KeyCare, GAP & Excess Protect – What Are They?

Insurance

3 min read

There are some additional levels of cover that do not come with a standard insurance policy – we call them add-ons. Here at ChilliDrive, we can offer you a number of different add-ons to suit your needs.

They can give you that extra layer of protection and help avoid hassle and expense should you find yourself in a pickle. So, it would be worthwhile having a quick look at your existing policy to see if you have any of these and if not, it would be a good idea to consider them.

Bridging the GAP

It’s a nightmare scenario that no-one wants to think about but one which unfortunately happens all too often; you buy yourself a new car (and it doesn’t have to be brand new) only for it to only end up stolen or damaged beyond repair. Heart-breaking!  

Luckily GAP (Guaranteed Asset Protection Insurance to be precise) protects you from financial pain as this covers the difference between the amount that your insurer pays outs and what you initially paid for the car when you bought it. 

Why don’t insurers pay out the full amount I paid?

This is due to depreciation, as car value drops over time, and new cars in particular can drop massively as soon as you drive it out of the dealership. A useful rule of thumb to use is that cars can decrease in value between 15%-35% in the first year or up to 50% over a three-year period. However, this all depends on the manufacturer and model of car. 

Nevertheless, if your car stolen or it is written off, there can be a substantial difference between the amount your insurer is willing to pay out and what you originally paid for…we know, life can be very unfair!

So where does Gap come in?

So if you buy a new car at £20,000 and 18 months later the car is written off, due to depreciation, your car might be valued at only £12,000.  This leaves you £8,000 out of pocket and if you bought the car on finance, that means you’ll still have to pay that £8,000 back to the finance company despite the fact that you have no car!

Gap insurance simply ensures you receive exactly what you paid for the car to begin with – essentially covering the ‘gap’ between the amount you paid and the amount the car is worth.

Caring about Keycare 

We all know that losing valuable possessions such as your keys can be incredibly inconvenient. Everything comes to a standstill as you try to figure out where you last had them. An article in the Sunday Express earlier this year stated that on average, drivers are spending 14 hours every year looking for misplaced keys and it has cost £181 million to replace them. And this is only car keys, what about all the other keys in your life? 

With a Keycare policy* you are provided with peace of mind as it offers you:

• Cover for lost and stolen keys, replacement locks and any call-out charges.

• Cover for broken or damaged keys.

• Cover for locksmith charges if you lock yourself out of your home or vehicle call-out.

• 24 hour, 365 days a year emergency message relay and helpline.

• Access to a nationwide network of locksmiths.

• No excess to pay.

• Any of your keys attached to the fob covered.

We can be sure that nothing in life is guaranteed, so to be prepared and consider Keycare so if your keys do go walkies, you can rely on Keycare to help relieve some of the stress. 

Protect your Excess

When you buy insurance, there is normally an initial excess amount that you must pay if you make your claim called 'Insurance Excess'. Sometimes this initial amount can burn a small hole in your wallet but with an excess protection policy you will have peace of mind as your excess payment will be reimbursed – very handy if you have a really high excess on the likes of your car insurance policy. 

*Keycare only covers personal keys and there are policy limits. All the above add-ons are subject to terms and conditions.