Personal Contract Payment (PCP), Hire Purchase (HP) and leasing deals make owning a brand new car a happy reality for thousands who would struggle to find the cash for a one-off payment. But what happens if your dream car is written off and the amount you still owe is more than the amount your insurance pays out? GAP insurance could be the solution. Find out what it is, how it works, and how to get the best price deal with our complete guide.

What is GAP insurance?

GAP stands for Guaranteed Asset Protection. GAP insurance protects you financially if you have bought an item (usually a car or motorbike) on finance. If your car or motorcycle is written off, GAP insurance ensures that any difference between the amount you still owe and the value of the vehicle for the insurance payout is covered.

Why do I need GAP insurance?

If you have bought a car or motorbike using PCP or HP finance, GAP insurance is worth considering. For a small extra cost, you can buy peace of mind.

Putting a brand new car on your drive comes at a premium. Depending on the make and model that you opt for, cars can depreciate by 77% over a three-year period. There are an estimated 2.2million accidents on UK roads every year. Vehicle theft is also on the rise, with over 100,000 reported cases in the UK in 2017-18 according to Statista. If your car is a write-off (or unrecovered after a theft), your insurer will only pay out the amount it is worth. This is always less than the amount you paid for the car. And that means there is likely to be a ‘gap’ between the amount you originally paid and the amount you receive.

With GAP insurance you know that any difference between the amount you get from your insurance company and the amount you owe will be taken care of. If something does happen to your current car, it means you can get a new finance deal, and a new vehicle sorted quickly.

Is GAP insurance only for new cars?

No. GAP insurance may be particularly useful for owners of newer cars, as they tend to depreciate faster. But GAP insurance is worth considering if you have bought any car using PCP or HP and you are worried about a potential difference in values.

Does everyone who buys a car need GAP insurance?

GAP insurance won’t be the best option for everyone. Before you do decide to buy GAP insurance, it is worth spending a few minutes to look at likely depreciation for the make and model car you are buying. If this is low, you may decide you’re better off by not taking out GAP insurance. Also, bear in mind that if your car is less than a year old, many car insurance policies will offer a ‘new car replacement’. Speak to your insurance broker to find out if you have that level of cover.

What are the different types of GAP insurance to look for?

There are lots of different types of GAP insurance, but the three most common are:

• Back to invoice GAP insurance
• Vehicle replacement GAP insurance
• Contract Hire GAP insurance

Back to invoice GAP insurance pays any difference between the amount your insurer will pay and the original amount you paid or the amount still owing to the finance company.

Vehicle replacement GAP insurance pays you the difference between the amount your insurer will pay and the amount you would have to pay if you bought it new today. Or if it was a second-hand car, you’ll receive the amount you paid for it. As car prices go up with inflation, this level of cover is useful if you want to be sure you can replace your car with a new one.

Contract Hire GAP insurance is specifically for anyone who has leased a vehicle (with no option of a final payment to buy the car). When you lease a car, you can face penalties for ending the lease early. This insurance covers you for any remaining payments for the period of the contract.

Things to watch out for

You’ll need comprehensive car insurance for the vehicle, or your GAP insurance won’t be valid. GAP insurance also won’t pay for any modifications you may have made (e.g. adding alloy wheels or wraps).

Save money on GAP insurance

When you sign your lease, PCP, or HP deal you are likely to be offered GAP insurance as an add-on. It’s easy to say yes, but that could cost you more. Instead, don’t automatically take the GAP insurance offered with your finance deal. Shopping around means you can often source the same cover at a much better price.

It’s Easy2 find a great price on GAP insurance

GAP insurance gives you peace of mind that you won’t be left paying money for a car you can’t drive because you had a crash or it has been stolen. Don’t worry if you don’t know where to start sourcing GAP insurance or don’t have time. One call or email to an independent insurance broker like Easy2Insure is all you need to do. Our friendly team can do the hard work for you, finding the best price GAP insurance. For a free quote and more advice, call us on 0800 917 9522 or get in touch. Happy motoring!

The keyless entry system employs radio frequencies which automatically unlocks and prepares the car to start as the owner approaches. Once the driver is sitting in the seat the car is started with a push-button ignition system, rather than the traditional key-operated ignition barrel at the side of the steering column.

The system was developed for use in luxury and high-end cars, especially in brands such as Audi, BMW and Mercedes. While only a relatively small percentage of current UK cars have a keyless entry system, the number is increasing as more manufacturers adopt the system. Now, brands as diverse as the Toyota Hybrid to the new VW Golf 7GTD, the Peugeot 508W and the Land Rover Discovery have keyless entry/ignition systems. Even the humble Mini Clubman and Mini Cooper are ditching the ignition barrel and going keyless.

It’s slick, it’s cool, and the public love it. The trouble is, it’s incredibly easy to hack. And that means smart thieves with a simple understanding of basic electronics can get into your car in under 60 seconds.

Why are keyless cars so vulnerable?

