Gap Insurance Guide
Other Insurance Products
Choose the right policy
Over half a million vehicles are stolen each year and a good number of these are written off.
Add to that the large number of accidents each year and you could be the next person to suffer the implications of a financial shortfall, if your vehicle was written off.
Many of us think our comprehensive motor insurance covers all potential losses if our vehicle is written off... think again.
Without a GAP insurance policy, you could be liable for any financial shortfall settlement. Primary insurers will only settle at Glass’s Guide’s current market values at the time of write-off.
We can offer the following low-cost GAP insurance policies for most new vehicles and vehicles up to five years old, if bought or leased in the last three months with the exception of ‘Agreed Value GAP’ (for cars and vans up to ten years old – more information at the bottom of the page).
‘Back to Invoice’ GAP insurance – for cars and light vans
Eligibility –
Hire purchase, lease purchase, personal contract purchase (PCP), outright purchase and personal loan.
‘Back to Invoice’ is available to a company or private individual whether the vehicle is on finance (except contract hire), owned outright or on a personal loan.
We can supply cover for vehicles up to five years old for a maximum of four years. When the vehicle is purchased, either outright or on finance, the motor dealer will supply you with an invoice stating the invoice price you have paid for the car – the figure you use is prior to any deposit deductions.
In the event of an insurance write-off, including theft of keys, your motor insurance policy will pay you, what they believe is the current market value of the vehicle – this could be substantially less than you paid for it.
A ‘Back to Invoice’ insurance policy will pay to you the difference between the insurance settlement and your original invoice price. If the vehicle is on finance, you should still benefit from a considerable contribution towards the purchase of a replacement car of your choice when the finance is settled off.
‘Vehicle Replacement’ GAP insurance – for cars and light vans
Eligibility –
Owned outright or on a personal loan.
Available for new or nearly new cars and light vans for a period of 1 to 4 years cover.
In the event of an insurance write off, your motor insurance provider will only pay you what they believe is the current market value for the vehicle – substantially less than you paid for it.
Your insurer will pay a nominated dealer their settlement and your ‘Vehicle Replacement’ GAP policy will pay the dealer the difference in the value of replacing the car or van with a new or nearly new one (of the same or similar specification as the original). If this is not possible, a cash alternative will be given.
Contract hire GAP insurance – for cars, vans and trucks up to 44 tons
Eligibility –
Contract hire and personal contract hire.
Contract hire/lease GAP is available for cars, vans and trucks financed under a contract hire agreement only and is available to companies and private individuals. We can cover vehicles that are up to five years old at the start of the policy for a maximum period of five years – effectively meaning the vehicle could be ten years old on its return.
If the vehicle is written off, you will be personally liable for any financial shortfall remaining. Leasing companies will typically charge anything from 50 per cent to 100 per cent of the outstanding rentals.
Finance GAP insurance – for cars, vans and trucks up to 44 tons
Eligibility –
Hire purchase, lease purchase and personal contract purchase (PCP).
Finance GAP is available for cars, vans and trucks financed under a finance agreement other than contract hire. Finance GAP insurance is also available to companies and private individuals on vehicles up to five years of age for a maximum cover period of five years, bought within the last three months.
If the vehicle is written off during the period of the finance agreement, without taking out finance GAP, you will be liable for any financial shortfall not covered by your general motor insurance policy.
‘Motorcycle Back to Invoice’ GAP Insurance
Eligibility –
Hire purchase, lease purchase, personal contract purchase (PCP), outright purchase and personal loan.
'Motorcycle Gap Insurance’ is an essential part of insurance cover for your motorcycle. If you have fully comprehensive insurance you should consider protecting your motorcycle with a GAP insurance policy.
In the event of an insurance write off through accident, fire or theft, including theft of keys, your motorcycle insurer will only pay out the depreciated current value of your motorcycle – leaving you considerably out of pocket.
A ‘Motorcycle Gap Insurance’ policy will protect you against the shortfall from your insurer's settlement and the original invoice price you paid for the motorcycle. Motorcycle GAP polices are available from one to three years.
Eligible criteria:
- The motorcycle is less than five years old and registered in the UK
- The purchase price of your motorcycle does not exceed £20,000
- The motorcycle must be covered by a UK comprehensive insurance policy
- The motorcycle was purchased from an authorised UK distributor
- The motorcycle is not on contract hire or leased
- The motorcycle will not be used as a taxi, for self drive hire, reward, courier work, motorcycle delivery, speed testing, road racing, pace making, in rallies, competitions or used as a service motorcycle
- Your motorcycle is not a trike
‘Motor Home Back to Invoice’ GAP Insurance
Eligibility –
Hire purchase, lease purchase, personal contract purchase (PCP), outright purchase and personal loan.
‘Motor Home Back to Invoice’ GAP Insurance is available whether the motor home is on finance (except contract hire), owned outright or on a personal loan.
We can supply cover for motor homes up to five years old which are listed in Glass’s Guide, with up to three years of cover. When the vehicle is bought, the motor dealer will supply you with an invoice stating the invoice price you have paid – the figure you use is prior to any deposit deductions.
In the event of an insurance write-off, which includes theft of keys, your motor insurance policy will pay you what they believe is the current market value of the motor home – probably substantially less than you paid for it.
By purchasing a ‘Back to Invoice’ GAP Insurance policy, it will pay to you the difference between the insurance settlement and your original invoice price. If the motor home is on finance, you should still benefit from a considerable contribution towards the purchase of a replacement even when the finance is settled.
Agreed Value GAP – for cars and vans
Eligibility –
Hire Purchase, lease purchase, personal contract purchase (PCP), outright purchase and personal loan.
This type of GAP Insurance will pay the difference between the primary insurer's current market valuation settlement and Parker's 'Private Good' valuation at the start date of the GAP policy. You may need to check the current value of your vehicle by following the ‘What’s it worth?’ link on our quotation page.
To qualify for Agreed Value GAP Insurance, your vehicle must be covered with a UK motor insurance policy and be less than ten years old.
The car or van will be eligible for this GAP policy whether bought privately or through a dealer, whether you own the vehicle outright or if it is on finance (except contract hire).
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