Catches in GAP Policies?

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Publish date: 2010-02-19

Gap insurance has, just as any other insurance policy, certain areas which are not always very beneficial to the policy buyer. These are those conditions and paragraphs that apply in certain extreme situations and the GAP insurance policy holder may not be even aware of them until such condition appears. The first such thing is the non-transferability of the GAP insurance. In other words, the GAP insurance is as if glued to the policy holder, the vehicle and to the contract environment. If any of those elements are altered or gone, the GAP insurance becomes invalid. It is wise to remember about the fact while buying new vehicles with a view of selling them after one year for example. The next thing is a little bit funny. Namely, the GAP insurance may not cover everything in the vehicle. In certain contracts there is the exclusion of equipment which has not been installed by the car producer. It basically means that any stereo, navigation or computer equipment installed by the driver is not protected by gap insurance and becomes a loss should anything bad happen to the vehicle. The mentioned exemptions do not affect the overall performance of the GAP insurance on the vehicle. Yet, it is good to be aware of them before making a financial decision.

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