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.

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.

Different types of GAP available

Combined Purchase Price Protection & Finance GAP.

This product is designed for customers acquiring their vehicle from a supplier of motor vehicles either with cash or on Finance (Contract Hire/Lease Excluded).

In the event your vehicle is declared a write off this product can pay the difference between the motor insurers total loss settlement and the original net invoice 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.)

If the finance on your vehicle is longer than three years the combined cover in years four and five reverts to cover the difference between the motor insurers total loss settlement and the balance outstanding to the finance company if this is higher (up to an agreed maximum payout).

One of the advantages of this product for customers on Finance is that if the vehicle is written off during the early stages of your ownership you can find that the amount owing to the finance company is greater than what the vehicle actually costs. This could happen if you have put down zero or very little deposit on your vehicle. Purchase Price Protection in isolation may not cover the outstanding balance owing to the Finance company.

Purchase Price Protection

This product is designed for customers acquiring their vehicle from a supplier of motor vehicles either with cash or on Finance (Contract Hire/Lease Excluded).

In the event your vehicle is declared a write off this product can pay the difference between the motor insurers total loss settlement and the original net invoice price you paid for the vehicle (up to an agreed maximum payout.)

Lease GAP

This product is designed for individual customers or companies who are acquiring a vehicle on a Contract Hire, Personal Contract Hire, Business Contract Hire or a Lease Agreement.

In the event the vehicle is declared a write off, Lease GAP will pay the difference between the motor insurers total loss settlement and the Early Termination charge applied by the vehicle lease company (up to an agreed maximum payout.)

The settlement is made direct to the lease company.

Total Loss Top-Up

This type of GAP product is designed for customers who:

1. Have owned their car 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).
2. May have purchased their vehicle privately i.e. not from a car dealer.
3. May want a simple annual policy that they can review and renew each year up until their car is 10 years old.

In the event your vehicle is declared a write-off this product will increase the motor insurers total loss settlement by 25%, up to maximum of £10,000. This is the only GAP product which can be renewed every year until your car reaches 10 years old. There are no restrictions on when and how you acquired your car. It also allows you to transfer the cover if you change your car.