Gap insurance ‘more relevant’ for new cars

Guaranteed Asset Protection (Gap) insurance is more “relevant” for people who are buying a new car as opposed to a second-hand one, Auto Trader magazine has said.

Tom White, a spokesperson for the magazine, said that people considering buying a new car should look around for the most competitive Gap insurance deal.

“We’d always recommend some element of price comparison, but also benefits comparison – there are a number of different Gap type products so cover will vary considerably,” he commented.

Mr White noted that this type of insurance is more important for new and expensive cars, adding that it is therefore not an important consideration for all drivers.

According to the AA, the average car loses around 40 per cent of its value by the end of the first year.

By the end of the third year the average car will have lost around 60 per cent of its value if its owner drives about 10,000 miles a year.

Tags: owner, Insurance, auto trader magazine, different gap type, new cars