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GAP Insurance Policy Terms and Conditions

There are two documents for each type of GAP Insurance policy, the first being the "Key Facts" document (often referred to as the "Policy Summary") which is a summary of the main features, benefits and exclusions of the policy.

The second document is the full policy Terms and Conditons. This document is exactly what you'd expect it to be and explains in considerable detail exactly what your GAP Insurance policy will and will not do, along with an explanation of how to claim and so on.

Whilst the first document makes for much easier reading and though it does allow you to somewhat easily compare our GAP Insurance policy to that of another provider, we do strongly recommend that you review both documents in detail and ask any questions that may arise, before purchasing our, or indeed any, GAP Insurance policy.

The links are to PDF documents. You'll need Adobe Reader in order to view them. This is free software already installed on most machines/devices, however should you need to download and install it, please click here.

Policy documentation will open in a new window.

Revision History

From time to time it will be necessary to revise the terms and conditions of our GAP Insurance policies. For your information any such revisions will be listed here:

Invoice Gap Insurance changes. Effective 02 August 2017:

Removed 90-day limit on cover whilst vehicle is in Europe.  There is now no time limit. The only requirement is that your Motor Insurance cover whilst in Europe needs to be of an equivalent level of cover as you would enjoy within the UK.

Replacement Gap Insurance changes. Effective 02 August 2017:

Removed 90-day limit on cover whilst vehicle is in Europe.  There is now no time limit. The only requirement is that your Motor Insurance cover whilst in Europe needs to be of an equivalent level of cover as you would enjoy within the UK.

Contract Hire GAP Insurance changes. Effective 02 August 2017:

Removed 90-day limit on cover whilst vehicle is in Europe.  There is now no time limit. The only requirement is that your Motor Insurance cover whilst in Europe needs to be of an equivalent level of cover as you would enjoy within the UK.

Invoice Gap Insurance changes. Effective 20 June 2017:

Maximum vehicle age revised to 5 years.

Replacement Gap Insurance changes. Effective 20 June 2017:

Maximum vehicle age revised to 5 years.

Contract Hire GAP Insurance changes. Effective 20 June 2017:

Maximum vehicle age revised to 5 years.

Invoice Gap Insurance changes. Effective 12 June 2017:

Documentation revised to provide clarity of exclusion for "Consequential Loss"

Replacement Gap Insurance changes. Effective 12 June 2017:

Documentation revised to provide clarity of exclusion for "Consequential Loss"

Contract Hire GAP Insurance changes. Effective 12 June 2017:

Documentation revised to provide clarity of exclusion for "Consequential Loss"

Invoice Gap Insurance changes. Effective 30 May 2017:

Documentation amended to permit cover for eligible vehicles purchased from a private seller.

Replacement Gap Insurance changes. Effective 30 May 2017:

Documentation amended to permit cover for eligible vehicles purchased from a private seller.

Invoice Gap Insurance changes. Effective 30 May 2017:

Older version of policy wordings endorsed to provide retrospective clarity over cover provided for vehicles purchased from a private seller rather than a motor dealer.

Replacement Gap Insurance changes. Effective 30 May 2017:

Older version of policy wordings endorsed to provide retrospective clarity over cover provided for vehicles purchased from a private seller rather than a motor dealer.

Invoice Gap Insurance changes. Effective 02 March 2017:

Previously our Invoice GAP insurance policy was one that worked one way (as an Invoice GAP insurance policy) for a vehicle that was being purchased, and another way (as a Contract Hire GAP insurance policy) for a vehice that was being leased.

Today we've launched a standalone Contract Hire GAP insurance policy therefore the Invoice GAP insurance policy wordings had all references to Contract Hire Agreements removed.

Contract Hire GAP Insurance changes. Effective 27 February 2017:

Launch documentation

Invoice Gap Insurance changes. Effective 14 February 2017:

Updated to better clarify the General Exclusions of the policy.

Replacement Gap Insurance changes. Effective 14 February 2017:

Updated to better clarify the General Exclusions of the policy.

Invoice Gap Insurance changes. Effective 06 February 2017:

Wording updated to better reflect; exclusions in the event of Fraud, the policyholder's duty of disclosure and cancellation rights for both the insurer and the policyholder.

