Motorbike gap insurance is the smartest way to protect your financial investment. Not many people realise, that when it comes to your own motor insurance, once your motorbike has been written off or stolen, your motor insurer will only award you with the amount your bike was valuated on THIS DAY. This could leave you with a rather significant shortfall, if you consider depreciation.
This is exactly where motorbike gap insurance would come in. It is a sad fact but all the same a true one, that motorbike's are easier targets for criminals, also if a bike is involved in what may appear as a small bump or accident, the damage is likely to be a lot more significant, than it would be on a bulky car. Due to these factors, unfortunately it is more likely for a motorbike to be written off.
If you did ever find yourself in this unfortunate position, it goes without saying that the last thing you would want is added financial strain. If you had purchased your motorbike for 15,000, due to depreciation lets imagine that in 2 and a half years it is now worth 9,000. This is the amount you would be given by your motor insurance, meaning that without gap insurance, you would find yourself with a 6,000 shortfall of your original invoice price.
Finance Gap insurance is the most basic level of cover you can acquire for your motorbike. This type of gap insurance will rather simply just pay the difference between the valuation of your bike on the day it is written off (what your motor insurance give you) and the amount that you still owe to your finance company. This leaves you standing in the same position as before you purchased your bike, leaving you to focus on the more important things like getting over the shock. Imagine if you had to find the remaining payments yourself, you now find yourself without your motorbike and with thousands of pounds to find to pay your finance company, who have the legal right to demand this money within 28 days.
Return to invoice gap insurance, as we have already demonstrated, your vehicle will almost certainly lose value over time. You will be awarded a valuation on the day of it being written off, if you are involved in an accident or the subject of vehicle theft. This type of gap insurance will literally pay the difference between the valuation that your motor insurance award you with and your original invoice price, so looking at the example above, gap insurance would pay the 6000 to ensure that you are in the same financial position as before you had the accident/bike was stolen. This leaves you with the same amount again to spend as you see fit.
Vehicle replacement gap insurance for your motorbike, motorbikes are changing constantly, manufacturers are in competition with each other and specifications are improving constantly. Therefore it is almost a certainty that costs are going to increase. Therefore if your bike happens to be written off or stolen, simply gaining your invoice price back is not likely to be enough to buy the same type of bike again. This type of gap insurance will pay the difference between your motor insurance valuation and the difference you would need on top of that to buy the same bike again, age, mileage etc, that you originally rode away from the dealership on.
After you have decided what type of gap insurance is best for you and your motorbike, you need to decide on a claim limit. A claim limit is an extremely important part of your gap insurance cover, however nobody can truly know how much any vehicle is going to be worth in a certain amount of time and so it is an estimate, taking everything into account about what claim limit you should choose.
If you are buying gap insurance from an online broker, ensure that they always ask you what claim limit you would like. Firstly, decide how long you are likely to keep your bike for, then choose that amount of cover. Secondly, ensure that your claim limit amount is going to be big enough to perform, taking every situation into account. For example, sticking to our above example, if you had bought your bike for 15,000, when it was written off it is now worth 9,000. With your 6,000 shortfall, a 5,000 claim limit would still leave you short, return to invoice or finance gap insurance would perform with a 7500 claim limit. This would be a big enough claim limit to perform and pay back your outstanding balance/original invoice price. However if you are choosing vehicle replacement gap insurance, a slightly bigger claim limit may be likely. If you had purchased your bike for 15,000, in two years the same type of bike may now be 18,000. This would mean with your 9,000 valuation, you would need a further 9,000 to be able to buy the same amount again. This of course means that a 7500 claim limit is not big enough to perform but a 10,000 claim limit is sufficient.
Obviously, nobody can predict exactly how much a vehicle is going to be worth in a years, two years, three years time. So a prediction is the only thing you can go on, taking everything into account, the economy, styles, fashion, ensure that your claim limit will be big enough to perform, thinking of how long you would like to cover your bike for and how much it may depreciate in that time.
Nobody every believes it is going to be them who is involved in an accident or the subject of theft but unfortunately these things do happen and they have to happen to someone. Atleast with gap insurance you can walk away from a situation in the same position as before, with choices. Rather than being stuck in a financially devastating situation which definitely will not be welcomed due to what you have already been through. Protect yourself and your bike. It really is not worth the risk, it could literally save you thousands of pounds.
