Gap Cover
Provides cover for exposure shortfalls following a Motor Total Loss caused by an accident, fire or theft.
There are a number of variants to this type of cover, but broadly it provides shortfall protection following a total vehicle loss to an auto vehicle, covering the difference between the cost of replacement vehicle versus the original vehicle or the remaining amount outstanding under a finance contract after an insurance pay-out.
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Various Types of Gap Cover
There are various types of cover but generally they ether protect the customers financial shortfall exposure or their monetary shortfall exposure that occurs at the time of a vehicle total loss.