Drivers think of gap insurance usually when they buy a new car at dealership. They treat it as a sort of “bad event” insurance policy. How true because let’s face it - this is the purpose of almost every insurance. Still, they tend to forget what gap insurance is good for and in what circumstances it is especially advisable to purchase. New cars undergo the economic process of depreciation quite fast (in fact you could say quite rapidly). All new cars, trucks, SUVs and vans lose a lot of value from the day of purchase. Should anything bad happen to the vehicle within the first months of use, gap insurance will cover the difference between what the motor insurance company will pay and the car’s value at the date of the event. Gap insurance has the biggest effect at the beginning of car ownership, especially if it is bought via a lease or loan. Another good reason for getting GAP for the new vehicle is in the case of a write-off, the vehicle holder is likely to get back the value of the car. All new cars are very safe as they must be compliant with strict safety standards.