Motorcycle Courier Service

Protect your motorcycle with GAP insurance

Posted by Sue Willis on Saturday, October 27, 2018 Under: Guest Motorcycle Articles
Imagine you just purchased a brand new Suzuki GSX-R1000 motorcycle two months ago, and it was stolen right before your eyes as you were eating in your favorite restaurant. Not to worry, you are fully protected by the full coverage motorcycle insurance policy your motorcycle lender required you to get. Right?



In most cases, not exactly, if you look into the details of the motorcycle insurance policy you purchased. The reason is that most full coverage motorcycle insurance policies will cover for total loss such as theft, accident or natural disaster, but these policies typically only cover the depreciated market value of the motorcycle not the outstanding value of your motorcycle loan.

Therefore, if you opted for a zero down payment motorcycle loan or perhaps a low payment credit card motorcycle loan, your Suzuki GSX-R1000 may have depreciated faster than you have paid down the value on your motorcycle loan. Since your motorcycle insurance policy will most likely only cover the depreciated market value of your Suzuki GSX-R1000, you are responsible for the difference in the value the insurance company pays you for your stolen or totaled motorcycle and what you actually owe on your motorcycle loan.

In the event a motorcycle is stolen or totaled, motorcycle buyers in the first two years of a motorcycle loan are the most susceptible to not being reimbursed enough from their motorcycle insurance policy to cover the value of their motorcycle loan. So what is a motorcycle buyer to do to protect against the outstanding value of their motorcycle loan?

The answer for some motorcycle buyers lies in a little known policy called gap insurance. Gap insurance is a total loss insurance policy that will pay the difference of the amount your motorcycle insurance company pay's you for a total loss on your motorcycle and the value of your motorcycle loan.

Here is a quick example. Let's say your Suzuki GSX-R1000 has a going depreciated market value of $7500, yet you owe $9,500 on your motorcycle loan for it. In the event of total loss such as theft or an accident, your motorcycle insurance policy will likely only pay you the used market value of $7500. However, you still owe your motorcycle lender $9500 so you have a gap of $2,000 ($9500-$7500=$2000). Gap insurance covers the $2000 gap that you still owe to the motorcycle lender since the motorcycle insurance company only paid you $7500 for your stolen or totaled Suzuki GSX-R1000.

Is gap insurance for everyone? Not exactly, it really depends on your financing arrangement. Here are some tips in deciding if gap insurance is right for you.

1. If you entered a zero down payment motorcycle loan especially for an extended term like 48-84 months gap insurance is probably a good idea for you. On the other hand, if you put a large down payment down with your motorcycle loan your probably better without 
gap insurance.

2. If you are getting a motorcycle loan on a motorcycle model that has a history of depreciating very fast, gap insurance is likely a good alternative for you. To determine this, compare the depreciation rate of your motorcycle with the pay down of the principal on your motorcycle loan. This will give you an indication if you would be upside down if your motorcycle was stolen or totaled.

3. Check all of the details of your full coverage motorcycle insurance policy to make sure that it does not cover the gap between the market value of your motorcycle and the value of your motorcycle loan. A very small percentage of motorcycle insurance policies cover the value of your motorcycle for the first year without considering depreciation. If you are lucky and your full coverage insurance policy covers 100% of the motorcycle without considering depreciation there is little need for gap insurance.

4. Are you purchasing a used motorcycle? If so there is probably not an option for you to purchase gap insurance because most gap insurance policies are only good on brand new motorcycles. As a result, used motorcycle buyers are advised to place down a decent size down payment and opt to pay of the loans in the shortest possible time.

5. What is the cost of the gap insurance policy? Does this cost justify the benefit?

Overall, depending on the financing situation gap insurance can provide some excellent financial security to motorcycle buyers purchasing their motorcycle with a motorcycle loan. However, each motorcycle buyer's situation is different and the above five factors can be helpful in determining if gap insurance is the right decision.

In : Guest Motorcycle Articles 


Tags: motorcycle gap insurance warrington   

Categories

Document Delivery Service 

Small Parcel Delivery Service 

Medical / Veterinary Courier

Secure Valuables Transportation  

Passport / Visa Delivery Service

Parts / Samples Transportation

Cremation Ashes Courier

Warrington Motorcycle Couriers

Liverpool Motorcycle Courier 

Manchester Motorcycle Couriers

Merseyside Motorcycle Courier 

North West Motorcycle Couriers

Cheshire Motorcycle Courier 

Greater Manchester Courier

North Wales Motorbike Courier

UK Motorcycle Courier Service 

Same Day Motorcycle Couriers

Same Day Courier Warrington

Same Day Courier Manchester

Same Day Courier Liverpool

UK Overnight Motorbike Courier

Next Day Delivery

Spartan Motorcycle Couriers

Motorcycle Courier Service

Same Day Motorcycle Couriers

Motorbike Couriers

Medical Couriers

Facebook Motorbike Couriers

Motorcycle Couriers

Spartan 24 Hour Security

Security Guards

Door Supervisors

Event Security

Manned Security

Warrington Security Guards

Door Supervisors

Commercial Cleaning

Event Security

Door Supervisors

Warrington Guards

Manchester Guards

Corporate Event Security

Hotel Security

Motorcycle Patrols

Student Halls Security

Security Guards Warrington

Security Guards Manchester

Medical Couriers

Warrington Couriers

Cremated Remains Courier

Medical Couriers

Document Courier

Door Supervisors Warrington

Female Door Supervisors

Security Guards

Security Services

Manned Security

Security Blog

Event Security

Manned Security

Apartment Security

Casino Security

Residential Security

Landlord Security

Vacant Property Security

Hospital Security

Door Supervisors Manchester

Security Blogs

Manchester Couriers

Cheshire Couriers

North Wales Couriers

Manchester Event Security

Merseyside Event Security

Cheshire Event Security

Security Guards

Door Supervisors

Hotel Security

Same Day Couriers

All rights reserved. Spartan Motorcycle Couriers. 2013.