How GAP Insurance Can Help
GAP (Guaranteed Asset Protection) insurance is designed to cover the difference between your car’s market value and the amount left on your finance agreement. It’s optional, but can be a financial lifesaver if your car is written off early in the finance term when depreciation is steep.
If you don’t have GAP insurance, it’s worth checking your finance agreement to see if it includes any cover for shortfalls.
Will Crashing A Financed Car Affect My Credit Score?
Not directly. But if you don’t repay any remaining balance owed after a write-off, it could negatively impact your credit.
Can I Keep The Car If It’s Written Off?
Sometimes, depending on the write-off category and if your finance company agrees. You’d usually need to buy the car back from the insurer.
What If The Accident Wasn’t My Fault?
Your insurer may recover costs from the other party’s insurer, and your no-claims bonus may be protected (if you’ve added that to your policy).
