What is GAP Insurance?
You have been told you need it, but what is GAP Insurance?
GAP Insurance, also known as Guaranteed Asset Protection Insurance, covers the difference between the value you bought your car for, and the amount that your insurers pay out to you after a write off.
1. You purchase a vehicle
This can be bought in full, on finance or on a lease.
2. Vehicle is written off
A total loss occurs when the vehicle is in an accident or a theft.
3. The insurance pays out
The insurance pays out on the vehicle’s value at time of write off.
4. We pay out the rest
We give you the difference between the value of your car when you purchased it and what the insurer paid you.
Example of GAP Insurance
If you buy a car for £10,000, you might only get back £6,000 from your insurers after a write off a few years later. GAP Insurance covers you for the difference of £4,000 between the insurer’s value and the purchase price.
If you need details on what GAP insurance is, feel free to give us a call on 0161 495 6123 and we can help you through your quotation.
Levels of cover
There are 3 different levels of cover to GAP insurance.
(Guaranteed Asset Protection)
Cover the difference between your insurance pay out and the remaining cost of your finance agreement.
(Return To Invoice)
Cover the difference between your insurance pay out and the price you paid for your vehicle.
(Replacement Vehicle Insurance)
Cover the difference between your insurance pay out and the cost of buying a new vehicle of the same type.
Is GAP Insurance worth it?
As soon as you drive your vehicle off the forecort of a dealership, it depriciates in value.
When your vehicle is written off, the insurance will pay out the value of the vehicle at the time of the claim. This will always be less than what you originally paid when purchasing it.
GAP Insurance will help prevent you from further financial loss by paying the difference between what the insurer pays you at the time of a claim, and hwo much you originally paid for it. This is the case if you paid for your vehciel with cash or finance, or if it is a lease vehicle.
What GAP Insurance do I need?
The type of GAP cover you need depends on how much cover you would like to protect vehicle.
The two levels of cover we offer are:
Level 1 – includes GAP and RTI
Level 2 – includes GAP, RTI and RVI
Both levels include GAP and RTI, which means they will both cover costs owed to your finance company or your original invoice for the vehicle. Level 2 however includes RVI which means that you will recieve enough to replace your vehicle with a like for like model, even if that model of vehicle is no longer availible. Both will cover you for against financial loss but level 2 provides further cover.
Level 1 is availible for all of our polices, level 2 is only availible for our car and van policies.