Customer Co-ordinator for the website, Vicky Johnson explained: “We surveyed more than 150 motorists recently and around 85% told us they knew how much they had bought the car for but didn’t realise how much their vehicles were worth today. “Buying a car is a massive financial commitment in economically uncertain times so it was interesting people didn’t realise how quickly they go down in value with time. “Our research also found the majority of motorists purchase annual comprehensive motor insurance to protect themselves in the event of an accident or malicious damage. They rarely consider the consequences if their insurance company pays out the current market value of their vehicle and not the original purchase price, leaving them out of pocket.” In recent years people have become all too aware of the rising cost of motoring and car insurance in particular. According to the confused.com’s Towers Watson Index, premiums have risen by 61% in just five years. In times of austerity, prioritising finances has become necessary for many who are struggling to cope with the ever rising demand from mortgage, rent and bill payments. Some of the best selling cars in the UK are generally reasonably priced vehicles, suggesting people are giving more thought to the type of car they own. But cars still remain one of the single largest purchases an individual will make in proportion to their income. Vicky added: “Understandably motorists are concerned about the state of their finances considering the economic climate, but cars are still being purchased. According to the Society of Motor Manufacturers and Traders (SMMT) the UK motor industry saw an increase in new car registrations during every month so far this year.” The number of new car registrations increased by nearly 8% to 162,288 units, the biggest increase the industry has seen in 23 months. Registrations during the first five months of 2012 improved by 2.6% to 868,166 units. This is an increase of more than 21,653 units compared to last year (2011). Vicky continued: “During difficult financial times, how would you cope if you had an accident, your car was written off and your motor insurance company paid a minimal amount? Could you afford to replace your car like for like? Would not having a car impact on your ability to work? “For example, imagine you paid £20,000 for your vehicle, which then falls in value after three years’ time to just over half this at £11,000. “If your car is then written off in an accident or stolen, your insurance company will only pay out for the value of the car at the time of the incident – leaving you £9,000 out of pocket. If you had purchased a GAP insurance policy from us this would not have happened.” This is why GAP insurance is worth considering. It is designed to protect you if your vehicle is written off and will pay the difference between your motor insurance company payout and the original value of the vehicle. For further details, please visit www.gapinsurance.uk.net, log on to www.facebook.com/pages/GAP-Insurance/299003596865235 or follow the company on Twitter by visiting www.twitter.com/InsuranceGAP.. Alternatively, please call Vicky Johnson on 01934 529 427. For further media details, please contact Porcupine PR on 01278 446801 or email [email protected]. Photograph caption: Customer Co-ordinator for www.gapinsurance.uk.net, Vicky Johnson. A PDF of this release is available here. Notes to editors: With costs in mind, below are the top four best-selling new cars in April including how much they cost to purchase, average depreciation, and how much a GAP insurance quote would be for each car to protect this. Ford Fiesta 1.4 H/b 5d Zetec – £3,225* Retail cost after three years – £7,100 Average depreciation in three years: £6,125 GAP quote: £87** GAP quote: £89*** Vauxhall Corsa 1.4 H/b 5d SXi – £13,554* Retail cost after three years – £6,800 Average depreciation in three years: £6,754 GAP quote: £87** GAP quote: £89*** Ford Focus 1.6 H/b 5d Zetec – £15,635* Retail cost after three years – £7,400 Average depreciation in three years: £8,235 GAP quote: £109** GAP quote: £115*** GAP quote: £121**** GAP quote: £127***** Vauxhall Astra 1.4 H/b 5d SXi – £17,825* Retail cost after three years – £6,225 Average depreciation in three years: £11,600 GAP quote: £109** GAP quote: £115*** GAP quote: £121**** GAP quote: £127***** *All prices based upon Glass Guide publication with average mileage of 10,000 miles a year – 30,000 miles All GAP prices quoted from – specific terms and conditions apply. **Based upon 36 month cover with £5,000 claim limit. *** Based upon 36 month cover with £7,500 claim limit. **** Based upon 36 month cover with £12,500 claim limit. ***** Based upon 36 month cover with £17,500 claim limit. ENDS