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GAP Insurance – What Is It?
GAP Insurance is a valuable addition to your car insurance policy, due to the reducing nature of how a car insurance policy would operate in the event of your vehicle being written off.
If your car was written off, your car insurance policy will only pay you the amount that they believe your car was, worth at the time it is/was written off.
Consider that by the time the vehicle was written off, you may have owned the car for a few days, weeks, months or years, but due to the simple fact that the vehicle is older than it was when you bought it, the vehicle value will have been subject to depreciation and with very few exceptions, the vehicle will now be worth less than you originally bought it for.
The difference between what you bought it for and what it is worth now (at the time of write off) is also known as the “gap” and a GAP Insurance policy insures that very “gap”.
There are however different “gaps” depending on how you’ve bought the car and as you might expect, different types of GAP Insurance applicable to those different “gaps”.
GAP Insurance (Return to Invoice)
Return to Invoice GAP Insurance, insurers will in the event of your vehicle being written off, pay the difference between your motor insurance payout and either; the amount that you originally paid for the vehicle OR, the amount outstanding on finance at the time of claim – whichever is the greater!
Replacement GAP Insurance
Replacement GAP Insurance, this is where the insurer covers the difference between your Motor Insurance payout and the cost of replacing the vehicle New-For-Old at the time of claim – that’s even if the replacement vehicle costs more than the price you originally purchased it for.
Simply call 01202 710008 to speak to one of our experienced staff members about getting a quote.