Which Gap Insurance for BMW?

Why would you want Gap Insurance for your BMW? If you do decide that Gap cover is right for you, which type of Gap Insurance for the BMW is the right choice?

Gap Insurance is not a legal requirement in the UK currently, so you do not have to have it at all. As with most types of insurance, it is down to a personal choice as to whether you have any guaranteed asset protection at all.

If you are considering Gap Insurance for your BMW, then what are your choices, and which situations may they suit you to have cover?

Gap Insurance for BMW

There are a few basic types of Gap Insurance cover available for your BMW.

Many companies and individuals choose to take BMW’s on a form of lease or Contract Hire agreement, the type of finance where you never own the vehicle. The vehicle always remains the property of the lease company, and you simply hand back the vehicle at the end of a specfified period.

Should a Contract Hire vehicle be written off as a total loss, then the person or company who has taken the vehicle out on the lease may be subject to certain liabilities. The agreement will normally ask them for the ‘market value’ of the vehicle at the time of the loss (this is what your own motor insurance should cover). The lease agreement may also require you to pay a proportion of the outsatnding rentals on the agreements (this is not normally covered by your motor insurance policy). This means that you could be left with a bill for these payments, and no vehicle to show for it.

Contract Hire Gap Insurance for you BMW can protect this ‘outstanding rental’ element. By taking a policy for your contract hire agreement, you could save yourself a nasty surprise!

If you take the vehicle on another form of finance, or indeed if you pay cash for the vehicle, then you do have a few more choices.

You could opt for a Finance Gap Insurance policy of you have a finance agreement linked to the vehicle. This type of cover is essentially the same as a Contract Hire Gap policy in that it will cover between the vehicle market value, and the outstanding finance settlement.

So if you have taken your BMW on a Personal Contract Purchase, Lease Purchase or Hire Purchase style agreement, then a Finance Gap Insurance policy from EasyGap can protect any financial shortfall that may arise, should the vehicle be written off.

Another option for a Gap Insurance policy for your BMW would be a Return to Invoice style cover. This will protect between the vehicle market value, and the original invoice price you paid.

A third option would be Vehicle Replacement Insurance for your BMW. This protects the difference between the vehicle market value, and the cost of the vehicle equivalent to the on eyou originally bought. So if you bought a brand new BMW 320 M Sport Coupe, then the cost of the equivalent model in the future, even if (and here is the important point) the cost has risen from the original price you paid.

If you have bought your vehcile privately, at auction or simply have owned the vehicle for a period of over 180 days (the normal time limit for other levels of Gap Insurance), then one consideration may be a Shortfall Gap Insurance policy. As you do not have a qualifying purchase to refer to, the price you can protect is defined by Glass’ Guide valuation serviceĀ on the day you purchased the policy, not the BMW.

Which Gap Insurance for BMW?

At the end of your search for a Gap Insurance policy for your BMW, the choice as to which Gap Insurance protection policy is your choice. Everyone may have a different viewpoint on this, but we hope we can give you enough detail in order for you to make an informed choice.

If you have any further queries regarding our levels of cover, simply give our sales team a ring on 0800 195 4926.

Gap Insurance for your BMW has never been this Easy!



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