What is Invoice GAP insurance?

If your car is written off, the combined nature of this type of cover aims to pay the difference between your motor insurance payout and the higher of either the finance agreement settlement figure at the time of claim (if applicable) or the original invoice price that you paid for your vehicle when you first bought it. It will also reimburse you up to £250 of excess deducted by your motor insurer and should you need to, you can build in cover for up to £3,000 of negative equity brought forward from a previous vehicle.

Our customers have saved

On average
£259

At most
£1,663

Largest claim paid

£49,475

Average claim paid

£5,219

How does Invoice GAP insurance work?

Invoice GAP insurance is the most commonly purchased type of GAP insurance in the UK today (primarily because it's usually the highest level of cover offered by Motor Dealers). It's a combination of both Finance GAP and Invoice GAP insurance, thereby providing the best of both cover types.

In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft or flood, Invoice GAP insurance aims to pay the difference between your Motor Insurance pay-out and THE GREATER OF either:

  • The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
  • The ORIGINAL INVOICE PRICE that you paid for your vehicle when you first bought it.

For most people who go on to make a claim, having their motor insurance pay-out topped up to the original invoice price of the vehicle by way of an Invoice GAP insurance pay-out, would leave them in the position of being able to both clear any outstanding finance and have money left over to put towards the cost of their next car.

In order to determine whether this type of cover is suitable for your needs, either call us on 01484 490095 or contact us here.

Invoice GAP claim example

Policy documents

Do I need Invoice GAP insurance?

GAP insurance is an entirely optional form of insurance and some people will have a greater need for it than others.

Without GAP insurance in force, if your car is written off, you'd only have your motor insurance pay-out coming your way. If you have finance outstanding on your written-off vehicle, your motor insurance pay-out may not be sufficient to clear the outstanding balance, in which case, you'd have to use your own funds to both clear the remaining finance on the written off vehicle and fund a replacement vehicle.

Of course if you had no finance outstanding at the time of write-off, then in theory you could use your motor insurance pay-out to buy a vehicle of a similar age, condition and mileage as your vehicle at the time it was written off but, if you wanted anything newer or better etc, you'd have to use some of your own funds to cover the difference.

Invoice GAP insurance would aim to top-up your motor insurance payout to the original invoice price that you paid for your now written-off vehicle when you first bought it. If you have finance outstanding you would use this original invoice amount to clear the outstanding finance and any remaining funds would be yours to use against the cost of your next car. Of course, if you had no finance outstanding then you'd have this original invoice amount at your disposal to buy another car with.

In short... if you can comfortably afford to stand the combined cost of clearing any finance outstanding (where applicable) and replacing your vehicle in the event it's written off, you probably don't need GAP insurance. However if you could not comfortably afford to replace your vehicle or, you'd prefer that your own savings were not 'hit' by the cost of replacing your vehicle if it was written off, therein lies the need for Invoice GAP insurance.

Am I eligible for Invoice GAP insurance?

You can buy Invoice GAP insurance to cover a New or Used car that:

  • Is covered by a comprehensive motor insurance policy.
  • You are the owner or registered keeper of.
  • Is less than eight (8) years old at the start date of this policy.
  • You have not yet taken delivery of or, you took ownership/delivery of within the last 3 months.
  • You have NOT changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
  • Has not previously been declared a Total Loss and is not already the subject of a previous incident or existing motor insurance claim which could yet result in it being declared a Total Loss.
  • Is registered in the UK.
  • Was bought for no more than £200,000.
  • Is not a commercial vehicle.
  • Is not being used for rallying, racing, any competitive events or for emergency use or hire (including private hire, taxis and chauffer) or for driving school tuition.
  • Is not already covered by a GAP insurance policy.
  • Was bought cash outright, personal loan (secured or not), or financed by way of a HP, PCP or Conditional Finance Agreement.
  • Is not a specifically excluded vehicle.
  • Is not a van, car derived van, motorcycle, motorhome or campervan.

So long as you:

  • Are a permanent resident in the UK or a UK registered company.
  • Bought the vehicle from a VAT registered motor dealer.

