How Does a GAP insurance Claim Limit Work?

All GAP insurance policies have a “Claim Limit”. This is the most that the GAP insurance policy will pay towards:

  • the difference between your Motor Insurance payout and the original purchase price of the vehicle (Invoice GAP insurance), or
  • the difference between your Motor Insurance payout and the cost of replacing the vehicle with a brand new equivalent at the time of loss (Replacement GAP insurance), or
  • the difference between your Motor Insurance payout and the amount required to settle the outstanding balance of your contract hire agreement (Contract Hire GAP insurance).
  • 25% of the amount paid out by your Motor Insurer - max' £10,000 (Top-Up GAP insurance).

The Claim Limit for our Invoice, Replacement and Contract Hire GAP insurance policies is automatically set at the original invoice price of the vehicle (or the P11D value for Contract Hire GAP insurance policies). For vehicles with an invoice price or P11D value of more than £75k, the claim limit will default to £75k.

Top-Up GAP insurance policies by default, have a claim limit of £10,000.