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GAP Insurance (Finance Guaranteed Asset Protection)
A TOTAL LOSS NEED NOT BE A TOTAL DISASTER. Finance Guaranteed Asset Protection (GAP) Insurance is a policy designed to provide financial protection if you have taken out a finance agreement to fund the purchase of your car. Should your car be declared a total loss (or written off) by your motor insurance provider, a GAP policy may pay the difference between the amount paid out (the settlement) by the motor insurance provider and any outstanding finance on your car.
An example of how Finance GAP works
Let's say you paid £18,500 for your car and your car is unfortunately involved in an accident and your motor insurance provider declare it a total loss. Using current market conditions your motor insurance provider values your car at the time of the accident as £12,000. However, you still owe the Finance Company £15,000. The Finance GAP insurance may pay-out the £3,000 difference - it's as simple as that!
Is there a maximum amount Finance GAP will pay?
Yes, the claim limit is £10,000. NB: The policy also includes up to £250 of your motor insurance excess.
Can the Finance GAP policy be transferred if I replace my vehicle?
Yes, as long as the vehicle you replace it with comes within the price range specified in your schedule. In which case, the remainder of your policy term may be transferred to a replacement vehicle.
Can I cancel my Finance GAP policy in the future?
We're confident that you'll want to continue these policy benefits for the entire term of the agreement. However, we understand that circumstances may change, therefore, providing a claim has not been registered, it is possible to transfer the policy to a replacement vehicle or cancel your insurance at any point. You may be entitled to a pro-rata refund on the remainder of the policy calculated monthly for each full month left to run.*
What is the maximum term of the Finance GAP policy?
You may select a policy term from 12 months up to a maximum of 60 months to match the term of your Finance Agreement. Please note the policy will cease earlier in the event of either of the following: cancellation, a paid claim or the repossession of the insured vehicle (if subject to a Credit Agreement).
Limitations of Insurance Cover
It is important to understand that a GAP insurance policy cannot guarantee to pay off all aspects of your finance package. The maximum amount payable in respect of any one claim under the policy is up to £10,000.
The average price for this cover is £250 this can be a one off payment prior to delivery of your car or setup over 10 equal monthly installments of £25. The price may be greater for higher value vehicles.