Replacement Gap Insurance changes. Effective 06 February 2017:

Wording updated to better reflect; exclusions in the event of Fraud, the policyholder's duty of disclosure and cancellation rights for both the insurer and the policyholder.

Invoice Gap Insurance changes. Effective 30 January 2017:

Updated to reflect Great Lakes' (the insurer's) having moved their HQ from London to Munich.

Replacement Gap Insurance changes. Effective 30 January 2017:

Updated to reflect Great Lakes' (the insurer's) having moved their HQ from London to Munich.

Replacement Gap Insurance changes. Effective 18 November 2016:

The definition of "Replacement Vehicle" has been re-worked to clarify that the equivalent vehicle at the time of claim can be a superseded equivalent (e.g. if by the time of a claim, the original model of vehicle had been specifically superseded by the manufacturer, with a new model of vehicle, a Replacement GAP insurance claim would be handled based on the value of the equivalent superseded vehicle).

It also advises that in the event that the original model of vehicle is no longer available at the time of claim and has not been superseded by an alternative, the value of a replacement vehicle would be 110% of the original invoice price paid for the original vehicle.  This ensures that a Replacement GAP insurance policy is always providing superior cover to that of an Invoice GAP insurance policy.

Invoice Gap Insurance changes. Effective 01 July 2016:

Wordings updated to reflect that GAPinsurance.co.uk is now a trading style of Pickles & Burns Ltd (an Appointed Representative of Frank Pickles (Insurance Brokers) Ltd.

Replacement Gap Insurance changes. Effective 01 July 2016:

Wordings updated to reflect that GAPinsurance.co.uk is now a trading style of Pickles & Burns Ltd (an Appointed Representative of Frank Pickles (Insurance Brokers) Ltd.

Invoice Gap Insurance changes. Effective 10 May 2016:

Wordings updated to reflect change of underwriter from Ageas Insurance Ltd to Great Lakes Reinsurance (UK) SE.

Replacement Gap Insurance changes. Effective 10 May 2016:

Wordings updated to reflect change of underwriter from Ageas Insurance Ltd to Great Lakes Reinsurance (UK) SE.

Invoice Gap Insurance changes. Effective 18 April 2016:

Claim Administrator office address changed.

Replacement Gap Insurance changes. Effective 18 April 2016:

Claim Administrator office address changed.

Invoice Gap Insurance changes. Effective 01 February 2016:

  • The definition of "Net Invoice Selling Price" has been updated to reflect that the cost (as defined on the original purchase/sales invoice for the covered vehicle) of ancillary products such as RFL, Warranty and Service Plan (etc) would be incorporated in to any claim, on a pro-rata basis (calculated based on the amount of time remaining unused at the time of claim), only if the outstanding financial balance or service duration cannot be either claimed back from the product/service provider or carried forward to another vehicle.

    Note: when purchasing an Invoice GAP insurance policy, the declared invoice/purchase price of the vehicle must incorporate all costs for ancillary products listed on the vehicle purchase/sales invoice.
  • "Exclusion E" has been updated to remove the vague reference to "driving illegally" and better quantify that the driver of the vehicle at the time of any incident that led to the vehicle being written off, must have been driving in accordance with the terms, conditions & exclusions of his/her Motor Insurance policy.

Replacement Gap Insurance changes. Effective 01 February 2016:

  • The definitions "Net Invoice Selling Price" and "Replacement Vehicle" have been updated to reflect that the cost (as defined on the original purchase/sales invoice for the covered vehicle) of ancillary products such as RFL, Warranty and Service Plan (etc) would be incorporated in to any claim, on a pro-rata basis (calculated based on the amount of time remaining unused at the time of claim), only if the outstanding financial balance or service duration cannot be either claimed back from the product/service provider or carried forward to another vehicle.

    Note: when purchasing a Replacement GAP insurance policy, the declared invoice/purchase price of the vehicle must incorporate all costs for ancillary products listed on the vehicle purchase/sales invoice.
  • "Exclusion E" has been updated to remove the vague reference to "driving illegally" and better quantify that the driver of the vehicle at the time of any incident that led to the vehicle being written off, must have been driving in accordance with the terms, conditions & exclusions of his/her Motor Insurance policy.

