Industry News from Yes Insurance

Guaranteed Asset Protection (Gap) insurance is one of the most relevant types of cover for drivers of new cars, according to an industry spokesperson.

Tom White, a spokesperson for Auto Trader, said that older cars depreciate in value more slowly than new vehicles and drivers should therefore consider this when taking out cover.

Furthermore, drivers should look into the type of insurance they have as there are varying plans on offer, for example whether cover should simply pay off any outstanding loans or replace the car like-for-like.

He said: "The newer and higher value of the vehicle, the greater the depreciation will potentially be and therefore Gap will have greater relevance."

According to the AA, by the end of the first year of ownership a new car will typically have lost up to 40 per cent of its value.

Furthermore, if a driver does 10,000 miles a year then a new car will have typically lost 60 per cent of its value by the end of the third year.

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