Gap Insurance Guide
Other Insurance Products
Frequently Asked Questions
Some policies do not provide cover in this instance. All GAP insurance policies do cover you if your house is broken into and your car keys stolen.
I own the car and have it insured in my name but my husband is a named driver. Is he covered?
GAP insurance policies cover all named drivers on your motor insurance policy.
I own the car but am not the main user on the insurance policy. Who’s name do I apply for GAP?
The registered owner or keeper needs to be the applicant for the GAP insurance policy.
Which policy should I buy if my car is on finance?
If the car is on a purchase-based finance arrangement, ‘Finance GAP’ or ‘Back to Invoice GAP’ would be most appropriate.
In most cases, ‘Finance GAP’ would clear any outstanding finance but that is all. ‘Back to Invoice GAP’ will endeavour to return you to your original invoice price.
Is ‘Finance GAP’ the same as ‘Contract Hire GAP?’
This depends on the supplier but you really need to double check the small print. ‘Contract Hire GAP’ is specifically for contract hire and can cover up to 100 per cent of outstanding rentals.
When do I have to take out a GAP Insurance policy?
You must apply for a GAP insurance policy within three months of delivery of your vehicle, irrespective if your primary insurer offers a replacement facility in the first year. In this case (and if you make a claim in the first year), we will transfer the policy to the replacement vehicle..
I have owned the vehicle for more than three months. Can I still have GAP insurance?
If you own a car or light van, we are able to offer ‘Agreed Value’ GAP insurance. This uses Parkers Guide’s current 'Private Good' valuation price instead of the original invoice price. A link to access this information is available on the quotation page.
I own my car outright – which GAP insurance do I apply for?
If your car is new or nearly new, we are able to offer you ‘Vehicle Replacement’ insurance – this policy replaces new for old.
For used cars, we would suggest ‘Back to Invoice,’ which pays the difference between the primary insurer’s settlement and your original invoice price.
How much cover do I need?
If the car is on a lease (contract hire), it’s worth checking with the leasing company their policy on charges if the contract is settled early. Many leasing companies charge between 50 and 60 per cent of outstanding rentals while some will charge you 100 per cent of outstanding rentals.
If you own the car or are buying it on finance, it’s best to check the second hand value of your car – for example what it will be in two, three or four years time. We will be delighted to assist you with this.
Won't my insurance company pay off the finance house if my car is written off?
Your primary insurer will normally pay you the current market value of the car and that is all. If this is insufficient to clear any outstanding finance, you will still need to clear the outstanding balance.
Is my GAP insurance protected?
The Financial Services Authority (FSA) compensation scheme protects all our policies.
I bought my car from a private individual – can I still have GAP insurance?
We are able to offer ‘Agreed Value GAP’ in this instance but not any other type of policy.