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What is deprecation, and can it affect my GAP insurance?
Deprecation is, according to the Online Oxford English Dictionary," the action of not approving of something or saying that you do not approve of something."
(definition taken 7th September 2021)
When it comes to cars, it means something completely different. .png "What is car depreciation?")
The BBC say, " Depreciation refers to when the value of something goes down over time. The value of a car usually decreases in value with time. Therefore, its value is said to depreciate. Data taken from BBC Bitesize Website Article titled Working with appreciation and depreciation 07/09/2021
Instead, depreciation means the amount that your car will lose over time. Depreciation is a fact of life that we already completely accept. After all, no-one would want to pay the Recommend Retail Price (RRP ) new car price for a vehicle that is four years old. So, unless you have an exceptionally rare or classic car, we all accept that it will not be worth the same amount in two, year or four years’ time.
This is normally not a problem if you still have the car to use and enjoy.
It can, however, be a major issue if your car is written off. This is because without any form of GAP insurance and without having to use any savings, you may have will be left with whatever your own insurance company offer you in settlement to replace the car and or clear any finance.
GAP Insurance provides a valuable financial top-up to your motor insurance settlement if the vehicle is written off or stolen. The more a car depreciates the more a GAP Insurance policy can pay out.
So just how much of a concern is depreciation?
According to What Car, deprecation can be as much as 66.2% *
They recently listed what they consider to be the fastest depreciating cars, and it makes for some surprising reading.
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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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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.
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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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