Gap Insurance

Nowadays you can do all your shopping online without having to drive, pack and unpack your car. So, why not use the internet for all your gap insurance needs as well, organising comprehensive cover from the comfort and security of your own home.

If you are looking for gap insurance, then why not try using Click4Gap, it is a lot easier, cheaper and much more efficient and you don't even have to pick up the phone! With just the click of a button you are able to find comprehensive gap insurance options and advice without having to go through all the hassles of dealing with finance and loans companies. Our cover is every bit as good if not more comprehensive than the car dealer packages and at far more competitive prices too. If you would like any information on whether or not you actually need gap cover or if you are unsure if you qualify, have any questions about us or our insurance policies; feel free to give us call on 0844 357 8300. We are always happy to chat to our clientele.

Our enthusiasm to provide all clients and potential customers with assistance and advice is very evident in all the work we do. We appreciate that our customers need to understand gap insurance and save themselves money and time. We are also firm believers that the internet is the perfect means to share all the information and advice you need. Click4gap is here to help you help yourself.

So what does Gap Actually Do?
Guaranteed asset protection or (GAP) provides the coverage in the event that your new car is in an accident and totaled or written off. This protection also assists you when the car you purchased is stolen. These types of insurance will pay for the gap (or difference) between the amount due or left on the finance of the car, and the actual cash value of your new car at the time of the accident or theft. In this way you are protected if your insurance pays out less than what you still owe on the finance of your car. Guaranteed asset protection insurance is also known as: Return to Invoice Insurance (RTI), Back to Invoice Insurance, Finance Gap Insurance, Vehicle Replacement Gap (VRI), Total Loss Gap, Shortfall Cover (or protection) and Car Gap Insurance. Not all gap policies are the same! VRI (Vehicle Replacement Insurance) is a different product to New Car Finance Gap and RTI for example.

In the UK a gap policy is a stand-alone policy that will insure the depreciation for your vehicle in the event of total loss of the vehicle. This type of policy is not included in your standard UK motor insurance policy, but it does protect you, as the individual, from any serious financial loss in the event of your vehicle being written off or stolen. Your motor insurance company will usually only settle the depreciated amount or value of the vehicle before the accident and not the original amount that you had paid for your vehicle at the time of purchase. Simply put: this type of insurance covers the difference between the amount you paid for the car, the amount still due for the full purchase of the car (such as outstanding payments) and the actual value of the car at the time of the accident or theft.

Having a UK gap policy is extremely important as your car insurance company will only cover the vehicles pre accident; or theft, depreciated value, which means that the amount they actually pay you out is often far less than the true retail value of the vehicle. The very minute that you start to drive your new vehicle, the value of the car begins to depreciate, and in many cases the motor vehicle depreciates in value while still sitting on the show room floor! You will then be at risk of losing an asset that is already a lot less valuable than what you originally paid for it in the first place.

A shrinking New Car Market
As everyone is aware the current Global recession has put huge pressure on the motor manufacturers, to the extent that Toyota are reported to have resorted to storing thousands of new and unsold cars on freight ships. This means that as new car prices are forced downward by Dealerships in an effort to meet sales quotas, used vehicles prices continue to plummet. The result is record levels of new car depreciation every month and that is why GAP COVER is a great insurance product for new car buyers!

Gap insurance or Guaranteed Asset Protection gives you added financial protection when your car is written off or stolen. If you have purchased your new vehicle using a finance or lease option, then the gap policy will cover the difference between the vehicle’s pre-accident value and the outstanding amount still owing on the finance of the vehicle.

You may find you need Return to Invoice Insurance (RTI) if you have purchased a new or used car. No matter if you purchase with cash, finance, contract hire or have leased the vehicle, even if you have borrowed money through a bank or motor loan, you will find this type of guaranteed asset protection will suit you. RTI protects you by paying out the difference between the total depreciated value pre-accident or theft (determined by your motor insurance broker) and the original total amount you paid for the car. This basically means that you will not lose out at all, getting the full purchase price back out after an accident or theft.

Another type of guaranteed asset protection is Vehicle Replacement Insurance (VRI), which is best suited to new car purchasers (no matter the type of purchase you use; cash, finance, contract hire or lease). This option states that you will receive (in the event of a serious accident or a theft) a brand new vehicle of the same type of vehicle or reasonable equivalent, regardless of any changes in pricing.

Though it may sound like an extra expense for you as the customer, gap policies are an important necessity for all new or used cars with or without finance. They are especially relevant if you have some form of deposit on your new or used car. A gap policy will be the lifesaver you are looking for, that is the reason they are there and available for all car purchases.

As the name of this type of insurance implies, a gap policy covers what the standard insurance policies do not. It simply fills the gap between what the insurance company pays out for your car when it is written off and what you still owe on the car. Guaranteed asset protection can also be called: Car Gap Protection, Return to Invoice (RTI), Back to Invoice, Finance Gap Protection, Vehicle Replacement Gap (VRI), total loss gap, shortfall cover and car gap insurance.

If you find that a gap policy is required for your new lease but not included within the lease, then you should definitely shop around for the best prices and find out which companies offer this type of policy. If you find that the gap policy is included within your lease you should remember to check how much they are offering and how much you are paying for it.