Gap Insurance Coverage

We provide gap insurance to cover all types of vehicles. Our gap car insurance is second to none. We offer three main types of gap car insurance products depending on what your needs are. Our products have been developed by taking feedback from our customer in oder to ensure that we provide market leading gap products. Gap insurance will protect you against the risk of an insurer not paying out the full value of your car. Most insurance policies pay out an amount that is less than the market value of a car.

Back to Invoice Car Gap Insurance

This type of gap insurance for your car protects you and your car’s value by making sure that in the event of an accident that results in the writting off of your car that you recieve an amount to bring the total up to the car’s invoice value. If you are unluky enough to write off your car then the insurance covers the difference between the amount you recieve from the insurer and the amoint that you paid for the car when it was purchased. This can apply to new cars or to second hand cars.

Back to Value Car Gap Insurance

This gap product protects by covering you up to the value of your car as at the date on which you took out the gap policy. It works by establishing the value of your car on the day that the insurance is taken out. This value is calculated to be the market value of the car on that date. If you find that you have to make a claim then you are paid the difference between what the insurer ends up paying to you and the value that you have covered the car for with the invoice gap insurance taken out.

Finance Gap Car Insurance

If you have car finance on your vehicle then this product is appropriate for you. The gap cover makes sure that you will be able to repay the full finance amount should your car be written off. This type of gap insurance for your car works in much the same way as the above but pays out an amount to meet the shortfall between what is recieved from the insurance company and the amount of finance outstanding on the car. Gap car insurance makes sure you don’t end up out of pocket.

What Does GAP Insurance Cover Anyway?

Studies show that 9 out of 10 people have never heard of GAP car insurance. This is a pity because GAP insurance can be extremely beneficial to car owners. However, to maximize its benefits, you must understand what it is in the first place and how it works.

Today, more and more car loan companies make it possible for consumers to buy car with little or even zero money down. This can really be helpful, especially to those who simply do not have the resources to be able to shell out money for the down payment. However, you have to remember that car loan companies run a business; all businesses have one goal—to make profit.  They will not allow anyone to be able to get a car for zero money down if they will not gain from it sooner or later. And more often than not, car companies indeed gain something from consumers who pay little or no money down when purchasing a car. This comes in form of a “gap”.

When the value of your car is lower than the loan amount, your standard insurance will not cover anything that is over the worth of your car. For example, let us say you bought a car for £30,000. After a year, it got damaged in an earthquake. The value of your car by this time is £27,000. However, the amount of loan including all the taxes and interest is £33,000 and your lender still wants the full amount. Your standard insurance will cover just £27,000. If you have GAP insurance, the remaining £6,000 will be taken care of.

In the previous example, GAP protection proved to be advantageous. However, let us say that for this next example, the same things go. However, note that apart from your standard insurance, your car only has collision insurance. When you filed a claim for GAP insurance, your claim was deemed invalid. This is because any vehicle that does not have both collision and comprehensive insurance are not eligible for gap car insurance. Therefore, the money you paid for it is simply useless. This only means that to make use of the advantages of GAP, you have to know what its coverage includes and excludes.

GAP car insurance will provide coverage for losses that resulted from almost all reasons including accidents, vandalism, theft and natural disasters such as hurricanes, fires, floods, earthquakes, tornadoes, and the like. Furthermore, most GAP insurance policies provide coverage for the deductible on your standard car insurance.
On the other hand, there are some things which would make your car eligible for a claim. If at least one of these conditions is satisfied by your vehicle, then there is no point in taking up GAP car insurance cover. Here are some of those conditions:

- cars that do not have both collision and comprehensive insurance
- unpaid loan or lease payments
- any equipment installed on the vehicle that was not factory-installed
- security deposits or financial penalties
- extended warranties
- money rolled into the loan like that from leased vehicles or from trade-ins