What is Invoice GAP insurance?
If your car is written off, the combined nature of this type of cover aims to pay the difference between your motor insurer's valuation of the vehicle and the higher of either the finance agreement settlement figure at the time of claim (if applicable) or the original invoice price that you paid for your vehicle when you first bought it. It will also reimburse you up to £750 of excess deducted by your motor insurer and should you need to, you can build in cover for up to £3,000 of negative equity brought forward from a previous vehicle.
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Our customers saved
On average
£260
At most
£1,647
Largest claim paid
£49,475
Average claim paid
£4,841
How does Invoice GAP insurance work?
Invoice GAP insurance is the most commonly purchased type of GAP insurance in the UK today (primarily because it's usually the highest level of cover offered by Motor Dealers). It's a combination of both Finance GAP and Invoice GAP insurance, thereby providing the best of both cover types.
In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft or flood, Invoice GAP insurance aims to pay the difference between your motor insurer's valuation of the vehicle and THE GREATER OF either:
- The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
- The ORIGINAL INVOICE PRICE that you paid for your vehicle when you first bought it.
For most people who go on to make a claim, having their motor insurer's valuation of the vehicle topped up to the original invoice price of the vehicle by way of an Invoice GAP insurance pay-out, would leave them in the position of being able to both clear any outstanding finance and have money left over to put towards the cost of their next car.
If you need assistance determining whether this type of cover is suitable for your needs, please contact us.
Policy documents
Add a little TLCc to your GAP insurance:
Total Loss Courtesy Car
If your vehicle is damaged in an accident, your motor insurance policy will normally provide you with a courtesy/hire car whilst the damage to your vehicle is being assessed.
If they determine that your vehicle is repairable, you would normally have the use of that courtesy car for the duration of the repairs.
However...
If they decide that the damage to your vehicle is beyond repair and subsequently declare it a Total Loss (they write it off), you would then not normally be entitled to their courtesy car any longer (unless you've paid them an additional premium for such entitlement) and, it would be withdrawn: leaving you without the use of a vehicle.
Depending on how much longer they take to settle your claim, you might be without a vehicle for a number of days - or even weeks!
Building in Total Loss Courtesy Car cover (TLCc) to your GAP insurance policy with us, means that in the event your car is declared a Total Loss, we will provide you with a courtesy car for you to use for up to 28-days.
TLCc Cover Features:
The car provided:
- Will be of a similar sized engine to Your vehicle that was deemed a Total Loss (limited to a maximum of a 2.0 litre manual car or equivalent)
- Will be insured. Please note that an excess (normally £250) will apply to accidents/claims occuring during your use of the courtesy car. Exact terms will confirmed prior to you accepting delivery of it.
- Will be able to be delivered to and collected from your home or place of work.
For more information please review the Ts & Cs of our GAP insurance policies here, or generate a quote.
Do I need Invoice GAP insurance?
GAP insurance is an entirely optional form of insurance and some people will have a greater need for it than others.
Without GAP insurance in force, if your car is written off, you'd only have your motor insurer's valuation of the vehicle coming your way. If you have finance outstanding on your written-off vehicle, your motor insurer's valuation of the vehicle may not be sufficient to clear the outstanding balance, in which case, you'd have to use your own funds to both clear the remaining finance on the written off vehicle and fund a replacement vehicle.
Of course if you had no finance outstanding at the time of write-off, then in theory you could use your motor insurer's valuation of the vehicle to buy a vehicle of a similar age, condition and mileage as your vehicle at the time it was written off but, if you wanted anything newer or better etc, you'd have to use some of your own funds to cover the difference.
Invoice GAP insurance would aim to top-up your motor insurer's valuation of the vehicle at the time of claim to the original invoice price that you paid for your now written-off vehicle when you first bought it. If you have finance outstanding you would use this original invoice amount to clear the outstanding finance and any remaining funds would be yours to use against the cost of your next car. Of course, if you had no finance outstanding then you'd have this original invoice amount at your disposal to buy another car with.
In short... if you can comfortably afford to stand the combined cost of clearing any finance outstanding (where applicable) and replacing your vehicle in the event it's written off, you probably don't need GAP insurance. However if you could not comfortably afford to replace your vehicle or, you'd prefer that your own savings were not 'hit' by the cost of replacing your vehicle if it was written off, therein lies the need for Invoice GAP insurance.
Am I eligible for Invoice GAP insurance?