This is exactly where motorbike gap insurance would come in. It is a sad fact but all the same a true one, that motorbike's are easier targets for criminals, also if a bike is involved in what may appear as a small bump or accident, the damage is likely to be a lot more significant, than it would be on a bulky car. Due to these factors, unfortunately it is more likely for a motorbike to be written off.
If you did ever find yourself in this unfortunate position, it goes without saying that the last thing you would want is added financial strain. If you had purchased your motorbike for 15,000, due to depreciation lets imagine that in 2 and a half years it is now worth 9,000. This is the amount you would be given by your motor insurance, meaning that without gap insurance, you would find yourself with a 6,000 shortfall of your original invoice price.
Finance Gap insurance is the most basic level of cover you can acquire for your motorbike. This type of gap insurance will rather simply just pay the difference between the valuation of your bike on the day it is written off (what your motor insurance give you) and the amount that you still owe to your finance company. This leaves you standing in the same position as before you purchased your bike, leaving you to focus on the more important things like getting over the shock. Imagine if you had to find the remaining payments yourself, you now find yourself without your motorbike and with thousands of pounds to find to pay your finance company, who have the legal right to demand this money within 28 days.
Return to invoice gap insurance, as we have already demonstrated, your vehicle will almost certainly lose value over time. You will be awarded a valuation on the day of it being written off, if you are involved in an accident or the subject of vehicle theft. This type of gap insurance will literally pay the difference between the valuation that your motor insurance award you with and your original invoice price, so looking at the example above, gap insurance would pay the 6000 to ensure that you are in the same financial position as before you had the accident/bike was stolen. This leaves you with the same amount again to spend as you see fit.
Vehicle replacement gap insurance for your motorbike, motorbikes are changing constantly, manufacturers are in competition with each other and specifications are improving constantly. Therefore it is almost a certainty that costs are going to increase. Therefore if your bike happens to be written off or stolen, simply gaining your invoice price back is not likely to be enough to buy the same type of bike again. This type of gap insurance will pay the difference between your motor insurance valuation and the difference you would need on top of that to buy the same bike again, age, mileage etc, that you originally rode away from the dealership on.
After you have decided what type of gap insurance is best for you and your motorbike, you need to decide on a claim limit. A claim limit is an extremely important part of your gap insurance cover, however nobody can truly know how much any vehicle is going to be worth in a certain amount of time and so it is an estimate, taking everything into account about what claim limit you should choose.
If you are buying gap insurance from an online broker, ensure that they always ask you what claim limit you would like. Firstly, decide how long you are likely to keep your bike for, then choose that amount of cover. Secondly, ensure that your claim limit amount is going to be big enough to perform, taking every situation into account. For example, sticking to our above example, if you had bought your bike for 15,000, when it was written off it is now worth 9,000. With your 6,000 shortfall, a 5,000 claim limit would still leave you short, return to invoice or finance gap insurance would perform with a 7500 claim limit. This would be a big enough claim limit to perform and pay back your outstanding balance/original invoice price. However if you are choosing vehicle replacement gap insurance, a slightly bigger claim limit may be likely. If you had purchased your bike for 15,000, in two years the same type of bike may now be 18,000. This would mean with your 9,000 valuation, you would need a further 9,000 to be able to buy the same amount again. This of course means that a 7500 claim limit is not big enough to perform but a 10,000 claim limit is sufficient.
Obviously, nobody can predict exactly how much a vehicle is going to be worth in a years, two years, three years time. So a prediction is the only thing you can go on, taking everything into account, the economy, styles, fashion, ensure that your claim limit will be big enough to perform, thinking of how long you would like to cover your bike for and how much it may depreciate in that time.
Nobody every believes it is going to be them who is involved in an accident or the subject of theft but unfortunately these things do happen and they have to happen to someone. Atleast with gap insurance you can walk away from a situation in the same position as before, with choices. Rather than being stuck in a financially devastating situation which definitely will not be welcomed due to what you have already been through. Protect yourself and your bike. It really is not worth the risk, it could literally save you thousands of pounds.
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