You can NOT buy Invoice GAP insurance for a vehicle that:

  • Is not covered by a comprehensive motor insurance policy.
  • You are not the owner or registered keeper of.
  • Is more than eight (8) years old at the start date of this policy.
  • You took ownership/delivery of more than 3 months ago.
  • You have changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
  • Has previously been declared a Total Loss or, is already the subject of a previous incident or existing motor insurance claim which could yet result in it being declared a Total Loss.
  • Is not registered in the UK.
  • Was bought for more than £200,000.
  • Is a commercial vehicle.
  • Is used for rallying, racing, any competitive events or for emergency use or hire (including private hire, taxis and chauffer) or for driving school tuition.
  • Is already covered by a GAP insurance policy.
  • Is the subject of a Contract/Lease Hire Agreement.
  • Is a van, car derived van, motorcycle, motorhome or campervan.
  • Is a specifically excluded vehicle.

Key features of Invoice GAP insurance

  • A combination of Finance and Invoice GAP Insurance - covering up to the greater of either the outstanding finance at the time of claim or the original invoice price.
  • Available for Cars up to 8 years old, purchased within the last 3 months from an authorised dealer or finance house.
  • NO Market Value clauses.
  • Ability to cancel the policy at any time and receive a daily pro-rata refund of unused premium (a cancellation fee may apply).
  • CASH payout to you rather than to a nominated dealer, leaving you free to choose the provider of your replacement vehicle.
  • Available for Cars bought for up to £200,000
  • OPTION to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.
  • Underwritten by DTW 1991 Underwriting Limited on behalf of Syndicate DTW1991 at Lloyd's.
  • Pays up to £250 towards the excess on your Comprehensive Motor Insurance policy.
  • FREE transfer of any unused premium on to a new policy on a replacement vehicle
  • NO right to revalue the purchase price of your vehicle at the time you bought it.
  • Policy durations of up to 4 years available.
  • Claim Limits of up to £75,000 available.
  • FREE policy amendments.
Feature
Details

A-Rated Insurer?

NO Pre-Approval clause with penalty?
Some policies from some GAP insurance providers strictly enforce that you must seek the claim administrator's approval before accepting an offer from your motor insurer, with you forfeiting some or all of your GAP insurance claim in the event that you don't.

Ability to cover Negative Equity brought forward from a previous vehicle?


Max £2,000
Subject to an additional fee being paid.

Initial Cooling Off Period?
Cancel within this period and receive a full refund if no claim has been made

30 Days

Pro-Rata rebate of unused premium if you cancel outsde of the initial Cooling Off Period?
If you sell your vehicle and cancel the policy early with no claim having been made, do you get some of your money back?


Daily Calculation

Pays out in cash to the policyholder?
Some Invoice GAP insurance policies from some providers will contractually oblige you to allow them to source your next vehicle for you. Others may insist that you deal with a motor dealer that they nominate to source your next car. Thereby denying you the flexibility to choose which car you get next, from which dealer or even whether you wish to use the funds towards a new car at all.

After all parties with an interest in the vehicle have been paid (e.g. a finance company), any/all excess funds are paid directly to the policyholder leaving them free to use those funds against the cost of sourcing any vehicle from any dealership of their choice.
Cover for dealer fitted accessories?

Up to £1,500 worth
Transferrable?
If you sell your vehicle and have not claimed on your GAP insurance policy, can the unused portion be transferred forward on a new vehicle?
We will cancel your policy and allow you to transfer forward, the financial value of the remaining period of your cover, against the cost of a new policy on a new vehicle. No cancellation, transfer or admin fees will apply.
Will pay towards your Motor Insurance excess in the event of a successful Total Loss claim?

£250
NO Market Value clauses?
A Market Value clause permits the claim administrator to reduce the amount of your claim based either on their belief that you paid too much for it when you originally bought your vehicle or, if your motor insurer pays out less than they think your car is worth at the time of claim - potentially both. Where possible you should avoid any GAP insurance policy that has one or more market value clauses permitting such a reduction in the amount of claim.

None
Maximum age of vehicle that can be covered?
8 Years old
Maximum vehicle value?
£200,000
Maximum Claim Limit available?
(Subject to the vehicle value)
£75,000
Maximum duration of cover available?
4 Years

Is there a cancellation Fee if cancelled outside of the initial Cooling Off Period?