You can buy Invoice GAP insurance to cover a New or Used car that:
- Is covered by a comprehensive motor insurance policy.
- You are the owner or registered keeper of.
- Is less than ten (10) years old at the start date of this policy.
- You have not yet taken delivery of or, you took ownership/delivery of within the last 3 months.
- You have NOT changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
- Has not previously been declared a Total Loss and is not already the subject of a previous incident or existing motor insurance claim which could yet result in it being declared a Total Loss.
- Is registered in the UK.
- Was bought for no more than £100,000.
- Is not a commercial vehicle.
- Is not being used for: rallying, racing, any competitive events, off road (including green laning), emergency services use (blue lights), hire (including private hire, taxis and chauffeur) or for driving school tuition.
- Is not already covered by a GAP insurance policy.
- Was bought cash outright, personal loan (secured or not), or financed by way of a HP, PCP or Conditional Finance Agreement.
- Is not a specifically excluded vehicle.
- Is not a van, car derived van, motorcycle, motorhome or campervan.
So long as you:
- Are a permanent resident of the United Kingdom (England, Wales, Scotland, Northern Ireland, Channel Islands and the Isle of Man), or a UK registered company.
- Bought the vehicle from a VAT registered motor dealer.
You can NOT buy Invoice GAP insurance for a vehicle that:
- Is not covered by a comprehensive motor insurance policy.
- You are not the owner or registered keeper of.
- Is more than ten (10) years old at the start date of this policy.
- You took ownership/delivery of more than 3 months ago.
- You have changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
- Has previously been declared a Total Loss or, is already the subject of a previous incident or existing motor insurance claim which could yet result in it being declared a Total Loss.
- Is not registered in the UK.
- Was bought for more than £100,000.
- Is a commercial vehicle.
- Is (or will be) used for: rallying, racing, any competitive events, off road (including green laning), emergency services use (blue lights), hire (including private hire, taxis and chauffeur) or for driving school tuition.
- Is already covered by a GAP insurance policy.
- Is the subject of a Contract/Lease Hire Agreement.
- Is a van, car derived van, motorcycle, motorhome or campervan.
- Is a specifically excluded vehicle.
Key features of Invoice GAP insurance
- A combination of Finance and Invoice GAP Insurance - covering up to the greater of either the outstanding finance at the time of claim or the original invoice price.
- Available for Cars up to 10 years old, purchased within the last 3 months from an authorised dealer or finance house.
- NO Market Value clauses.
- Ability to cancel the policy at any time and receive a daily pro-rata refund of unused premium (a cancellation fee may apply).
- CASH payout to you rather than to a nominated dealer, leaving you free to choose the provider of your replacement vehicle.
- ALL named drivers on the Motor Insurance policy, covered.
- Available for Cars bought for up to £100,000
- OPTION to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.
- OPTION to include the provision of a courtesy car for you to use for up to 28-days in the event your vehicle is a declared a total loss.
- Underwritten at Lloyd's by Arch Managing Agency Limited.
- Pays up to £750 towards the excess on your Comprehensive Motor Insurance policy.
- FREE transfer of any unused premium on to a new policy on a replacement vehicle
- NO right to revalue the invoice price of your vehicle at the time you bought it.
- Policy durations of up to 4 years available.
- Claim Limits of up to £75,000 available.
- FREE policy amendments.
| Feature | Details |
|---|---|
A-Rated Insurer? |
|
ALL named drivers on your motor insurance policy, covered? |
|
NO Pre-Approval clause with penalty? |
|
Total Loss Courtesy Car available? |
Subject to an additional fee being paid.
|
Ability to cover Negative Equity brought forward from a previous vehicle? |
Max £2,000 Subject to an additional fee being paid.
