What is insurance gap cover?
Sometimes when a vehicle is insured for a certain amount and it suffers a total loss, you don’t get paid back the full worth of the car by your insurance company. This prevents you from being able to get a new car straight away to replace the one you lost, as you will still need to pay what is still owed on your vehicle.
What insurance gap cover does is that it will pay off the remainder of the car to your financial provider whilst trying to buy a replacement vehicle. It can also be described as the difference between the actual cash value of a vehicle and the balance still owed on the financing.
In the medical industry insurance gap cover is a type of insurance cover that will provide you with cover in instances where you have a gap in your medical care.
A gap may arise when there is a difference between what specialists charge and what your medical aid provides cover for. This type of cover is underwritten by short-term insurance companies, so a short-term licence insurance licence is required. Operations also fall within the scope of the Short Term Insurance Act.
To benefit from this type of cover, you need to be a member of a medical scheme first. It is not always a standalone product.
Industry trends show that more financial advisors are opting for a combination of relatively low tier medical aid cover combined with gap cover. This is as a result of sky-rocketing costs associated with medical procedures in this country.
By getting insurance gap cover you will have the peace of mind knowing that you are covered. Paying your car off won’t be a hassle and your medical needs will be attended to.
Make sure that you read the fine print thoroughly before signing any insurance contracts,