GAP Insurance

What is GAP Insurance?

Guaranteed Asset Protection Insurance known as GAP insurance is a type of policy that you can take when you buy a new car.

In the event your car is stolen or written off, it covers you for the difference between the amount your car insurer will pay out and either:

• the purchase price of your vehicle (up to an agreed benefit level)
• or the Early Settlement Amount you owe to the Finance Company (up to an agreed benefit level)

We have heard from customers that our prices are a lot cheaper than GAP policies offered by garages. If you are considering taking out GAP Insurance when you buy a new car speak to us first – before you agree to the garage’s cover.

There are various levels of cover depending on the value of the vehicle purchased. Cover is available over 1, 2 or 3 years.

For a quotation to suit you please contact us on 01304 213613 we will be only too pleased to help.

Don’t take out GAP insurance without talking to us first.

Type of GAP Insurance and Cover

Purchase Price Protection is an optional insurance policy.

If your vehicle is declared a total loss, a GAP insurance policy can pay the difference between the motor insurance settlement and the purchase price of your vehicle up to an agreed benefit level.

There is a choice of cover periods available for GAP Insurance – 12, 24 or 36 months cover.

This is a single premium insurance and the premium is payable up front as a lump sum.

You can benefit from GAP Purchase Price Protection as long as:

• You are the owner or the registered keeper of the vehicle.
• You have paid the insurance premium for this policy.
• The value of your vehicle does not exceed £80,000 at date of purchase.
• Your vehicle was under 8 years old at the start date of this policy.
• Your vehicle is listed in Glass’s Guide.
• Your vehicle is covered by a comprehensive motor insurance policy which is maintained in your name or under which you are a nominated/authorised driver for the duration of the insurance.
• Your vehicle is registered in the United Kingdom.
• Your vehicle was not purchased via a private sale.
• Your vehicle is not used for rental purposes or financed on a contract hire or leasing agreement.
• Your vehicle has been purchased within 60 days prior to the start date of the policy.

Financial Shortfall Protection GAP is an optional insurance policy.

If your vehicle is declared a total loss, this policy can pay the difference between the motor insurance settlement and the Early Settlement Amount you owe to the Finance Company if this is greater, up to an agreed benefit level.

There is a choice of cover periods available for this type of GAP Insurance – 12, 24, 36, 48 or 60 months cover.

This is a single premium insurance and the premium is payable up front as a lump sum.

You can benefit from Financial Shortfall Protection GAP as long as:

• You are the owner or the registered keeper of your vehicle.
• You are named as the customer in the finance agreement.
• Your finance agreement commenced within 90 days prior to the start date of this policy.
• You have paid the insurance premium for this policy.
• The value of your vehicle does not exceed £80,000 at the date of purchase.
• Your vehicle was under 8 years old at the start date of this policy.
• Your vehicle is on a finance agreement.
• Your vehicle is shown in Glass’s Guide.
• Your vehicle is covered by a comprehensive motor insurance policy which is maintained in your name or under which you are a nominated/authorised driver for the duration of the insurance.
• Your vehicle is registered in the United Kingdom.
• Your vehicle was provided by a VAT registered supplier.
• Your vehicle was not purchased via a private sale.
• Your vehicle is not used for rental purposes or financed on a contract hire or leasing agreement.

Important Notes:

In the event of a total loss, you must not accept any offer from the insurer of the motor insurance policy or accident management company until it has been approved by our insurers.

In the event of a total loss your Finance Company will detail how much is left to pay on your loan (The Early Settlement Amount). The GAP insurer will not cover the following items if they are included within this early settlement amount:

• Any amount carried over from a previous finance agreement.
• Any insurance premiums, additional interest charges, rebates, discounts, incentives and cash backs, arrears, title discharge fees.
• and any other financed amount not relating specifically to the vehicle.
• Any element of the purchase price of your vehicle that exceeds 110% of the market value of your vehicle as shown in Glass’s Guide Retail Value, at the date of purchase.

What Finance Shortfall Protection GAP doesn’t cover:

Like all policies of this type there are some things that Finance Shortfall Protection GAP does not cover. Importantly, these include:

• Your vehicle if you have not claimed under your motor insurance policy or from a third party through an accident management company or your claim has not been settled as a total loss.
• Your vehicle if it is not shown in Glass’s Guide.
• Your vehicle if it has been modified other than according with your vehicle’s manufacturer’s specification unless the modification is for mobility purposes.
• Your vehicle if it is a Grey Import.
• Your vehicle if it is manufactured in the United States of America and is not right hand drive.
• Your vehicle if it is manufactured in the United States of America and has been imported directly from that country and has not been purchased as new from an authorised United Kingdom distributor.
• Your vehicle if it is a commercial vehicle in excess of 3.5 Tonnes gross vehicle weight.
• Your vehicle if it is an Aston Martin, Bentley, BMW Alpina, Cadillac, Corvette, Ferrari, Hummer, Lamborghini, Lotus, Maserati, Mercedes Brabus, Mitsubishi Evolution, Nissan GT-R, Noble, Rolls Royce, Subaru Impreza or TVR.
• Your vehicle if it is used as an emergency vehicle, bus, courier or delivery vehicle, truck, heavy goods vehicle, invalid carrier, motorcycle, for driving school tuition, for any hire or reward or as a taxi.
• Your vehicle if it is used for track days, road racing, rallying, pace making, speed testing or any other competitive event.
• Your vehicle if it is used for rental purposes or is financed on a contract hire or leasing agreement.
• Your vehicle when it has not been supplied to you by a VAT registered supplier.
• Any theft or malicious damage claim which is not accompanied by a valid and substantiated crime reference number.
• The VAT element of any claim where you are VAT registered.
• Any amount due not relating to the market value of your vehicle at date of purchase. (This policy only covers the part of the finance agreement relating to your vehicle itself, all other elements of the finance agreement and its related interest charges are excluded)
• Any element of the original purchase price of your vehicle that exceeds 110% of the market value by reference to Glass’s Guide retail value at date of purchase.
• Any negative equity.
• Any excess deducted from your motor insurance settlement total loss claim on your vehicle.
• Any total loss where the total loss occurred before the inception of this insurance.