Vehicle values depreciate at an alarming rate, starting from the very moment you drive off of a Dealership. A new vehicle is likely to be worth only around 40% of its original list price within 3 years of ownership. Insurance companies are writing off more cars than ever due to the high cost of repairs and modern materials used.

When a write-off occurs you are responsible for any financial shortfall, not your motor insurer. There are two main types of protection available: 1. Lease or Finance GAP In the event of your vehicle being declared a write-off by your motor insurers because of theft or an accident, there may be a shortfall between the vehicle’s current market value and the value required by the lease/finance company to settle the lease/finance agreement. There could be a significant shortfall depending on the rate at which your vehicle has depreciated and the period that is remaining on the lease or finance agreement.

You will be held responsible for this shortfall by the companies involved. GAP insurance would cover this shortfall for you as shown in the following example. A vehicle is purchased for $18,335. 15 months later the vehicle is written off. The motor insurer settles $11,250 but the customer still owes the Lease or Finance company $13,175. The GAP policy will pay the $1,925 shortfall direct to the Lease or Finance Company so that the agreement can be closed.

Over 200,000 cars are stolen every year and only 60% are recovered. Around 500,000 vehicles are involved in serious accidents every year. Vehicle crime is now one third of all crime. Your insurers will value your vehicle at the time of a claim, the offer they make will always be less than the price you paid. Vehicles depreciate from the moment you purchase them. A 3 year old vehicle may have lost as much as 60% of its value. Do you have Gap Insurance?

1800Approved currently services clients across all of Australia including Sydney, Melbourne, Brisbane, Sunshine Coast, Gold Coast, Adelaide, Mackay, Cairns, Perth, and all other locations across all states including NSW, QLD, SA, WA, Tasmania and Victoria.

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