Invoice Gap Insurance changes. Effective 30 October 2015:

FCA & Ombudsman contact telephone numbers updated.

Replacement Gap Insurance changes. Effective 30 October 2015:

FCA & Ombudsman contact telephone numbers updated.

Invoice Gap Insurance changes. Effective 05 August 2015:

  • Better defined Territorial Limits.
  • Effective immediately, upon cancellation, all GapInsurance.co.uk supplied Invoice GAP Insurance policies (including currently live policies) are the subject of a Daily pro-rata calculation of unused premium and that balance can either be carried forward against the cost of a new policy on a new vehicle OR received back as a refund with NO CANCELLATION FEES applied.

Replacement Gap Insurance changes. Effective 05 August 2015:

  • Better defined Territorial Limits.
  • Effective immediately, upon cancellation, all GapInsurance.co.uk supplied Replacement GAP Insurance policies (including currently live policies) are the subject of a Daily pro-rata calculation of unused premium and that balance can either be carried forward against the cost of a new policy on a new vehicle OR received back as a refund with NO CANCELLATION FEES applied.

Invoice Gap Insurance changes. Effective 25 June 2015:

Policy wordings updated in order to clarify that in the case of an electric vehicle that has been purchased but the battery leased, our policy will provide cover for the "Insured Value Of The Battery" (as declared on the separate Battery Lease Agreement) so long as the Comprehensive Motor Insurance policy covering the vehicle is also providing cover for the Battery.

In such cases the purchase price of the vehicle, declared to us at the time of purchasing the policy, needs to be the combined sum of the vehicle purchase price as declared on the supplying dealer's invoice PLUS the "Insured Value Of The Battery" declared on the Battery Lease Agreement.

Replacement Gap Insurance changes. Effective 25 June 2015:

Policy wordings updated in order to clarify that in the case of an electric vehicle that has been purchased but the battery leased, our policy will provide cover for the "Insured Value Of The Battery" (as declared on the separate Battery Lease Agreement) so long as the Comprehensive Motor Insurance policy covering the vehicle is also providing cover for the Battery.

In such cases the purchase price of the vehicle, declared to us at the time of purchasing the policy, needs to be the combined sum of the vehicle purchase price as declared on the supplying dealer's invoice PLUS the "Insured Value Of The Battery" declared on the Battery Lease Agreement.

Invoice Gap Insurance changes. Effective 02 May 2015:

  • Maximum vehicle purchase price/value INCREASED from £125,000 to £150,000.
  • Cover can now be provided for vehicles bought up to 12 months after taking ownership of the vehicle (previously 6-months)
  • Maximum potential Claim Limit (subject to vehicle value) revised from £125,000 to £100,000.

Replacement Gap Insurance changes. Effective 02 May 2015:

In the event of a claim, Replacement GAP insurance now pays the difference between your Motor Insurance payout and THE GREATER of either:

  • The amount outstanding on finance (if any) at the time of claim, OR,
  • The original invoice price you paid when you bought your vehicle, OR,
  • The cost of replacing the vehicle at the time of claim with one of the same Make, Model, Specification, Age and Mileage as your original vehicle was at the time you first bought it.
In addition, the following amendments have been made:
  • Maximum vehicle purchase price/value INCREASED from £125,000 to £150,000.
  • Cover can now be provided for vehicles bought up to 12 months after taking ownership of the vehicle (previously 6-months)
  • Maximum potential Claim Limit (subject to vehicle value) revised down from £125,000 to £100,000.

Replacement Gap Insurance changes. Effective 28 February 2015:

Replacement GAP insurance is now available for cars up to 10 YEARS old.

Replacement Gap Insurance changes. Effective 19 February 2015:

Replacement GAP insurance will now pay the difference between your Motor Insurance payout and the greater of:

a) The difference between the Insured Value and the price of a Replacement Vehicle, or
b) The difference between the Insured Value and the purchase price of the insured Vehicle as confirmed by the Net Invoice Selling Price.

