Car Gap Insurers facing surge in future flood write-off's
Updated: Dec 11, 2020
Rising water levels and extensive flooding in the UK is posing a serious financial threat to motorists who didn't buy Gap Insurance. The same can be said for insurers who provide this popular form of cover, they too will be suffering heavy losses. The environmental climate change in recent years is widely expected to continue and will create further increasing levels of floodwater for across the UK. Homes and businesses can be insured for refurbishment or re-build, but cars and vans when written off, inevitably impose a substantial uninsured financial loss to the motorists.
A spokesman for leading Gap Insurance experts and provider, car2cover.co.uk reminded us that "Motor insurers will only pay what the vehicle is worth at the time of write off. In most cases, that can be a lot less than the price the owner paid for it. If the vehicle is financed or leased, what the motor insurer pays may not be enough to repay the lender, leaving the motorist without a car and with a debt to pay." In both scenario's Gap Insurance would have been a good investment. car2cover.co.uk report a 'substantial' increase in enquiries for Gap Insurance in light of this increasing risk. With over 730,000 vehicles being written off by accident, fire and theft every year, according to HPI, insurers look to be in for a torrid time ahead. If you have any questions about Gap Insurance, the team at car2cover.co.uk will be happy to provide the answers. Email firstname.lastname@example.org or call 01438 870615.