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Is GAP Insurance paid annually?
GAP Insurance can be paid annually, although it is not the most common payment method or term.
Typically, GAP Insurance is paid as a one-time, lump-sum payment when purchasing a new or used vehicle.
As car buyers usually intend to own a vehicle for an extended period and may finance or lease over a number of years also, GAP Insurance policy terms are normally between 2 and 5 years.
So if you buy a three year GAP policy for £150, then you pay the premium upfront, and you are covered for the full three year term. .png "Is GAP Insurance paid annually?")
It can also be a common misconception that the premium you see via an online GAP Insurance quote is what you would pay every year, like car insurance. This should not be the case. If you get a quote for three years, then the premium you see should be for the full three year term.
Annual GAP Insurance options
However, some insurance providers may offer GAP Insurance as an add-on to an existing comprehensive motor insurance policy, which could be paid annually along with the regular insurance premium.
In this case, the annual cost of GAP Insurance would be added to the overall premium and paid together. This option can provide more flexibility and allow vehicle owners to spread the cost of GAP Insurance over time, making it more affordable. It also provides a flexible way to take GAP coverage when the customer may not be sure how long they intend to keep the vehicle.
This type of ‘top up’ GAP Insurance policy can also be purchased independently from the likes of our sister website at Total Loss Gap. The Top Up protection provided is based on a 25% top up of the motor insurers settlement should the vehicle be written off to a maximum of £10,000. Premiums for this annual top up coverage start at £49.99. However, this type of GAP Insurance will see a lower settlement as the vehicle depreciates in value. If other 'long term' versions of RTI or VRI GAP are available, these may offer more comprehensive cover.
Top Up GAP, like other GAP products, is not automatically renewed.
It's essential for vehicle owners to carefully consider their payment options for GAP insurance based on their financial situation and preferences. Comparing different providers and their respective offerings can help ensure that the best possible coverage and payment method are selected.
Published 17/5/23, written by Mark Griffiths
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Easy straight forward and good value.
Really easy to understand, good value, simple to set up
Very impressed with the help I received over the phone from **** explained my options very clearly and guided me through the process of applying for cover. I've used GapInsurance123 before and am very happy to do so again!
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Amazing & easy
Always easy to do business with and staff are very helpful and efficient
Thank you Jackie for your help. Highly appreciated for great service...!
Quick simple process, appreciate note about 12 month vehicle replacement may be covered on my insurance already, it was.
I called to clarify a couple of things before purchasing and spoke to a lady called Jackie, very pleasant and extremely helpful. I wouldn't hesitate to recommend GAP 123.
Great service, very friendly call handler
easy site to used very pleased with price
VERY EASY TO USE AND COMPLETE. EXCELLANT PRICE HIGHLY RECOMMEND.
Very quick an easy, but the only slight disappointment is that is no where to get your existing customer discount on the web site. You have to phone for that and if you need the cover to start at the weekend you miss out. Shame.
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Really easy to understand and follow.
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