Gap Insurance – protecting you
What is GAP insurance?
Have you ever had a vehicle stolen and not recovered, or wondered what you would get paid if this event occurred?
Has your vehicle ever been involved in an accident where the vehicle was declared a total loss (or write off?)
If you have then you will be aware that an insurer will only ever pay you the market value for your car to settle any claim. This can often mean that you are left with a lesser amount with which to replace the vehicle, or if the vehicle has been purchased on finance, with a shortfall outstanding to the finance provider.
This is where GAP insurance can be essential. A GAP insurance policy can offer a payment in addition to the insurer’s settlement figure which may contribute to, or settle the shortfall between, the original value of your car and that offered by the motor insurer.
This can make a huge difference to your finances when you replace the car, or arrange finance for your new vehicle.
There are many types of GAP cover available, which run alongside your motor insurance policy. These policies can range from an annual policy to a 4 or 5 year cover period.
A GAP policy can be arranged for a brand new vehicle, or for vehicles up to 10 years old (subject to certain criteria)
Here is an example of some of the GAP insurance cover we can provide
Combined purchase price protection (return to invoice gap insurance) and finance Gap (finance protection gap insurance).
If you have purchased a new car on finance the policy will provide cover for the difference between the insurers settlement figure and the original net invoice price for the vehicle, or the outstanding balance owing to the finance company (whichever is higher) up to an agreed limit. Cover limits vary from £5000 to £25,000
Finance Gap Insurance
In the event of a total loss claim the Gap policy will pay the shortfall between the insurers settlement figure and the early settlement amount owed to the finance company, up to an agreed limit. Cover limits vary from £5000 to £25,000.
Lease Gap Insurance
In the event of a total loss claim the policy will settle any early termination charge applied by the lease company, up to an agreed limit. Cover limits vary from £5000 to £25,000
Purchase price protection Gap
The policy will cover the difference between the motor insurers settlement and the original net invoice price of the vehicle up to an agreed limit. Cover limits vary from £5000 to £25,000.
Total Loss Top Up
If your vehicle is declared a total loss, the policy will provide an additional payment of 25% of the total loss valuation made by your motor insurers up to a Maximum of £10,000. This policy is most suitable for second hand vehicles up to 10 years old.