Before you start panicking, the average opportunist thief is not going to have the technical know-how or the specialist electronic kit to whisk away your brand-new car. However, the method used to hack into keyless cars has been developed and utilised by criminal gangs, many of whom are stealing luxury and desirable cars to order.

The thieves use what is known as a ‘relay device’. All they have to do is stand within a certain distance of the key fob. As many people keep their keys in the hallway of their home, that means if a thief stands near the front door of your house, they can pick up the radio signal from the fob and intercept it.

The thief’s accomplice stands closer to the car with a second relay device, which picks up the signal from the first one. The vehicle is fooled into thinking the owner’s key fob is sending a signal to the car to unlock, which it promptly does. All that needs to happen then is that the thief sits in the driver’s seat, which then allows them to activate to button start and drive away.

All of this takes less than 60 seconds, and the car can be stolen from the driveway without the owner ever being aware that the theft is taking place.

What are the chances of getting my car back?

Unfortunately, the chances of getting your pride and joy back are low. By the time you realise that your vehicle has been stolen (unless you’re very fortunate to catch the thieves in the act), the car has probably been moved abroad or sent to a ‘chop shop’ to be broken down into parts to sell on.

The equipment used (the relays) are not difficult to get hold of, but Ebay has stated that they are working hard to try and remove them from their online auction site.

Keyless car theft – can I claim on the insurance?

Absolutely, and in the majority of cases your insurance company will pay out in full. Because it’s such a difficult crime to prevent (and the thieves doing it are incredibly well organised), insurance companies understand that there’s very little you can do to prevent it from happening. It’s important to call 101 and inform the police of the theft as soon as you find your car has gone, quickly followed by a call to your insurance broker to get the claim process activated.

What can I do to stop the thieves?

While it’s difficult to prevent keyless car theft completely, there are some measures you can take to make it much harder for the thieves to drive away with your car:

• Turn off or disable your fob: when you buy your car, check with the dealer whether the fob can be disabled when you’re at home. For some fobs it’s a simple matter of pressing twice, while others may be deactivated by entering a code or special sequence.
• Don’t keep your keys close to the front door or downstairs windows: relays that access keyless fobs need to be within a certain distance of the fob, so by keeping your keys well away from entry points to your home you’re taking them out of proximity of the relays, which prevents the thieves from activating them.
• Go old-school with a steering lock: high tech thieves can be beaten by low-tech defences such as a heavy-duty steering lock.
• Join the Neighbourhood Watch: there’s a fair amount of ‘loitering’ involved with keyless car theft, so a sharp pair of eyes may quickly notice a couple of thieves acting suspiciously near a property. Mobilising your neighbours so that you all look out for one another is one of the best ways to beat the thieves.
• Use a Faraday bag: Faraday bags or boxes are lined with metal material and can block the signal to the key fob. They cost under a tenner and can be an inexpensive way to prevent relay thieves from accessing your key fob and stealing your car. Be sure that it works first, though, by testing it yourself to make sure the signal is effectively blocked.

Talk to your insurance company

At Easy2Insure we understand how tough it can be to protect your investments, so we make sure we’re here to help with practical advice as well as great prices on car insurance. If you are the victim of keyless car theft it can send your insurance premiums up. At Easy2Insure we can soften the blow a little, and help you find the best insurance at the best prices. Talk to us today or get a quote online.

In the UK we’ve been told to brace ourselves for more extreme weather conditions. And means more potential travel misery. Summer temperatures turn up the heat to melt our roads, while flash floods and blizzards can bring the country to a halt overnight. Inconvenient: yes. But can red weather warnings also impact on your wallet by invalidating your car insurance? We investigate if you are safe to hit the road when there’s a red weather warning out:

What is a red weather warning?

In the UK, the Met Office issues official warnings to the public if the forecast weather could impact on travel and everyday life. The sorts of weather conditions that can lead to weather warnings are:

• Rain
• Thunderstorms
• Wind
• Snow
• Lightning
• Ice
• Fog
• Snow

Weather warnings come in three categories: yellow, amber, and red. A red warning is the most serious category, with a potential to seriously disrupt travel and day-to-day life. A red warning is considered to pose a danger to life and means there’s a high likelihood of damage occurring to buildings.

How common are red weather warnings?

Red weather warnings are reserved for the most seriously dangerous weather. There have been 10 red weather warnings since the system was introduced seven years ago.

Can I drive in a red weather warning?

Yes. The official advice is to only drive during a red weather warning if the journey is absolutely necessary. That’s because a red weather warning means there is a high likelihood of disruption to roads and travel and conditions are likely to be very hazardous. While you’re being advised to stay at home, there is no requirement that you do so.

Will my car insurance cover me if I have an accident during a red weather warning?

In almost every case, your car insurance will cover you if you have an accident when a red weather warning has been issued. For complete peace of mind, double check the small print or speak to your broker or insurer.

There’s also a big BUT.

