3 in 4 Motorists Don’t Have Adequate Car Insurance

A survey by independent insurance broker ALA has found that more than three quarters of British motorists are not adequately covered by their car insurance in the event of their vehicle being written off or stolen – but GAP cover can help.

Losing a car in an accident or having it stolen can be a motorist’s worst nightmare, but a new study by insurance broker ALA has found that over three quarters of us aren’t adequately covered.

According to ALA’s ‘Mind the Gap’ survey, the problem is with the 77% of UK drivers who fail to adequately protect themselves against the shortfall that commonly occurs between the market value of their car and its invoice price, cost of replacement or any outstanding finance.

In order to cover the shortfall, ALA recommends GAP (Guaranteed Asset Protection) insurance. It ensures you’re completely covered for the full value of your car in the event of its loss.

ALA highlights a poll of 2,055 British adults that found that 10% had bought their current vehicle with a bank loan and a further 11% on hire purchase, making both groups vulnerable to expensive repayments in the event their vehicle is ever stolen or wrecked.

The most at-risk group are 25-34 year olds, according to this study. 16% of this group used a personal loan to buy their current vehicle, while 14% are doing so on finance.

And with 10% of respondents admitting to having their vehicle written off over the last year, and 6% saying they’ve had their vehicle stolen, there is a clear risk of being hit with costlier repayments if you don’t have GAP insurance.

Moneyhighstreet comments: “Vehicles depreciate in value faster than many other assets and little nicks and bumps can further reduce their market value, leaving many motorists with a potential shortfall when it comes time to claim.

“Along with rising insurance excesses, this can mean costs associated with claims are becoming even higher. GAP insurance is a good option to make sure that your vehicle is covered for its full value, cost of replacement or outstanding finance balance.

“As with ordinary car insurance, it’s also important to shop around for GAP insurance. Buying from an independent broker such as Click4GAP and SurfandProtect could save you money when compared with insurance offered by your dealer.”