FAQ: What is GAP Insurance?
What is GAP Insurance?
GAP Insurance is insurance against a shortfall that may occur if your vehicle is declared a total loss, and your comprehensive insurance payout does not cover the loan balance outstanding on your finance agreement.
GAP Insurance will pay your financier any outstanding balance on your loan contract (up to the relevant limits) where the total loss payment made by your comprehensive motor vehicle insurer is insufficient to pay out the remaining balance of your loan contract.
In addition, a GAP Insurance policy may also provide additional cover for costs incurred by you as a result of the total loss claim.
Please note that this information is of a general nature only. You should consult an accountant to obtain information specific to your situation.
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