GAP insurance Facts: Finance Settled

GAP insurance isn't always what it seems when it comes to understanding how it will deal with your Finance Agreement secured on your vehicle.

Depending on the nature of your Finance Agreement and how soon in to it that your vehicle was declared a Total Loss (aka "Written Off"), the Finance Agreement Settlement Figure, even with early redemption, could end up being greater (due to interest and finance charges) than the original invoice price you agreed to buy the vehicle for.

With a "standard" Invoice GAP insurance policy, the best you'll ever get back to is the original invoice price that you bought the vehicle for, which in the circumstances described above, would leave you still needing to find the funds to settle the amount by which the settlement figure exceeded the original purchase price.

Looking at it another way, if you just had a Finance GAP insurance policy, then over time the balance outstanding will be ever decreasing, therefore the more time that passes the less the policy will potentially pay out when attempting to cover the difference between your Motor Insurance payout and the outstanding balance on the Finance Agreement.

Our Invoice GAP insurance policy delivers the best of both worlds.

In the event of your vehicle being written off through accident, fire, theft or flood, it aims to cover the difference between your Motor Insurance payout the higher of EITHER:

  • The amount outstanding on finance at the time of loss, OR
  • The original purchase price you bought your vehicle for.

Our Replacement GAP insurance policy goes one step further by aiming to cover the difference between your Motor Insurance payout and the higher of EITHER:

  • The amount outstanding on finance at the time of loss, OR
  • The original purchase price you bought your vehicle for, OR
  • What it would cost at the time of claim to replace your written off vehicle with one of the same (or nearest super-seded equivalent) make, model, specification, age and mileage as the original vehicle you purchased.

Get A Quote Here

Please complete the details below to get a GAP insurance quotation: