Motorcycle GAP Insurance
Buying a brand new motorcycle can be one of the best feelings in the world. But if the worst happens, if your bike is stolen or damaged beyond repair and written-off, the experience could quickly turn bad, which is where Motorcycle Gap Insurance comes in.
Your new motorcycle insurance policy will only pay out what the bike is worth at the time, and it’s likely to be much less than you paid. That’s because new bikes can lose up to 40% of their value after their first year.
What Is GAP Insurance?
Motorcycle GAP insurance protects you when you make an insurance claim and receive a payout that’s less than the cost or value of the motorcycle when you bought it. It will pay you the difference so you don’t lose money.
It’s mostly associated with new bikes, although you can also buy GAP insurance for a second hand bike under seven years old, after this the car is deemed old and insurance companies will not cover the gap.
Why Take Out GAP Insurance?
It’s well-known that new bikes depreciate the minute they are rode off the forecourt.
If you ride 10,000+ miles a year on your new motorcycle, it could lose over 50% of its value after three years. The rate of depreciation depends on make, model and usage, but as an example, a £10,000 motorcycle could be worth just £4,000 after three years.
If you bought your motorcycle with finance, you could be stuck making repayments for a vehicle you no longer have. And if you paid outright, you will be seriously out of pocket.
Taking out a Motorcycle GAP insurance policy prevents these scenarios from becoming reality.
When You Don’t Need GAP Insurance
The insurance policy should allow you to replace your bike with another one of a similar age and condition when yours was written off. If this is all that you require, a GAP policy may not be right for you.
You will need Motorcycle GAP insurance if you want to replace your motorcycle with a brand new one. It’s also very useful if you took out finance to buy your new motorcycle as the payout won’t be enough to clear the outstanding debt, so you’ll be stuck paying for a written-off vehicle.
Buying GAP Insurance Through A Dealer, Or Direct
Most Motorcycle dealerships offer you GAP Insurance when you are buying your motorcycle. This makes it more straight forward as they can add the GAP Insurance to your finance if you are buying your motorcycle that way. However it usually costs a bit more than buying the GAP Insurance yourself as they take a commission for selling the insurance to you.
Buying the GAP insurance yourself is like buying your insurance online. Once you have your quote your can either pay for it outright or, like insurance, most companies let you pay by monthly instalments.
We have an exclusive offer for GAP Insurance getting you another 10% off your quoted price by clicking the button below and entering the code MOTOGAPALA10 when you checkout