Invoice GAP Insurance

Invoice GAP Insurance, will in the event of your vehicle being written off, pay the difference between your motor insurance payout and either; the amount that you originally paid for the vehicle OR, the amount outstanding on finance at the time of claim - whichever is the greater!

Usual Invoice GAP Insurance features:

  • Cash payouts (assuming there's no finance to settle, or that the original invoice price is greater than the Finance Agreement Settlement Figure)
  • You are free to choose your own replacement vehicle and the supplier of it.
  • Covers up to £250 of your motor insurance excess
  • Policy start dates can be deferred by up to 12 months after the date the vehicle was first registered.
  • If your motor insurer replaces your vehicle new-for-old, the remaining term of the policy will be transferred to the replacement vehicle completely free of charge.

Invoice GAP Insurance is usually available to cover a New or Used Car/Light Van (up to 6 years old) with a value of up to £100,000.00 that has been purchased from a UK Motor Dealer within the last 105 days.

Click for more information about our Invoice (RTI) policy.
 

Replacement GAP Insurance:

Replacement GAP Insurance, also covers the difference between your Motor Insurance payout and the cost of replacing the vehicle New-For-Old at the time of claim - that's even if the replacement vehicle costs more than the price you originally purchased it for.

Usual Replacement GAP Insurance features:

  • Cash payouts (assuming there's no finance to settle).
  • You are free to choose your own replacement vehicle and the supplier of it.
  • Covers up to £250 of your motor insurance excess
  • Policy start dates can be deferred by up to 12 months after the date the vehicle was first registered.
  • If your motor insurer replaces your vehicle new-for-old, the remaining term of the policy will be transferred to the replacement vehicle completely free of charge.

Replacement GAP is usually available to cover a brand new vehicle, (or a pre-registered vehicle having travelled less than 500 miles), which is less than 105 days old and has a value less than £100,000.00 that has been purchased from a UK Motor Dealer within the last 105 days.

Click for more information about our Replacement (VRI) policy.

What is GAP Insurance?

GAP Insurance is a valuable addition to your car insurance policy, due to the reducing nature of how a car insurance policy would operate in the event of your vehicle being written off.

If your car was written off, your car insurance policy will only pay you the amount that they believe your car was, worth at the time it is/was written off.

Consider that by the time the vehicle was written off, you may have owned the car for a few days, weeks, months or years, but due to the simple fact that the vehicle is older than it was when you bought it, the vehicle value will have been subject to depreciation and with very few exceptions, the vehicle will now be worth less than you originally bought it for.

The difference between what you bought it for and what it is worth now (at the time of write off) is also known as the "gap" and a GAP Insurance policy insures that very "gap".

There are however different "gaps" depending on how you've bought the car and as you might expect, different types of GAP Insurance applicable to those different "gaps".