|
Initial Cooling Off Period? |
30-days |
Pro-Rata rebate of unused premium if you cancel outsde of the initial Cooling Off Period? |
Daily Calculation |
Pays out in cash to the policyholder? |
After all parties with an interest in the vehicle have been paid (e.g. a finance company), any/all excess funds are paid directly to the policyholder leaving them free to use those funds against the cost of sourcing any vehicle from any dealership of their choice. |
| Cover for dealer fitted accessories? | Up to £1,500 worth |
| Transferable? If you sell your vehicle and have not claimed on your GAP insurance policy, can the unused portion be transferred forward on a new vehicle? |
We will cancel your policy and allow you to transfer forward, the financial value of the remaining period of your cover, against the cost of a new policy on a new vehicle. No cancellation, transfer or admin fees will apply. |
| Will pay towards your Motor Insurance excess in the event of a successful Total Loss claim? | £750 |
| NO Market Value clauses? A Market Value clause permits the claim administrator to reduce the amount of your claim based either on their belief that you paid too much for it when you originally bought your vehicle or, if your motor insurer pays out less than they think your car is worth at the time of claim - potentially both. Where possible you should avoid any GAP insurance policy that has one or more market value clauses permitting such a reduction in the amount of claim. |
None |
| Maximum age of vehicle that can be covered? | 10 years old |
| Maximum vehicle value? | £100,000 |
| Maximum Claim Limit available? (Subject to the vehicle value) |
£75,000 |
| Maximum duration of cover available? | 4 Years |
Is there a cancellation Fee if cancelled outside of the initial Cooling Off Period? |
£15.00 Waived if a new policy is purchased.
|
How long after taking delivery of the vehicle, do have to buy GAP insurance? |
3 Months |
| Available for both New and Used vehicles? | |
Allows for vehicles to be modified? |
|
Ability to defer the start date of the policy by up to a year from when the vehicle was first registered? |
Recent Invoice GAP insurance claims
Below are a selection of our most recent Invoice GAP insurance claims:
BMW 4 Series
- Length of ownership:
- 20 Months
- Rate Of Depreciation:
- An average of £450.35 per month
- Total Depreciation:
- 33.36% of its original Invoice Price during the 20 months it was owned.
- Policy Cost:
- The policy cost £265.29 (2.95% of the amount the policy paid out.)
Lexus NX
- Length of ownership:
- 37 Months
- Rate Of Depreciation:
- An average of £133.14 per month
- Total Depreciation:
- 12.96% of its original Invoice Price during the 37 months it was owned.
- Policy Cost:
- The policy cost £265.29 (5.39% of the amount the policy paid out.)
Volkswagen T-Roc
- Length of ownership:
- 44 Months
- Rate Of Depreciation:
- An average of £183.75 per month
- Total Depreciation:
- 39.51% of its original Invoice Price during the 44 months it was owned.
- Policy Cost:
- The policy cost £174.60 (2.16% of the amount the policy paid out.)
Audi Q5
- Length of ownership:
- 8 Months
- Rate Of Depreciation:
- An average of £105.13 per month
- Total Depreciation:
- 2.80% of its original Invoice Price during the 8 months it was owned.
- Policy Cost:
- The policy cost £265.29 (31.54% of the amount the policy paid out.)
Renault Megane
- Length of ownership:
- 15 Months
- Rate Of Depreciation:
- An average of £181.93 per month
- Total Depreciation:
- 27.02% of its original Invoice Price during the 15 months it was owned.
- Policy Cost:
- The policy cost £196.86 (7.21% of the amount the policy paid out.)
Honda Jazz
- Length of ownership:
- 16 Months
- Rate Of Depreciation:
- An average of £332.50 per month
- Total Depreciation:
- 18.52% of its original Invoice Price during the 16 months it was owned.
- Policy Cost:
- The policy cost £252.03 (4.74% of the amount the policy paid out.)
Vauxhall Astra
- Length of ownership:
- 26 Months
- Rate Of Depreciation:
- An average of £117.31 per month
- Total Depreciation:
- 21.03% of its original Invoice Price during the 26 months it was owned.
- Policy Cost:
- The policy cost £163.24 (5.35% of the amount the policy paid out.)
BMW 1 Series
- Length of ownership:
- 13 Months
- Rate Of Depreciation:
- An average of £691.67 per month
- Total Depreciation:
- 26.01% of its original Invoice Price during the 13 months it was owned.
- Policy Cost:
- The policy cost £238.76 (2.66% of the amount the policy paid out.)
Mini Cooper S
- Length of ownership:
- 19 Months
- Rate Of Depreciation:
- An average of £118.89 per month
- Total Depreciation:
- 12.70% of its original Invoice Price during the 19 months it was owned.
- Policy Cost:
- The policy cost £164.77 (7.29% of the amount the policy paid out.)
Vauxhall Corsa
- Length of ownership:
- 21 Months
- Rate Of Depreciation:
- An average of £108.86 per month
- Total Depreciation:
- 30.48% of its original Invoice Price during the 21 months it was owned.
- Policy Cost:
- The policy cost £129.85 (5.68% of the amount the policy paid out.)