Invoice Gap Insurance changes. Effective 01 June 2014:

  • INCREASED the timescale for purchasing a policy from within 105 days of vehicle purchase, to 180 days.
  • INCREASED the vehicle age limit from 8 years to 10 years.
  • INCREASED the maximum vehicle value (and corresponding Claim Limit) from £100,000 to £125,000.
  • INTRODUCED a new 5 year Invoice GAP insurance policy.
  • CLARIFIED the insurer's reserved right to cancel a policy

Replacement Gap Insurance changes. Effective 01 June 2014:

  • INCREASED the timescale for purchasing a policy from within 105 days of the vehicle being first registered, to 180 days.
  • INCREASED the vehicle age limit from 105 days to 180 days.
  • INCREASED the maximum vehicle value (and corresponding Claim Limit) from £100,000 to £125,000.
  • INTRODUCED a new 5 year Replacement GAP insurance policy.
  • CLARIFIED the insurer's reserved right to cancel a policy

Invoice Gap Insurance changes. Effective 18 October 2013:

The vehicle eligibility criteria has been expanded to permit cover for vehicles which are the subject of a Contract Hire agreement. The "Cover Provided" sections have been updated to reflect how the policy works in the event the covered vehicle is subject to a Contract Hire Agreement

Invoice Gap Insurance changes. Effective 26 September 2013:

Policy Summary (Key Facts) document updated to remove limitation of providing cover only to people who hold a full UK Driving licence. 

It is now the policyholder's responsibility to ensure that their UK Comprehensive Motor insurance policy is valid, including (where applicable) any requirement for the policyholder's non-GB Driving Licence to be valid for driving a vehicle in the UK.

Invoice Gap Insurance changes. Effective 05 June 2013:

Updated to reflect that the FSA (Financial Services Authority) has now been replaced by the FCA (Financial Conduct Authority)

Replacement Gap Insurance changes. Effective 05 June 2013:

Updated to reflect that the FSA (Financial Services Authority) has now been replaced by the FCA (Financial Conduct Authority)

Invoice Gap Insurance changes. Effective 05 April 2013:

"How To Claim" section updated to better clarify that the timescale for making a claim is now 120 days.

Replacement Gap Insurance changes. Effective 05 April 2013:

"How To Claim" section updated to better clarify that the timescale for making a claim is now 120 days.

Invoice Gap Insurance changes. Effective 28 March 2013:

  • INCREASED Vehicle Age limit from 6 years to 8 years.
  • INCREASED timescale for reporting an incident to the Claim Administrator from 30 days to 120 days.
  • REMOVED the right to revalue the purchase price of your vehicle if you paid more than the (then) current Market Value for it.
  • REMOVED the right for the Gap Insurance payout to be reduced if your Motor Insurance policy payout is lower than the Market Value of your vehicle at the time of loss.
  • REVISED the definition of the purchase price of your vehicle so that it no longer excludes cover for the following items which may form part of the purchase price of your vehicle: warranty, new vehicle registration fee, insurance premiums, road fund licence, fuel and paintwork protection applications.
  • INTRODUCED a chargeable option to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.

Replacement Gap Insurance changes. Effective 28 March 2013:

  • INCREASED timescale for reporting an incident to the Claim Administrator from 30 days to 120 days.
  • REMOVED the right to revalue the purchase price of your vehicle if you paid more than the (then) current Market Value for it.
  • REMOVED the right for the Gap Insurance payout to be reduced if your Motor Insurance policy payout is lower than the Market Value of your vehicle at the time of loss.
  • REVISED the definition of the purchase price of your vehicle so that it no longer excludes cover for the following items which may form part of the purchase price of your vehicle: warranty, new vehicle registration fee, insurance premiums, road fund licence, fuel and paintwork protection applications.
  • INTRODUCED a chargeable option to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.

Invoice Gap Insurance changes. Effective 20 February 2013:

  • REMOVED clause excluding cover for non-manufacturer endorsed dealer-fitted accessories.
  • INCREASED cooling-off period from 14 to 30 days.

Replacement Gap Insurance changes. Effective 20 February 2013:

  • REMOVED clause excluding cover for non-manufacturer endorsed dealer-fitted accessories.
  • INCREASED cooling-off period from 14 to 30 days.