What is Top-Up GAP insurance?

Top-Up GAP insurance is an annually renewable GAP insurance policy which, in the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft, or flood, will aim to pay you up to an additional 25% of what your motor insurer paid out.

Largest claim paid

£4,455

Average claim paid

£2,546

How does Top-Up GAP insurance work?

In the event of your vehicle being declared a Total Loss (aka "written off") as a result of an accident, fire, theft or flood, your comprehensive Motor Insurance policy would normally only pay out the market value of the vehicle at the time of loss. Top-Up GAP insurance will aim to pay you up to an additional 25% of what your motor insurance policy pays out.

Examples:

  • Your car is written off and your motor insurance policy pays out £20,000 less a £250 excess = £19,750. Top-Up GAP insurance pays you £5,187.50 (25% of £19,750 = £4,937.50 + £250 excess cover = £5,187.50)
  • Your car is written off and your motor insurance policy pays out £40,000 less a £500 excess = £39,500. Top-Up GAP insurance pays you £10,000 (25% of £39,500 = £9,875.00 + £250 excess cover = £10,125. Payout limited to max' £10,000)

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

How Top-Up GAP insurance works

Policy documents

Do I need Top-Up 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.

Top-Up GAP insurance would aim to top-up your motor insurance pay-out by up to 25% and includes cover for up to £250 of any excess deducted by your motor insurer. If you have finance outstanding this additional money could come in useful by either contributing more towards clearing the finance than you would otherwise have been able to pay without it, or, by leaving you with more funds to go towards the cost of your next vehicle.

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 this 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 Top-Up GAP insurance.

Am I Eligible for Top-Up GAP insurance?

You can buy Top-Up 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.
  • 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.
  • Is worth no more than £80,000 at the start date of the policy.
  • 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), 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.

You can NOT buy Top-Up 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 the subject of a Contract/Lease Hire agreement.
  • Is more than eight (8) years old at the start date of this policy.
  • 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.
  • Is worth more than £80,000 at the start date of the policy.
  • 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 a van, car derived van, motorcycle, motorhome or campervan.
  • Is a specifically excluded vehicle.

Key features of Top-Up GAP insurance

  • Pays you up to an additional 25% of your motor insurance payout in the event that your car is declared a Total Loss
  • Available for a car up to 8 years old, regardless as to how long ago you purchased it.
  • 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 worth up to £80,000.
  • Underwritten by DTW 1991 Underwriting Limited on behalf of Syndicate DTW1991 at Lloyd's - an A-Rated, UK-based insurer.
  • Pays up to £250 towards the excess on your Comprehensive Motor Insurance policy.
  • FREE transfer of any unused premium towards the cost of a new policy on a replacement vehicle.
  • Annually renewable policy.
  • 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.

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 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.
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?
Yes - we will update your policy with your new vehicle details. 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
Maximum age of vehicle that can be covered?
8 Years old
Maximum vehicle value?
£80,000
Maximum Claim Limit available?
£10,000
Maximum duration of cover available?
1 Year
Renewable

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


£15.00
Waived if a new policy is purchased.

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

Any time
(As long as the vehicle is less than 8 years old at the start date or renewal date of the policy)

Allows for vehicles to be modified?

Recent Top-Up GAP insurance claims

Below are a selection of our most recent Top-Up GAP insurance claims:

Toyota Auris

Toyota Auris
GAP Claim
Motor insurance Pay-out
Top-Up GAP Pay-out
July 2020
£9,390
£2,448
Policy Cost:
The policy cost £96.60 (3.95% of the amount the policy paid out.)

Ford Focus

Ford Focus
GAP Claim
Motor insurance Pay-out
Top-Up GAP Pay-out
June 2020
£4,900
£1,225
Policy Cost:
The policy cost £68.04 (5.55% of the amount the policy paid out.)

Honda CR-V

Honda CR-V
GAP Claim
Motor insurance Pay-out
Top-Up GAP Pay-out
November 2019
£7,230
£2,058
Policy Cost:
The policy cost £68.04 (3.31% of the amount the policy paid out.)

Audi A6

Audi A6
GAP Claim
Motor insurance Pay-out
Top-Up GAP Pay-out
October 2019
£17,500
£4,455
Policy Cost:
The policy cost £68.04 (1.53% of the amount the policy paid out.)