More info about GAP
Why have GAP?
Most of us don't think about the consequences of what can happen when your vehicle is declared a write off by your motor insurer following an accident, fire or theft. A write off means that your motor insurance company has taken the decision that the vehicle is uneconomical to repair or can't be found following the theft. When this happens your motor insurer will pay out what they consider to be the current value of your vehicle called "The market value". Because all vehicles depreciate (some a lot quicker than others) this 'market value' could be considerably less than what you paid for your vehicle and could even be less then what you have outstanding to pay on Finance. GAP insurance is designed to protect you against this financial loss.
Click here to see how your vehicle might depreciate.
Please read this if your vehicle is brand new
If your vehicle is brand new and you are the first registered keeper of the vehicle your motor insurance policy might offer a 'new for old' cover during the vehicles first year. This means that if your vehicle is a write off your motor insurer will try and replace your vehicle for a new one rather than settling in money. If you do receive a replacement vehicle this means our policy would not need to pay out. However we will transfer your policy to your new vehicle free of charge so that your cover continues. There are many situations when 'new for old' doesn't apply. The important thing to do if your vehicle is brand new is to check your motor insurance policy first before purchase GAP insurance.
Different types of GAP available
Combined Purchase Price Protection & Finance GAP.
This product is designed for customers purchasing their vehicle from a supplier of motor vehicles either with cash or on finance and would like the GAP insurance to protect them for longer than 12 months. (Vehicles on Contract Hire/Lease are not eligible for this product).
If your vehicle is declared a write off this product will pay the difference between the motor insurers claim settlement and the original price you paid for the vehicle, or the outstanding balance owing to the finance company, if this is higher (up to an agreed maximum payout).
- Covers the shortfall between the motor insurance settlement figure and the purchase price* of your vehicle, or if greater the outstanding amount that you owe to your finance company.
- Reimburses any excess you have had to pay to your motor insurer up to £750 following a write off.
- A hire car will be provided to you for up to 35 days following a write off.
- Covers up to £2,500 of dealer fitted accessories that are shown on your original vehicle invoice.
Purchase Price Protection
This product is designed for customers acquiring their vehicle from a supplier of motor vehicles mainly with their own funds, so with little or no loan. You would like the GAP insurance protection for longer than 12 months. (Vehicles on Contract Hire/Lease are not eligible for this product).
If your vehicle is declared a write off this product will pay the difference between the motor insurers claim settlement and the original price you paid for the vehicle (up to an agreed maximum payout.)
- Covers the shortfall between the motor insurance settlement figure and the purchase price* of your vehicle.
- Reimbursement of any excess deducted by your motor insurer up to £750 following a write off.
- A hire car will be provided to you for up to 35 days following a write off.
- Covers up to £2,500 of dealer fitted accessories that are shown on your original vehicle invoice.
*certain items are excluded from the purchase price of your vehicle such as road fund licence, warranty charges, paint protection applications. Please see the product information document and terms & conditions for full details. All available when you get quote.
Lease GAP
This product is designed for customers or companies who are acquiring a vehicle on a Contract Hire, Personal Contract Hire, Business Contract Hire or a Lease Agreement.
If your vehicle is declared a write off, Lease GAP will pay the shortfall between the motor insurers claim settlement and the Early Termination charge applied by the vehicle lease company (up to an agreed maximum payout.)
- Covers the shortfall between the motor insurance settlement figure and the early termination charge applied by the lease company.
- Reimbursement of your original lease deposit (up to a maximum amount).
- Reimbursement of any excess deducted by your motor insurer up to £750 following a write off.
- A hire car will be provided to you for up to 35 days following a write off.
- You choose the length of cover suitable for your needs.
Total Loss Top-Up
This type of GAP product is designed for customers who:
- Have owned their vehicle for some time and didn't buy GAP when the car was purchased. (the other GAP products have to be purchased within a certain time of buying a vehicle).
- May have purchased their vehicle privately i.e. not from a car dealer.
- May want an annual policy that they can review and renew each year up until their car is 10 years old.
(Vehicles on Contract Hire/Lease are not eligible for this product).
If your vehicle is declared a write off this product will increase the motor insurers claim settlement by 25%, up to maximum of £10,000. This GAP product can be renewed every year until your car reaches 10 years old. It also allows you to transfer the cover if you change your car.
Why buy GAP from us rather than a dealer?
GAP Insurance is often sold by motor dealers at the point of purchasing a vehicle from them. However it is worth shopping around before you commit to buying the dealers GAP product. As an online provider we don't have the same overheads that a motor dealer has. We can therefore pass this saving onto you and make your premiums even cheaper. Not only do we try and provide you with a competitive premium, we also look to design products that provide the protection you need and for the period of cover you require. For your protection and comfort our policies are underwritten by UK based insurers, all of whom are authorised and regulated by the Financial Conduct Authority.
The following will provide you with some more details on how the different GAP products work.
The type of GAP insurance product you purchase really depends on how you purchased your vehicle (finance, cash, contract hire) and when you purchased your vehicle. Certain GAP products have to be purchased within a specified time after you have purchased your vehicle.