It pays to mind the GAP
If you’re buying a new bike on finance, chances are the salesman will try to sell you a GAP insurance policy.
In the case of a total write-off, a Guaranteed Asset Protection policy will cover the shortfall between the purchase price or finance balance and your insurance payout, which will be affected by depreciation. GAP insurance protects you against the risk of receiving payment that’s based on the current value of the bike rather than its original value. What’s not to like about that, hey?
Indeed, in many cases, GAP insurance can be a useful addition to a finance package because it protects you from stingy insurance payouts in the event of theft or a write-off. However, you don’t need to purchase it at the same time as you take out finance. You have up to 180 days from when you purchase your bike to take out GAP insurance, so don’t feel pressured by the salesman at the point of sale.
If GAP insurance is something you feel like you might be interested in, make sure that you shop around online to get the best deal. But, more importantly, make sure you take your time, do your research and get the insurance that’s most suitable for you.