What is GAP Insurance?

Are you looking to buy a new or nearly new vehicle?

Everyone knows when you buy a new vehicle you lose money from the second you leave the forecourt.

Unfortunately the amount owed under any finance agreement does not fall quite as fast.

So, should you have an accident and your vehicle be written off, most insurers will only pay-out the value of the vehicle at the time of the accident, known as the current ‘market value’.

This will be less than you paid for the vehicle and, invariably, less than the outstanding balance on your finance.

Standard GAP Insurance covers this shortfall.

For example:

Your Vehicle cost – £20,000

Deposit – £1,000

18 months later…..

Insurance settlement after write off – £12,000

However outstanding amount left to pay on your finance – £14,500

Shortfall left to pay – £2,500

Standard GAP INSURANCE will pay this £2,500

However, as well as having to pay for the shortfall, you will also need to be looking for a new car!

Return to Invoice GAP Insurance pays the difference between the purchase price and the insurer’s settlement, or if greater the amount required to settle any finance.

For example:

Your Vehicle cost – £23,000

24 months later…..

Insurance settlement after write off – £16,000

Return to Invoice GAP INSURANCE will pay the difference of £7,000 to return the full value of your vehicle.

For more claims examples, please visit our blog article by clicking here.

Still confused?

Still not sure what GAP Insurance is? Perhaps this video might help…

Am I eligible?

For more information and to see if you are eligible for GAP Insurance, please contact:

Gary B Baxter Dip CII

Corporate Account Manager
Direct Dial: 01253 598957
Mobile: 07904 546274
Email: gary@rowlands-hames.co.uk
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Dont get caught out, call us today on 01253 594211!

Our premiums are often much more competitive than those offered by garages.