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What is GAP Insurance?
GAP Insurance, or guaranteed asset protection, shields you from financial loss if your vehicle is declared a write-off by your car insurer due to accidents, theft, or damage from events like floods or fires.
Typically, insurers will only pay you the value of the vehicle at the time of the incident, rather than what you originally paid. Because cars can depreciate approximately up to 60% in the first three years, that could mean a significant shortfall in finance settlement charges or a loss in vehicle value. MotorEasy’s GAP Insurance bridges the gap between your insurance payout and your vehicle’s purchase price or outstanding finance.
Additionally, MotorEasy offers various GAP Insurance options tailored to different needs, whether you've bought your vehicle on finance, lease or outright. Each policy is designed to be straightforward and provide comprehensive coverage, giving you peace of mind knowing that in the event of a total loss, the financial gap will be bridged effectively. This coverage is particularly valuable in the initial years of car ownership when depreciation is most pronounced and can significantly impact your financial stability in the wake of a vehicle loss.
MotorEasy offers up to 75% savings on GAP insurance compared to dealership prices, providing affordable financial protection for drivers.
Most cars covered
MotorEasy covers most vehicles, including new and used cars purchased from dealerships or private sellers, ensuring broad eligibility for GAP insurance.
24 hour payout
MotorEasy offers a 24-hour payout, ensuring claims are processed and paid within a day of approval.
GAP Insurance from MotorEasy covers a range of scenarios where your vehicle may be declared a total loss. This includes theft, accidental damage, fire damage, and water damage. Such comprehensive coverage ensures that if your car is severely damaged or stolen, the difference between your primary insurance payout and either the original purchase price or the outstanding finance amount will be covered.
Theft
Accidental damage
Fire damage
Water damage
Is GAP Insurance worth the money?
GAP insurance can be a valuable investment, particularly if you're concerned about the financial impact of your car being stolen or written off. It's crucial, though, to shop smartly, as dealer-sold GAP policies may cost up to three times more than those from independent providers like MotorEasy.
Following a 2015 FCA regulation, car dealers must observe a two-day cooling-off period before offering GAP insurance, although customers can waive this if they wish. When considering GAP insurance, pay close attention to the policy's scope, noting any limitations, exclusions, or potential excess charges, and don't hesitate to reach out to the seller to understand the finer details.
Other GAP Insurance benefits:
Up to £500 insurance excesses covered
Optional extras and accessories covered*
Covers European road trips
Savings on MotorEasy maintenance and repairs
A FREE MotorEasy account for updates 24/7
*Where factory or dealer fitted
What types of GAP Insurance are there?
RTI
Return to Invoice
New or used cars purchased within the last 6 months
RTI GAP Insurance covers the difference between your insurer’s payout and either the price you originally paid or the amount needed to settle your outstanding finance balance, whichever is the greater
New and used cars purchased more than 6 months ago from a private seller
RTV GAP Insurance covers the difference between your insurer’s payout, based on current value, and the original value, based on your GAP Insurance start date
As soon as you think the insured vehicle may be declared a total loss you should immediately review and proceed with the claims process found in your Policy Document (found in your MotorEasy account) before you accept any settlement offer from your motor insurer.
The specifics of your GAP Insurance policy will vary depending on the type of cover you choose but all policies work in a similar way; by bridging the gap between the value your insurer pays out in the event of a write-off or total loss and the original value of your vehicle.
For example, if you pay £30,000 for a new car and it’s written off or stolen a couple of years later, its value may have dropped to around £10,000 - so this will be the value your insurance company will pay out, leaving a big disparity. If you’re still paying off finance or a leasing company, or just want to buy the same car again, you’ll likely be out of pocket without GAP Insurance.
It will completely depend on your personal circumstances as to whether you’ll benefit from GAP Insurance, however, it’s generally thought that you will benefit from coverage if you have a new or low-mileage vehicle, in the event of a write-off or total loss. This is because new vehicles depreciate in value quickly, typically around 60% in the first three years alone.
If you’re leasing or financing a vehicle, GAP Insurance can be beneficial as, in the event of a write-off, you’ll likely be left with expensive fees to pay.
Depending on your insurance, you may be covered in the event of an incident within the first year, however, this will depend on your insurance company and cover type. You should check before buying additional GAP Insurance and set a reminder to get a new policy before this expires.
The price of your GAP Insurance will vary depending on your vehicle as well as the type, duration and level of cover you choose, however, typical policies range from £100 to £300. Prices from dealers are up to around 75% more, so buying from MotorEasy will usually save you money.
To find out how much a GAP Insurance policy is for your vehicle in seconds, you can simply apply for a MotorEasy quote.
Like all types of insurance, there is a range of options to choose from. With GAP Insurance, there are six key types of insurance, some of which may be combined in one policy:
Return to Invoice GAP Insurance - Commonly referred to as RTI, return to invoice GAP Insurance will cover you for the difference between your car insurance payout, which is based on the value of your vehicle at the time of an incident, and the price you paid for your vehicle, usually from a garage. View your RTI policy documents for more information.
Return to Value GAP Insurance - commonly referred to as RTV, return to value GAP Insurance is similar to RTI - it covers the GAP between the amount your insurer pays out in the event of a write-off and the value of your car on purchase, typically from a private seller. View your RTV policy documents for more information.
Finance GAP Insurance - often packaged with other types of GAP Insurance, finance GAP will cover the fees owed on a finance vehicle in the event of a write-off. View your Finance policy documents for more information.
Lease GAP Insurance - sometimes known as contract hire GAP, lease GAP Insurance is designed to cover those who lease a vehicle in the event of a write-off, paying the expensive lease repayment fees in the event of your lease being terminated. View your Lease policy documents for more information.
Negative Equity GAP Insurance - similar to finance GAP but usually more comprehensive, negative equity GAP Insurance covers you in the event of a write-off where the value of your loan is greater than your vehicle value, usually in the event of a vehicle being part exchanged or contract transferred to a new deal.
Vehicle Replacement GAP Insurance - a sensible option if you’ve received a discount or got a good deal on a new car, vehicle replacement GAP will cover the difference between an insurance write-off payout and the cost of replacing your vehicle if it was brand new.
A GAP Insurance policy will vary depending on the type of cover you choose but will essentially cover the difference between how much your insurance payout is in the event of a write-off or your car being considered a total loss, and the value of replacing your vehicle or the amount remaining on your finance.
With MotorEasy, you’re also covered for optional extras and accessories if they’re installed by the factory or dealer as well as up to £500 towards your insurance excess.
Shortfall insurance is just another term used for GAP Insurance - insurance that bridges the gap between your car insurance payout and vehicle value in the event of a write-off or your car is stolen.
What is and is not covered by GAP Insurance will vary depending on the type of GAP Insurance you choose, however, there are several common exclusions with all GAP policies:
Before purchasing GAP Insurance, make sure you have the right type of car insurance. A comprehensive insurance policy is needed with all GAP coverage
If your vehicle isn’t a write-off or total loss, you won’t be covered with GAP Insurance
GAP Insurance covers “normal road driving” with cars that haven’t been modified - competitive driving, modifying a car and other exceptions may apply
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