The Risk

Around 384,000 vehicles are declared written off by insurers in the UK each year*, for many people there is a financial shortfall between the amount they receive from their motor insurance settlement and the amount required to purchase a similar vehicle. GAP insurance pays the difference between the market value settlement and the price you paid for the vehicle, meaning potentially thousands of pounds back in your pocket.
*Direct Line Group 2016

Example

If today you bought a new vehicle for £15,000, within 3 years that vehicle will be worth roughly 40% of its original value*.
If the vehicle is involved in an accident or stolen and declared written-off in its third year, your insurer could value it at as little as £6000. Guaranteed Asset Protection (GAP) Insurance pays the difference, meaning a payment of £9000 straight to you on top of your motor insurance settlement, giving you enough cash to purchase a new equivalent vehicle and get back on the road.
*Source: The AA

Detail

• Works in tandem with your standard comprehensive motor insurance policy
• Policy terms up to 36 months
• Pays the difference between your insurers settlement and the amount you paid for the vehicle, or the amount required to settle your finance agreement, whichever is greater
• Return to Invoice Advance (RTIA) GAP will pay you back up to the purchase price of your vehicle (up to £25,000)
• It also covers your motor insurance excess up to £250.00