GAP Insurance: Why it’s essential for owners of financed cars

Modern insurance policies demand flexibility, focusing on supporting electromobility and providing solutions for business customers.

Car owners often underestimate the risk of losing the value of their vehicle due to theft or total loss. However, GAP insurance provides financial protection by covering the difference between the original price of the vehicle and its current market value. Oliver Kiss , Country Manager of DEFEND INSURANCE GROUP in Slovakia, notes that modern insurance policies offer numerous benefits and can address the growing demand for electric vehicles.

Why should vehicle owners consider GAP insurance, especially in light of the current situation where used car prices are stabilising?

The choice of car type has a significant financial impact that goes beyond the initial purchase. GAP insurance is crucial as it covers the difference between the vehicle's current market value and its original purchase price, thereby compensating for depreciation. Even though used car prices are stabilising, their value may be much lower than the purchase price in the event of total loss or theft. GAP insurance allows the owner to cover this difference and secure the necessary funds for purchasing a new vehicle.

What is the key added value of this type of insurance compared to competitive products on the Slovak market?

Our DEFEND Gap insurance stands out for its simplicity and flexibility. When taking out the policy, you only need to provide the invoice, without the need for additional photographic documentation. The insurance is independent of comprehensive coverage, meaning that clients can switch providers at any time. For some variants, comprehensive insurance isn’t even required. Additionally, our policy has no mileage restrictions for coverage purposes, which is a significant advantage for many clients.

How do you respond to the growing interest in electric and hybrid vehicles, particularly in terms of extended warranties and GAP insurance?

Electromobility is a highly relevant topic today. We have been offering DEFEND Gap insurance for electric and hybrid vehicles since 2018. In addition, in 2020 we launched the DEFEND Car Protect extended warranty, covering all key components of electric vehicles, including the charger and battery. Our products are designed to provide comprehensive protection for both new and used vehicles.

What flexible options do you offer customers when setting the parameters of GAP insurance, such as selecting the coverage limits and the insurance period?

We offer a wide range of options for customers to tailor their policies. They can choose the coverage limits, and the duration of the insurance based on their individual needs, optimising their costs. Selected DEFEND Gap insurance programs are also available online on our website, defendinsurance.eu.