You as an ardent biker are possessive and protective towards your newly bought bike. You have probably raised a loan to buy your most desired brand of motorcycle and are paying almost 25 percent of your salary as installment. What happens if the most beloved possession is taken away or damaged right in front of your eyes? You are aghast? Probably not, as you have full insurance coverage which according to your lender is compulsory to obtain as a security.

So you can breathe easy. Now here is the catch, we feel secure once the motorcycle insurance is done for damage, theft or defaulting however what most of us are not aware is that this insurance coverage does not cover the whole value, rather they just cover the depreciated current market value of the motorcycle. So in most of the cases you are left with a significant gap to pay from your own pocket.

In cases where the biker has taken a loan on zero or low down payment the bike would depreciate at a faster rate than the time you require paying down your loan. In such a case you are responsible for the difference in what your insurance company is going to pay you in case of theft or damage and in what you owe to the credit loan company. This gap falls quite heavy on the consumer's pocket and so should be well thought of while getting the insurance done.

The most reasonable and common solution for bike riders lies with barely common policy known as - Guaranteed Asset Protection (GAP) Insurance coverage. As the name suggest this insurance covers the existing gap between what is offered by the motorcycle insurance company and what is to be paid to the loan lender. This insurance policy comes as a pleasant breather for bikers in case of total loss. However one may wonder is it appropriate for all motorcycle buyers? The answers is no, it primarily depends on your loan financing contract for buying motorcycle. Below are some guidelines for this:

1. In case where you have opted for loan with zero or low down payment with an extended tenure, the Gap insurance makes most sense. In such a case the motorcycle market value would be depreciated long before you have paid off your loan.

2. If you have bought a brand which has the history of depreciating quickly, gap insurance is ideal solution. In such situation obviously your motorbike value would depreciate rapidly leaving you with bare minimum claim in advent of any loss.

3. Examine all intricate details of your full or comprehensive motorcycle insurance coverage to be certain that it does not covers the existing gap, once assured then opt for Gap Insurance. Without a justified reason paying two premiums would not make sense.

4. In case you are buying a used motorcycle instead of a brand new one then buying gap insurance would not make sense at all as most of the companies offering Gap insurance hold no good for used bikes.

5. Last but not the least- what is the price of buying a Gap Insurance? Is it worth the amount you would be paying as a resultant gap in case of complete loss? If yes then Gap Insurance surely is a wise decision for you.

Discussing above points reflects that gap insurance does offers some attractive financial security to motorcycle buyers however one should be well aware of the fineries of existing motorcycle insurance policy to take the maximum advantage of Gap insurance.