GAP insurance covers you for the shortfall between the insurance settlement value for a vehicle that has been stolen or written
off and the amount of money still outstanding on the finance agreement.
What is GAP Insurance?
If your vehicle is declared a total loss as a result of an accident, theft, fire or flood, there is a risk that your motor insurance settlement may not
completely pay off the outstanding finance owed on the vehicle, leaving you with the balance to pay off for a vehicle you no longer have.
Finance GAP pays the difference between the motor insurer settlement and the outstanding finance on the vehicle, up to a maximum of £10,000 or £15,000 (subject to eligibility). In
addition to this, we will also pay you up to £250 of your motor insurance excess in the event of a "fault" claim.
This insurance is designed to pay for the financial shortfall between the amount you receive from your motor insurance policy in the event of your insured vehicle being a Total Loss
following accidental damage, fire or theft and the amount you require to settle your finance agreement up to the maximum stated in your policy schedule. The payment of any shortfall is
subject to terms and conditions.
This is an example of how GAP insurance works:
- You lease a vehicle which had an original value of £18,500
- 12 months later the vehicle is involved in an accident and written off
- The outstanding value of the vehicle under your finance agreement is £13,700 but the insurance payout is only £12,400
- Subject to the policy terms & conditions, GAP insurance will pay out the £1,300 shortfall
- Vehicles up to £125,000 invoice price
- Cars and commercial vehicles up to 3.5 tonnes
- Vehicles less than or equal to 6 years old
- For vehicles financed on any funding agreement (excludes cash purchases) please note
the following vehicles and uses are excluded: emergency vehicles, taxis, buses or driving schools
- Any warranty charges, insurance premiums, road fund licence, and dealer-fitted extras and accessories
- A vehicle written off whilst being driven illegally under the influence of drugs or alcohol
- Vehicles NOT insured under a comprehensive UK motor insurance policy throughout the term of cover
- If the vehicle is stolen by any person who has access to the keys
- If the vehicle has been modified in any way from the manufacturer's specification
Duration of Cover
- For up to 60 months in line with the finance agreement; or
- until the vehicle is sold; or
- until the finance is terminated — whichever is sooner
How much does it cost?
|£0 to £37,500
|£37,501 to £75,000
|£75,001 to £115,000
This product description is a general overview of this type of product.
It is not designed to represent terms and conditions for policyholders. If you are a policyholder, please refer to your
Policy Document for the full terms and conditions of your policy.
Call us to discuss your requirements on 01282 969 660