What is GAP Insurance?
GAP is an insurance product designed to protect you from a financial shortfall if your vehicle is written off by your motor insurer. It provides important financial protection and is completely optional. When a motor insurer decides that your vehicle is a write off (due to an accident, fire or theft) they will pay you what they consider to be the current value of your vehicle, known as the ‘market value’. This amount could be less than the finance outstanding on your written-off vehicle, meaning you’d have to use your own savings to clear the remaining finance and fund a replacement vehicle.
You may not have finance outstanding at the time of the write-off, so you could use your motor insurer's settlement to buy a vehicle of a similar age, condition and mileage as your vehicle that has been written off. However if you wanted anything newer or better, you'd have to use some of your own funds to cover the difference. GAP insurance can help you financially when the worst has happened to your vehicle.
Click here for more information about the different types of GAP available
Click here for some details on real GAP Insurance claims.
Do I Need GAP Insurance?
If your vehicle were to be written off you should think about whether you have sufficient funds to comfortably pay the combined cost of clearing any finance outstanding (where applicable), replacing your vehicle and paying any excess under your motor insurance policy. If you do, GAP insurance may not be so important for you. However if you could not comfortably afford to replace your vehicle or, you'd prefer that your own savings were not 'hit' substantially by the cost of replacing your vehicle if it was written off, GAP insurance may be an important protection for you.
You might also want to think about how much your vehicle could depreciate (drop in value) over the period of ownership, the bigger the depreciation the more important GAP insurance might be for you. Some vehicles drop in value much quicker than others but on average new cars can lose 20% to 30% of their value in the first year, adding up to 50% or more over 3 years. Other factors that can affect your vehicle depreciation include:
The amount you use your vehicle. Vehicles with higher mileage or greater wear and tear will attract a lower value.
What Other Benefits Does GAP Insurance Provide?
My dealer offered me a policy which provides a similar cover as GAP Insurance yet the cost of their policy was more expensive, why is this?
Motor dealers may often include commissions and overhead costs which are incorporated into the premium charged to you. As we offer our coverage online we are able to reduce our overheads and pass these savings onto you.
I have purchased my vehicle in a private sale or at an Auction, can I still buy GAP?
Yes you can. Please follow instructions on the quote wizard.
I purchased my vehicle more than 3 months ago can I still buy GAP?
Do I have to buy GAP Insurance from the dealership I bought my car from?
No. GAP is an optional purchase and can be purchased from many distributers.
What is the maximum claim amount payable under GAP Insurance?
This is the maximum amount your GAP policy will pay you in the event of a claim. When you obtain a quotation our website will tell you the maximum claim limit available. On some quotations you may get an option to choose which claim limit you would like to purchase. Remember, following a total loss you will receive a settlement from your motor insurer and GAP Insurance will cover the shortfall.
Is GAP Insurance available for both new and used cars?
Yes, but there are certain vehicle age restrictions for different GAP policies.
Is GAP Insurance transferable if I decide to sell my car?
If your GAP Insurance is a Purchase Price Protection or Lease policy the cover will end immediately when you sell or transfer ownership of your car. If you have Total Loss Top Up GAP we will allow for a transfer of vehicle provided you advise us first (this could affect your premium).
Who are the Insurers of GAP Insurance?
Our GAP Insurance policies are underwritten by UK 'A' rated insurers all of whom are covered by the Financial Ombudsman Scheme and the Financial Services Compensation Scheme. When you receive a quote the name of the insurer will be displayed.
What is a 'Total Loss'?
A 'Total Loss' (also referred to as a write-off) is where your motor insurer decides that the damage to your vehicle is so great that it is not worth repairing your vehicle or has not been recovered following a theft. As a result they make you an offer for the value of your vehicle.
My vehicle is on a lease or contract hire agreement why can't I choose Purchase Price Protection?
Under a lease or contract hire agreement you are not the owner or registered keeper of the vehicle. Therefore we cannot pay back to an invoice price of a vehicle that you do not own.
