The Importance of GAP Insurance for Business Owners
When it comes to business, it is always better to be safe than sorry and especially when it comes to expensive assets. It is unfortunate, but many business owners do not have adequate protection in place for their company car or fleet of vehicles and this could cost a fortune and set the company back massively if something were to happen to an automobile.
Insurance Pay Outs
Business owners will, of course, have business car insurance in place for protection, but this is not enough. Many motorists are unaware, but if the vehicle were to be written off then the comprehensive insurance policy would only pay out the current market value of the vehicle. Depreciation can be as much as 70% after just three years of ownership, so this could leave the company out of pocket by thousands of pounds.
Not only could it leave the company out of pocket, but it will also leave you without a vehicle and possibly struggling to get a replacement. Having a vehicle for transportation is crucial in many industries so it could also bring the entire operation to a standstill. Fortunately, there is a great solution to this problem that is a smart purchase for business owners and particularly if employees spend a significant amount of time on the road (increasing the likelihood of a write off).
This solution is GAP insurance – an option insurance policy that will cover the shortfall between the insurance pay out and the amount that was paid for the vehicle or amount outstanding on the finance agreement. This will protect your investment and allow you to quickly get an adequate replacement without interfering with company finances.
Some business owners may feel that this is an unnecessary expense and that their employees will never have a vehicle written off, but accidents occur all to frequently. In addition to this, a car is declared a total loss if stolen and or damaged by fire or flood. Car theft is alarmingly common in this country and criminals will often target business cars (especially if they are of high-value), so it is certainly worth investing in GAP insurance – it is better to be safe than sorry.
Finding Adequate Protection
GAP insurance is best obtained from a specialist like ALA as this is how you will find the best and most flexible level of cover. Additionally, specialists like this can often provide fleet GAP insurance to cover all of your cars and commercial vehicles under one policy.
GAP insurance is a smart purchase for business owners as write offs occur all to frequently and this could leave your business short thousands of pounds. Get the protection that you need and peace of mind with a GAP insurance policy today.