Does Direct Line Do Gap Insurance
Does Direct Line Do Gap Insurance?
Gap insurance, also known as guaranteed asset protection insurance, is a type of insurance that covers the difference between the amount you owe on a financed vehicle and the amount you can receive from a total loss settlement. Gap insurance is often required if you lease a car. It may also be beneficial if you finance a car with a small down payment or if you have a loan with a high interest rate. If you're considering gap insurance, you may be wondering if Direct Line offers this type of coverage.
What is Direct Line?
Direct Line is one of the UK's largest car insurance providers. They offer a range of insurance services, including car, van, motorcycle, home, pet, travel and life insurance. They also offer a range of add-on services and cover options, such as breakdown cover, legal cover and replacement car cover.
Does Direct Line Do Gap Insurance?
The short answer is yes, Direct Line does offer gap insurance. Gap insurance is available as an add-on to Direct Line's comprehensive car insurance policies. This type of cover pays out if there is a difference between the value of your car and the amount you owe on it if it is written off or stolen. It is designed to protect you from any financial shortfall.
What Does Direct Line Gap Insurance Cover?
Direct Line gap insurance covers the difference between the amount you owe on your car loan or lease and the amount you can receive from a total loss settlement. It also covers any additional costs that may arise from the total loss of your vehicle, such as towing costs, storage fees, and taxes. Gap insurance does not cover any of the costs associated with replacing your car.
Does Direct Line Gap Insurance Cover Negative Equity?
Yes, Direct Line gap insurance will cover any negative equity you may have on your car loan or lease. Negative equity is when you owe more on your car loan than the value of the car. This can occur when the value of your car depreciates faster than you can pay off the loan. If your vehicle is a total loss and you have negative equity, Direct Line gap insurance will cover the difference.
How Much Does Direct Line Gap Insurance Cost?
The cost of Direct Line gap insurance will vary depending on the type of vehicle you have and the amount of cover you need. Generally speaking, the more expensive the car, the more expensive the gap insurance. The cost of Direct Line gap insurance is usually added onto your existing car insurance policy. It is important to note that gap insurance can only be purchased at the time of your car purchase or when you first take out a car insurance policy.
