GAP Claim examples
Combined Purchase Price Protection & Finance GAP
Example 1: customer purchased a Ford Puma on 20th February 2022. This is what happened...
| Customer purchased the vehicle for: | £24,419.00 |
| Date vehicle was written off: | 1st November 2024 (985 days after purchasing the vehicle) |
| Cause: | Another vehicle crashed into the side of my car as I went through a set of traffic lights. My traffic light was on green. Motor insurer has written off the vehicle. |
| Motor insurer paid the customer: | £16,500 |
| GAP Insurance paid: | £7,919 |
Without this GAP Policy this customer would have £16,500 in their bank account from their motor insurer. But instead, they received an additional £7,919 from their GAP policy which covered the depreciation of their vehicle and enabled them to purchase a newer vehicle of their choice.
Example 2: customer purchased a Fiat 500 Electric on 28th March 2023. This is what happened...
| Customer purchased the vehicle for: | £24,642 |
| Date vehicle was written off: | 22nd July 2023 (116 days after purchasing the vehicle) |
| Cause: | When entering a car park the front of my vehicle caught a post, the motor insurer has declared my vehicle a total loss as the damage is too extensive to repair. |
| Motor insurer paid the customer: | £17,583 |
| Outstanding balance owing to the finance company: | £20,800 |
| GAP Insurance paid: | £7,059 Plus GAP paid an additional £250 towards the customers motor excess that the motor insurer deducted from their settlement. |
Without this payment from the GAP Policy this customer would have £17,582 in their bank account from their motor insurer. But will have still owed £3,217 to the finance company as the motor insurer settlement was not enough to clear the outstanding finance. With their GAP Insurance payment the customer received an additional £7,059 which allowed them to pay off the finance and still have money to put towards their next vehicle.
Lease GAP
Example 1: customer had a Peugeot 2008 GT on Contract Hire and paid an initial deposit of £477.
The contract hire started on 24th September 2021. This is what happened...
| Date vehicle was written off: | 1st April 2024 (920 days after purchasing the vehicle) |
| Cause: | Head on collision with another vehicle. Motor insurer has written off the vehicle. |
| Motor insurer paid: | £13,902 |
| Outstanding balance owing to the Contract Hire Company: | £17,036 |
| GAP Insurance paid: | £3,711 (this included £477 to cover the customers initial deposit and £100 to cover the customers motor excess that the motor insurer deducted from their settlement. |
Without this payment from the GAP Policy this customer would be in debt to the Contract Hire company as the outstanding amount due to them was higher than what the motor insurer paid. The customer would have also lost their initial deposit of £477 and would have to find additional funds for another initial deposit on the next vehicle. They would also be £100 out of pocket due to the excess they had to pay to their motor insurer. GAP insurance covered the lease shortfall, initial deposit and motor insurers excess.
Example 2: customer had a Mercedes GLE on Contract Hire and paid an initial deposit of £2,360. The contract hire started on 15th February 2022. This is what happened...
| Date vehicle was written off: | 28th August 2023 (559 days after purchasing the vehicle) |
| Cause: | Another vehicle pulled out and hit my vehicle. Motor insurer has written off the vehicle. Write off/Insurance settlement |
| Motor insurer paid: | £41,673 |
| Outstanding balance owing to the Contract Hire Company: | £53,775 |
| GAP Insurance paid: | £14,462 (this included £2,360 to cover the customers initial deposit). |
Without this payment from the GAP Policy this customer would be in debt to the Contract Hire company as the outstanding amount due to them was higher than what the motor insurer paid. The customer would have also lost their initial deposit of £2,360 and would have to find additional funds for another initial deposit on the next vehicle. GAP insurance covered the lease shortfall and the initial deposit.
Total Loss Top Up
Example 1: customer purchased a BMW X3 on 18th September 2017 and had owned the vehicle for 7 years. This is what happened...
| Date vehicle was written off: | 30th November 2024 |
| Cause: | Vehicle got stranded in Flood water. Motor insurer has written off the vehicle. |
| Motor insurer paid the customer: | £17,500 |
| GAP Insurance paid: | £4,375.00 (25% increase on £17,500). GAP paid an additional £250 towards the customers motor excess that the motor insurer deducted from their settlement. |
Without this payment from the GAP Policy this customer would have £17,500 in their bank account from their motor insurer but instead they received an additional £4,625.00 to enable them to purchase a newer vehicle of their choice and have their motor excess reimbursed.
Example 2: customer purchased an Audi A3 on 11th September 2017 and had owned the vehicle for 6 years. This is what happened...
| Date vehicle was written off: | 18th May 2023 |
| Cause: | I had to swerve to avoid hitting an object in the road and hit a barrier. Motor insurer has written off the vehicle. |
| Motor insurer paid the customer: | £11,300 |
| GAP Insurance paid: | £2,825 (25% increase on £11,300). GAP paid an additional £250 towards the customers motor excess that the motor insurer deducted from their settlement. |
Without this payment from the GAP Policy this customer would have £11,300 in their bank account from their motor insurer but instead they received an additional £3,075 to enable them to purchase a newer vehicle of their choice and have their motor excess reimbursed.