GAP Insurance
Covering the difference between the price you paid for your vehicle and its current market value. We’ll tailor GAP Insurance to suit you.
What is GAP Insurance?
Guaranteed Asset Protection (GAP) Insurance is designed to mitigate the depreciation of your vehicles current market value and the price you originally paid for it. It’s a known fact that as soon as you purchase a new car and drive away, it will start to lose value. That’s why this type of cover is especially popular with owners of brand-new vehicles, due to the depreciation you can often expect with new vehicles.
Often new cars depreciate at the quickest rate within the first three years. If you had an accident within this time and the vehicle gets written off or stolen, insurers would only pay out the market value. GAP insurance covers this and ensures you are not out of pocket.
GAP insurance is very popular with owners of brand-new cars. Offering protection should your vehicle be written-off or stolen.
How Does GAP Insurance Work?
We can offer varying levels of cover, depending on your requirements. Fully comprehenisve offers the most complete protection. It’s worth bearing in mind that this level of cover can be just as competitively priced as the other levels.
GAP Insurance Policy
The first step is to take out a GAP insurance policy. This needs to be done within the first year of owning your car and, ideally for maximum protection, would be taken out as soon as you purchase the car. We can quote on this as an add-on to your standard policy. GAP policies are normally available for between 1 and 3 years depending on your requirements.
Making a Claim
Claims must be made against your standard car insurance policy in the first instance. You must be approved for the claim before GAP cover can be used. It's important to make sure that the GAP insurance provider is happy with the amount being offered prior to you accepting the claim settlement. If both policies are with us, we can help manage this for you.
Receive Your Payout
Once you have received your car insurance claim settlement, you must make the GAP insurance claim as soon as possible. It is worth noting that if you have finance cover as part of your GAP insurance policy, it's important to discuss the way in which any outstanding loans will be settled, and if they will be automatically paid on your behalf. We can help guide you through this.
What Does a GAP Insurance Policy Cover?
A GAP insurance policy will commence once your car has been written off and you have been given an offer by your car insurance provider. Depending on your policy, GAP insurance will cover the deficit of your car insurance policy pay-out falling short. For example:
- NThe price you paid for the car when you initially purchased the vehicle
- NThe cost to replace your car with one of the same make, model and specification
- NThe cost of any outstanding finance that was used to purchase your vehicle
- NThe overall cost of any remaining payments of your lease agreement
Our Car Insurance Policies
The relationships we have with insurers means that we are rarely limited on what we can cover. We will take time to talk to you and find out exactly what you need. From there, we will go to market and source a policy tailored to your needs.
What Isn’t Covered?
There are some scenarios that are not generally covered by a standard GAP policy. Here are a few examples:
- MDrivers that are not named on the policy
- MDrivers without a valid license
- MRepairable damage
- MBusiness vehicles
- MNon-comprehensive car insurance
Frequently Asked Questions
Where can I find my policy documents?
We will email your policy documents to you once your policy is live/renewed. Should you need us to send them to you again, please give our personal lines team a call on 0333 222 1030.
Can I have GAP insurance on a lease car?
Yes you can. It's not a requirement but it can be very beneficial, especially to ensure that you are not out of pocket with any outstanding costs as well as your vehicle being written off.
Can I buy a GAP insurance policy at any time?
No, unfortunately not. In most instances, GAP insurance must be taken out within the first 12 months of purchasing your vehicle. Some insurers require you to take the policy out in the first 180 days of your new vehicle purchase.