What does GAP Insurance cover?

What does GAP Insurance cover and how can it help to protect you further from financial loss? We explain everything you need to know.

Our policies protect you for up to three levels of cover. All our policies cover you for Guaranteed Asset Protection (GAP) and Return to Invoice (RTI). They can also cover you for Replacement Vehicle Insurance (RVI).

What’s Included

 Car  Van  Motorcycle  Taxi
RVI (optional)
Cover Limit £60,000 £60,000 £25,000 £30,000
Vehicle Age Limit 10 years 10 years 7 years 7 years
Purchase Date Limit from Dealership 6 Months 6 Months 3 Months 3 Months
Purchase Date Limit from Private Seller 1 Month 1 Month 3 Months 3 Months
Maximum Policy Limit 5 Years 5 Years 5 Years 5 Years

Gap Insurance Definitions Explained

GAP: Cover the difference between the remainder of your finance agreement and what your insurers pay out after a write off.

RTI: Cover the difference between the value you bought your car for, and what your insurers pay out after a write off.

RVI: Cover the difference between the value of a replacement vehicle of the same type, and what your insurers pay out after a write off.

Cover Limit: The maximum amount that you can insure the value of your car up to.

Age Limit: This is the maximum age of vehicle that we can cover.

Purchase Date Limit: This is the maximum time after purchasing the vehicle that you can purchase GAP Insurance cover.

Policy Limit: This is the length of time that you can insure your vehicle for. You can only buy your GAP insurance once, so consider how long you want to insure the vehicle for.


Information Applicable To All Policies

  Eligibility For GAP Cover

Gap Insurance Today will sell a policy providing that the following statements are true:

i) You are the registered keeper and owner of the insured vehicle. Also, you are the authorised driver for the insured vehicle in the event if the insured vehicle is leased or hired.
ii) You are purchasing this policy within 6 months of the purchase date of the insured vehicle if from a dealership;
iii) You are the insured person and are named as the policyholder on the motor insurance policy for the insured vehicle;
iv) Your name will be on any finance agreement secured on the insured vehicle;
v) The original amount financed through any finance agreement will be less than or equal to the insured vehicle purchase price;
vi) You are going to notify us of any insured vehicle transfer;
vii) Finally, any replacement insured vehicle will not exceed the invoice price for the original quotation.


The Administrator for your policy will be the following: Acasta Europe Limited which is based at 4 Station Road, Cheadle Hulme, Cheshire, SK8 5AE. To call the telephone number is 0845 040 5975 (local rate) for Claims and 0800 668 1178 for all other queries.

Know Your Rights

The changes to selling GAP Insurance

As part of its reform of general insurance add-ons, in September 2015 the Financial Conduct Authority (FCA) changed their regulations for the £160m Gap insurance market.

Gap insurance is usually sold alongside a car. However the FCA had found that “consumers were buying without having previously thought about the product. They also were missing the chance of shopping around for alternatives and were not always getting the best deal”.

Financial Conduct Authority says that dealerships now must follow new rules. If a salesperson starts the process of selling the product, they shouldn’t complete it for a set time period. This allows customers the breathing space to think about their choice and shop around.

Deferred opt-in period

A dealer cannot conclude the sale of a GAP policy until at least 2 clear days have passed. This is from when the customer was provided with the product information detailed above. For example:

1st Day – Prescribed information provided

2nd Day – Clear day – no customer contact

3rd Day – Clear day – no customer contact

4th Day – Complete sale / contact customer

It also says that salespeople must provide customers with information advising them that they can shop around and that Gap insurance is available elsewhere.

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