Confused.com launches ‘gap' insurance product

Confused.com has launched a new ‘gap' car insurance policy for drivers, which will protect them against depreciating car values. Until now gap insurance has been the domain of car dealerships, but Confused.com - in association with the Future45ltd - has cracked the market wide open. For the first time ever, drivers, worried about plummeting vehicle values will be able to find easy and accessible policies which will protect them against the difference between a typical comprehensive insurance policy cash pay-out and the value of the car today.

Will Thomas, head of motor insurance, at Confused.com, said: "Car Depreciation, or ‘gap' insurance as it's commonly known, has been a secret for far too long. We're delighted to let the cat out of the bag as savvy motorists can now quickly and easily buy polices to protect themselves against falling car values.

"Most people know that new cars drop in value as soon as they're driven off the forecourt. While the value they lose is sometimes exaggerated, depreciation is more than an urban legend, with some cars dropping up to 60% of their value by the end of its first three years. This means that if a driver's car is a write off or stolen, they may only receive £4,000 despite paying £10,000 for it only a few years previously. This could be very disappointing for the owner and prohibit the purchase of a new car. However, if the owner has a Car Depreciation insurance policy, they will receive the difference between those two sums."

The Car Depreciation insurance is available through Confused.com on new cars or cars that have been owned for up to seven years. They can be owned outright, have been bought on finance or with a personal loan, can be contract hire or even on a lease agreement. There are also cover options for taxi drivers and driving instructors. With nine optional upgrades available, including a special excess buster option, the policy offers total flexibility and starts from as little as £82 per year.