Your car insurance will cover you if you drive during a red weather warning as long as you are considered to be driving with care. If you have an accident and your insurance company suspects your driving was dangerous they could refuse your claim. That means you may need to adjust your driving style to match the weather conditions. Take extra care and slow down, especially at roundabouts, junctions, and traffic signals.

Other things to think about to make sure your insurance is not voided in cold weather

If a weather warning has been issued for cold and ice, you’ll probably need to defrost your windscreen. It can be tempting to nip out to the car, turn it on to start defrosting, and then head back into the warm. But beware: your insurance company will not pay out if your car is stolen while the engine is on and you are not with your car.

Staying safe in extreme weather

While your insurance should cover you if a red weather warning is issued, it is a good idea to take a few extra precautions if you are heading out. These can help to prevent an accident from occurring and keep you safer if the weather does catch you out:

• Check your tyres. Make sure you have plenty of tread for maximum grip on icy or wet surfaces. Check the pressure too, as over or under-inflated tyres increase your stopping distance significantly.
• Put an emergency kit in your car if very cold weather is forecast. You should include a shovel (to dig your car out if it gets stuck in a snow drift), and extra warm clothes and blankets. Pack water and food too, in case you are trapped in your car overnight.
• Make sure your screen wash is topped up (and not frozen). Salted roads get very mucky and it can become difficult to see clearly to drive if your washers are not working properly.

Buy great value car insurance

Whatever the weather, you can be sure of a great value deal on car insurance when you get in touch with our friendly team at Easy2Insure. We are an independent insurance broker, so we shop around the UK’s best insurance companies to negotiate the cheapest deal on your behalf.

We offer competitive quotes for drivers of all ages and all cars, including classic cars and modified cars. For complete peace of mind, ask us to include breakdown cover in your quote, so you know help will be on its way if something does go wrong on the road. Call us on 0800 917 9522 or get a quote.

Cars are getting bigger, parking spaces are getting smaller, and distracted drivers are everywhere. This all adds up to more bumps and dings when your vehicle is parked. Sometimes you’ll find a note and contact details. But more often than not, you won’t. A whopping 1-in-5 drivers admit to hitting a parked car and driving off. If you’ve come back to your car to discover a new scratch down the side or a ding in the bumper, and no culprit in sight, you may feel resigned to putting up with the damage or forking out for the repair bill yourself. But this is where scratch and dent insurance, also known as cosmetic car insurance, could make a difference. We look at what scratch and dent insurance covers and why you might need it. That way you can decide if it’s the right choice for you.

• First, what is scratch and dent insurance?

Scratch and dent insurance is typically purchased in addition to your standard car insurance. It’s specifically designed to cover you for putting good any purely cosmetic damage that occurs to your vehicle, typically when other drivers bash into you at low speed.

• What does scratch and dent insurance cover?

Scratch and dent insurance covers minor damage to your vehicle. This is things like small dents and scratches and chips. This damage will only affect the cosmetic look of your car but can be annoyingly expensive to put right. Scratch and dent insurance is not designed to be used for fixing more substantial damage.

• Are you the sort of person who cares about the way your car looks?

For many of us, our car is not solely a way to get from a to b. It’s a status symbol, so we don’t want it to look battered and bashed. If you couldn’t care less if your car has had a cosmetic bash, then scratch and dent insurance is not something you’ll need. But if you do care, and wouldn’t be seen dead in a motor with dents down the side, then it is worth considering as it can save you money.

• Do you have your car through a PCP (Personal Contract Purchase) or PCH (Personal Contract Hire)?

If you have your car through a PCP or PCH, you’re expected to keep it in good condition. Scratches and dents can mean you’re penalised at the end of the contract. If you’re worried about finding a large sum of money to put damage right, cosmetic car insurance is worth considering.

• Next, do you have a high excess on your car insurance?

You can always claim for dents and scratches on your standard car insurance. But if you have opted for a high excess, this option can be unaffordable. In that’s you, it’s worth considering scratch and dent insurance. For example, the excess on scratch and dent insurance usually ranges from £0-£50, ensuring it’s affordable to get your car sorted.

• Do you pay more than average for your policy?

A good scratch and dent insurance policy won’t affect your no-claims bonus. That means you can get perfect paintwork while still holding that precious no claim discount that can help keep your car insurance more affordable.

• Do you park in public car parks, like at work or a supermarket? Or do you park in the street?

If you park in the street or any other public space, your car is at risk of being hit.

• Is your car already damaged?

In most cases, your car will need to be in good condition with no existing damage if you want to take out scratch and dent insurance. Some insurers will also specify a maximum age or mileage for the car.

• Finally, has your car been modified?

If you’ve modified your car with a wrap or body panels, discuss this with your insurance broker first. Scratch and dent insurance may not cover you.

It’s Easy2find cheap scratch and dent insurance

At Easy2Insure our friendly team will search through all the options to find you the right scratch and dent insurance to suit your budget and needs. From supercars to family runarounds, we’ll find you coverage for your peace of mind. Call our helpful team on 0800 9179522 or get a free quote today.