£30.00
Waived if a new policy is purchased.

How long after taking delivery of the vehicle, do have to buy GAP insurance?

3 Months
Available for both New and Used vehicles?

Allows for vehicles to be modified?

Ability to defer the start date of the policy by up to a year from when the vehicle was first registered?

Recent Invoice GAP insurance claims

Below are a selection of our most recent Invoice GAP insurance claims:

Nissan Juke

Nissan Juke
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
March 2020
£11,000
September 2020
£950
Length of ownership:
6 Months
Rate Of Depreciation:
An average of £158.33 per month
Total Depreciation:
8.64% of its original Invoice Price during the 6 months it was owned.
Policy Cost:
The policy cost £175.12 (18.43% of the amount the policy paid out.)

Mercedes-Benz GLC-Class

Mercedes-Benz GLC-Class
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
December 2019
£31,999
September 2020
£250
Length of ownership:
9 Months
Rate Of Depreciation:
An average of £27.78 per month
Total Depreciation:
0.78% of its original Invoice Price during the 9 months it was owned.
Policy Cost:
The policy cost £234.63 (93.85% of the amount the policy paid out.)

BMW 5 Series

BMW 5 Series
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
February 2020
£31,000
September 2020
£3,960
Length of ownership:
7 Months
Rate Of Depreciation:
An average of £565.71 per month
Total Depreciation:
12.77% of its original Invoice Price during the 7 months it was owned.
Policy Cost:
The policy cost £211.17 (5.33% of the amount the policy paid out.)

Nissan Qashqai

Nissan Qashqai
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
April 2019
£17,600
August 2020
£3,013
Length of ownership:
16 Months
Rate Of Depreciation:
An average of £188.31 per month
Total Depreciation:
17.12% of its original Invoice Price during the 16 months it was owned.
Policy Cost:
The policy cost £191.61 (6.36% of the amount the policy paid out.)

Mercedes-Benz S-Class

Mercedes-Benz S-Class
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
June 2019
£90,000
July 2020
£13,000
Length of ownership:
13 Months
Rate Of Depreciation:
An average of £1,000.00 per month
Total Depreciation:
14.44% of its original Invoice Price during the 13 months it was owned.
Policy Cost:
The policy cost £330.00 (2.54% of the amount the policy paid out.)

BMW 3 Series

BMW 3 Series
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
December 2019
£15,990
June 2020
£250
Length of ownership:
6 Months
Rate Of Depreciation:
An average of £41.67 per month
Total Depreciation:
1.56% of its original Invoice Price during the 6 months it was owned.
Policy Cost:
The policy cost £146.78 (58.71% of the amount the policy paid out.)

Audi A4

Audi A4
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
April 2020
£11,000
June 2020
£900
Length of ownership:
2 Months
Rate Of Depreciation:
An average of £450.00 per month
Total Depreciation:
8.18% of its original Invoice Price during the 2 months it was owned.
Policy Cost:
The policy cost £150.00 (16.67% of the amount the policy paid out.)

Alfa Romeo Giulia

Alfa Romeo Giulia
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
June 2018
£39,259
June 2020
£15,774
Length of ownership:
24 Months
Rate Of Depreciation:
An average of £657.23 per month
Total Depreciation:
40.18% of its original Invoice Price during the 24 months it was owned.
Policy Cost:
The policy cost £182.51 (1.16% of the amount the policy paid out.)

BMW X5

BMW X5
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
March 2017
£19,385
April 2020
£6,295
Length of ownership:
37 Months
Rate Of Depreciation:
An average of £170.14 per month
Total Depreciation:
32.47% of its original Invoice Price during the 37 months it was owned.
Policy Cost:
The policy cost £108.46 (1.72% of the amount the policy paid out.)

Land Rover Range Rover Sport

Land Rover Range Rover Sport
Vehicle Purchased
Invoice Price
GAP Claim
Invoice GAP Pay-out
September 2019
£67,157
April 2020
£11,246
Length of ownership:
7 Months
Rate Of Depreciation:
An average of £1,606.57 per month
Total Depreciation:
16.75% of its original Invoice Price during the 7 months it was owned.
Policy Cost:
The policy cost £392.09 (3.49% of the amount the policy paid out.)