your insurance company declares it a total loss.

Difference insurance is designed to cover the difference between what your comprehensive insurer would pay and the amount you originally paid for the car (or your remaining finance payments) if the worst were to happen.

Reading: How long gap insurance last

If you’re considering some gap coverage for your vehicle, you may be wondering how your policy would work and, in particular, how long your coverage will last. In this guide, we’ll look at how gap insurance works to explain whether your policy can be renewed or extended after the policy term ends.

can a gap insurance policy be renewed?

If you have any experience with car ownership, you know that your insurance policy must be renewed or replaced at the end of each term. This is because it is a legal requirement to have insurance if you are using your car. Many policies automatically renew at the end of the term for added convenience, though there are often opportunities to save money by switching to a new policy after your current one has expired.

Differential insurance policies are not the same as auto insurance policies. When you take out a gap policy, it’s for a fixed term, usually two to four years. When you reach the end of this period, the policy will not automatically renew and there is usually no option to extend the policy or purchase a new one. as such, a gap insurer will not typically issue a renewal notice.

The main reason gap insurance coverage is not renewed is because it is generally not necessary. If you bought your car through finance, you may have paid for it in five years. In this case, a gap insurance policy with a term of two to four years will cover you until you no longer need that protection against a financial shortfall. gap insurance will not be required for the entire life cycle of your car, so your coverage will simply expire once the policy period ends.

policy renewal alternatives

See also: Short Term Health Insurance | eHealth

Although policy renewal is not something we offer with our gap insurance, there are a few things to consider. If you have coverage without wing coverage and you change cars before your policy expires, we can provide you with a prorated refund of the original premium. You can use this refund in one of two ways:

  • You can use the full amount as credit against a new policy to cover your new car. there may still be a balance due, but you will not be charged an administration fee.

  • The amount of the refund can be paid to the policyholder, less a £35 cancellation fee.

    As noted above, once you reach the end of a gap insurance policy, it’s unlikely you’ll need a new one. but if you switch to a new car before the policy ends, the option to transfer the remaining balance of the term to your new vehicle can be very helpful.

    brim gap insurance

    ala is one of the UK’s leading independent providers of differential insurance. We base our service on openness and honesty, offering excellent customer service and supporting each client to make the right decisions for their needs.

    We offer a variety of different types of gap insurance, including return to invoice plus and vehicle replacement plus. All of our products are competitively priced and fully compliant with industry regulations. We offer a variety of benefits for our clients, including free policy transfers, a 120 day limit to file a claim (instead of the industry standard 30 days), fscs protected insurers and much more.

    frequently asked questions

    When will my gap insurance policy start and when will it end?

    See also: How much does lo loestrin fe cost without insurance

    Your coverage period will begin on the date specified in your policy schedule. Your policy schedule will also include the date your coverage will end. we can offer support and guidance in evaluating the ideal policy term for your needs.

    How do I decide what type of differential insurance I should get?

    There’s a lot to think about when making this decision, and choosing the right type of gap insurance can be quite confusing. that’s why wing goes above and beyond to help our clients make the right decisions for their needs.

    The key things to consider when shopping for different types of differential insurance are the age of your vehicle, the means used to purchase it (how, where and when), and the level of coverage you need. For example, if you drive a lease or rental vehicle, consider the rental plus coverage.

    do you need gap insurance if you have full coverage?

    Even if you have comprehensive auto insurance, differential insurance can help. This is because car insurance often does not match the original invoice price of the vehicle or the amount due on the financing, due to depreciation in value. If you need help paying your finance agreement in the event your vehicle is declared a total loss, or if you simply want to avoid having to pay out of pocket after an accident or theft, gap insurance is a great option in addition to your car. integral. sure.

    However, you should be aware that you cannot get gap insurance without comprehensive insurance. This is because gap insurance cannot pay if your auto insurer denies your claim. Plus, you may not need gap insurance on a new car if your auto insurance will provide a replacement if yours is canceled or stolen within the first 12 months of ownership.

    See also: Difference in Conditions Insurance | Bankrate