What is GAP insurance?
I am buying a Ford Fiesta on PCP and have been offered GAP insurance by the dealer. The GAP insurance offered includes a clause -" covers for negative equity" which I cannot find in other quotes. Is this clause sometimes given under another name and that is why I cannot find it?
Asked on 13 June 2016 by David Want
Answered by
Honest John
That's what GAP insurance is. It covers the difference between what you still owe and the market value of the car if you wreck it. It's a significant commission earner for dealership salesmen, so is usually less than half the price when purchased independently.
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