GAP insurance doesn't have to be expensive

(Advertising feature) If you've recently bought a car – whether brand new or a bit older – you may have been offered GAP insurance by the dealership where you bought the car. A GAP insurance policy can seem like a great idea. It can also seem extremely expensive, with dealerships offering GAP at anywhere between £299 and £799 – and sometimes even more! The good news is that GAP insurance doesn't have to be an expensive add-on at the dealership. GAP policies can be bought online, not only for a much cheaper premium but very often with a more comprehensive level of cover. GAP insurance can be bought online and for as little as £69.00 for a 3 year Back to Invoice policy from www. ala.co.ukALA Insurance offers a wide range of high quality GAP products to suit individual needs at distinctly competitive pricesSo what actually is GAP insurance? If your car is written off by your comprehensive insurance company following an accident, theft, flood damage or fire damage, you will receive a settlement which reflects the current market value of the car at the time of the total loss. With a brand new car depreciating, on average, by 50% from its original value in its first 3 years, the market value of the car after a write off is going to be significantly less than you originally paid for it. This leaves you having to either find additional funds to replace it with a car of the same specification level or having to buy a car of a much lower specification than the original. GAP insurance protects you from this financial shortfall in one of several ways. Depending upon how you have purchased the car it will pay the difference between your insurance company's settlement of market value in the event of a total loss and either:

• The original invoice price of the car
• The cost of replacing the car with one of the same type and age of your original car
• The amount of outstanding finance at the time of the write off; or
• Up to 100% of the outstanding monthly rentals if the car was on a contract hire or lease

What about the additional policies the dealer offered me? The additional insurance policies can make the dealer's price even more expensive than it already is. Products like Tyre, Alloy Wheel and Scratch and Dent insurance can increase premiums by up to four times as much! Again, they don't need to be such a large expenditure and paying less doesn't mean compromising the level of cover that you receive. Companies such as ALA Insurance also offer these extra policies providing cover for:

• Tyre insurance– This repairs or replaces accidentally or maliciously damaged tyres up to a value of £300
• Alloy Wheel insurance– This repairs minor cosmetic damage of alloy wheels using a SMART repair service
• Scratch and Dent insurance– This repairs minor body and paintwork damage using a SMART repair service
• Excess protection– this covers the amount of excess payable to your comprehensive insurer in the event of any claim you need to make with them.

You can protect your vehicle (and your pocket!) for much less than the price quoted by the dealer without impeding the level of cover you receive.