Securing insurance coverage for your Land Rover or Land Rover Freelander Sport is crucial to prepare for any unforeseeable event that could happen. Among the different types of automobile insurance out there, one that every Land Rover owner should consider is GAP coverage.

Typically, insurance providers aren’t required to compensate for the retail cost of a Land Rover that was stolen and cut up for parts or destroyed in a collision. This is where Combined Guaranteed Asset Protection (GAP) comes in handy. GAP insurance aims to bridge the gap between the insured value of the Land Rover and any outstanding balance you have with the loan company, ensuring that the creditor’s loan is paid off, and you don’t end up draining out your personal bank account. Here’s an example of how it works:

Suppose you purchased a Land Rover for £35,000, and it was stolen three years later, and the insurance company informs you that they would only pay you £20,000. In this scenario, if you still owe the finance company £10,000, GAP insurance will give you the remaining £10,000, so you are free from any debt you owe the lender.

GAP coverage also caters to Land Rover owners who paid cash and have insurance coverage of £20,000 for a total loss. In this case, if the retail price you paid for the vehicle is more than £20,000, GAP insurance will help bridge the difference between the amount paid by the insurance company and the actual price of the Land Rover, allowing you to get a comparable replacement.

Land Rover owners should note that the value of a vehicle depreciates as it ages. Therefore, if the automobile gets wrecked or stolen, the insurance provider would only pay the depreciated amount of the car. If your outstanding balance owed to the lender surpasses what’s paid by the insurance provider, you’d be liable to make up the difference. GAP insurance steps in to keep you from delving into your pocket to settle the difference in the event of a loss. Here are a few reasons why you should consider GAP insurance:

• Thieves in the UK steal cars at the rate of one per minute, and only one-third of them are ever found.
• The amount of settlements paid by insurance providers for Land Rovers is usually less than what owners initially paid for their Freelander Sports.
• More than 500,000 vehicles are declared a complete loss each year.
• Faster than ever before, vehicle depreciation rates have increased.
• Paying off a car loan out of your pocket can be a significant personal financial burden.

GAP insurance comes in various types or flavors to cater to different exigencies. Here are the most prevalent types of GAP policies available:

Vehicle Replacement Insurance (VRI)

Considered the best GAP coverage option, VRI allows you to replace your vehicle with a new car of similar or better value. Even if the retail price of the vehicle has increased, this GAP coverage ensures you get a new vehicle.

Agreed Value GAP (AVG)

This coverage is ideal for purchasing vehicles at auctions or private sellers. Using Glasses Guide Value, AVG insures the vehicle’s value when it’s purchased, and this policy lasts for three years.

Return to Invoice (RTI)

If you choose RTI GAP coverage, you’re paid the difference between what the insurance provider pays and the original amount you paid for the Land Rover.

Where Can You Find the Best GAP Deal?

It’s advisable to get involved with Land Rover clubs and speak with members who have experience with insurance providers. Note that most insurance providers have limited or no experience with forward control vehicles, Series 2As, and 2s. Most of them only offer quotes for new automobiles.

GAP insurance is the solution you need if you want to bridge the difference between the market value of a vehicle and what the insurance company pays out in a total loss. This type of coverage guarantees that you won’t have to pay off a loan balance owed to a lender if your Land Rover becomes a complete loss.