Why should you have Gap Insurance?

Moto GP News

Gap insurance for your motorbike could literally be one of the smartest things you will ever take out. Unbeknownst to many people, motor insurance is not the be all and end all, if you love taking to the open road on your bike, you are exposed to accidents, no matter how careful you are, if you are ever in the unfortunate position of having your bike written off or stolen, your motor insurance will only award you with the amount your bike is worth on this day. Due to depreciation, this is likely to be a significant amount less than you originally paid for it.

This is where gap insurance comes in. Unfortunately, it is a sad fact that a motorbike is an easier target for criminals. Also, if a bike is involved in what may seem as a minor collision, they are more likely to sustain damage than a car, therefore it is more likely that your motor insurance will write your bike off.

Finance Gap insurance?

Finance Gap insurance for your bike, this is the easiest level of cover to understand. This type of gap insurance will simply pay the difference between the valuation of your bike on the day it is written off or stolen and quite simply clears your outstanding finance. Leaving you standing in the same position as you were before you acquired your bike. Imagine after being through an accident or a theft, finding yourself with no bike and then having to find the money to repay a finance company, who legally can demand this sum within 28 days. This will leave you to walk free with no financial liability.

Return to invoice gap insurance?

Return to invoice Gap insurance for your bike, bikes like every other vehicle, will lose it’s value over time. As we have demonstrated, your insurance company will only ever pay what your bike is worth on the day it is written off or stolen. So imagine your bike cost £8950 and two and a half years later it is stolen, your insurance company of course offer you the market value, which based on average depreciation rates is now £4600. This of course leaves you with a shortfall and only £4600 (without own savings) to be able to purchase another bike. Return to invoice gap insurance will top up that amount to return you to your invoice price of £8950, leaving you with no financial shortfall, so you can use this to purchase another bike, or to clear any finance.

Vehicle replacement gap insurance?

Vehicle replacement gap insurance for your bike, motorbikes are constantly changing, with manufacturers constantly changing and improving specifications to rival their competitors, therefore there is almost a certainty that costs are going to increase. If your bike is therefore written off in around two and a half years time, simply getting your invoice price back is more than likely not going to be enough to be able to buy the same type of bike again. Vehicle replacement gap insurance, instead of simply returning you to your invoice price, will pay the difference between the bikes valuation on the day it is written off or stolen and the difference you would need to be able to buy the same bike again, same age, mileage and specification as yours originally was when you drove away from the dealership.

With prices from £39 it really is not worth the risk of not having gap insurance cover. It could literally save you thousands of pounds, along with the strain of worrying about where your next bike is coming from, or how you are going to pay your finance company. Gap insurance will literally fill in the gap, so that depending on which type of gap insurance you choose, you do not find yourself in a financially devastating situation. Protect yourself and your bike, then you can focus on the more important things like getting over your shock and purchasing a new bike.

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