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What Is Gap Insurance

GAP insurance is an acronym for ‘Guaranteed Asset Protection’. The ‘asset’ is your car, the ‘protection’ is the financial cover of the depreciation of your vehicle.

So, consider what happens if your car is written-off or stolen, your insurance provider will usually ONLY pay the current market value of your car in the event of what is called a ‘total loss’ claim, i.e. when the car needs to be replaced entirely. This leaves a lot of motorists seriously out of pocket, especially as new cars depreciate massively over the first few of years (typically dropping in value between 15% and 35% in the first year and up to 50% or more over three years).

GAP insurance covers the difference (‘GAP’) between the amount your insurance provider pays and the amount you’d need to pay to buy a new or equivalent model. For example, if someone buys a new car for £35,000 which is then stolen within the first year, an insurance provider might only pay £27,500 as a ‘total loss’ payment. If vehicle owner has ‘Return to Invoice GAP insurance’, they can expect to receive the full £35,000 as a ‘total loss’ payment.


Related Reading: Do I Need Gap Insurance?


How will Gap Cover benefit me?

Gap Insurance provides you with essential protection against your car depreciating between the time you bought it and when it is stolen or damaged beyond repair.

Your motor insurance will typically pay a settlement amount equivalent to the market value at the date of loss. This can leave you with a shortfall when it comes to replacing your car, or worse, having to continue to pay the finance contract deficit.

Shortfall gap insurance is designed to cover this shortfall to ensure you’re not left out of pocket… and for the many thousands of Click4Gap policy holders who’ve suffered the total loss of their car, it’s been a life saver!

Which Gap Insurance is right for me?

There are various types of Gap Insurance available in the market, and it’s often difficult to decide which option would best suit your particular circumstances. But here are the most popular:

Combined Return to Invoice Gap Insurance

If you paid cash in full for your car or a big deposit, or financed the cost,
Combined Return to Invoice Gap Insurance will cover the difference between what you paid for your car when you bought it or the outstanding finance amount, and its market value at the time of the total loss, up to a maximum of £50,000, subject to the policy terms.

Lease/Contract Hire Gap Insurance

If you took out a lease or contract hire agreement, Lease/Contract Hire Gap Insurance will pay the difference between the market value of your car at the time of the total loss, and the outstanding balance of the lease or contract hire agreement, subject to the policy terms, plus up to £2,500 towards your first three month’s cost of rental.

Click4Gap Gap cover gives you:

  • Cover from day one
  • Cover for personal and business travel
  • Cover for new cars and used cars
  • Cover when you’re travelling outside of the UK
  • Cover for the theft of your car with the keys
  • Cover for all your named drivers at no extra cost
  • Cover with no excess on claims
  • Cover for your car insurance excess up to £500

When you choose Gap Insurance from Click4Gap

  • Pay for your policy in full or choose to pay monthly to spread the cost.
  • You don’t need a credit agreement or direct debit.

What can you expect from Click4Gap cover?

  • Low premiums: Buying online, directly from Click4Gap, there’s no additional costs meaning you could make significant savings.
  • 30 day cooling off period: You have 30 days to decide if this cover is for you and, as long as you’ve made no claim during this time, your premium will be repaid in full.
  • No mileage limit once cover starts: There is no mileage limit once your policy starts, so you can drive as many miles as you like or need to, and continue to benefit from our full protection.
  • No hidden charges: We won’t charge you if you need to make an amendment to your policy at any stage during its lifetime.
  • Quick and easy claims settlement: Our experienced claims advisors will arrange for your claim to be paid out within days of it being registered, and we’ll pay your claim directly to you!
  • No obligation cancellations: If you decide to cancel at any stage after 30 days, you’ll be entitled to a pro-rata refund, less a small administration fee, as long as you haven’t made a claim.

When should I consider Gap Insurance?

Gap Insurance is a valuable addition to your motor insurance cover, especially if you’re concerned about how much your car might depreciate after you buy it… and, if it’s a total loss, how you would cover this shortfall as well as paying for a replacement.

If your car was financed, or you took out a lease or contract hire agreement, this shortfall may well be significantly more. And, if you decided to finance with a balloon payment at the end of your contract period, you may well face serious financial difficulty.

For all of these situations, there’s a Click4Gap Gap Insurance solution that will cover the shortfall and ensure you won’t have to compromise when it comes to replacing your vehicle.


Related Reading: Understanding GAP Insurance For Cars?


Can you pay Gap Insurance monthly?

If you’re looking for the convenience and affordability of a monthly payment option, Click4Gap offers you a non-financed agreement that enables you to pay a 20% deposit on purchase, followed by nine monthly instalments to cover the balance.

You won’t be signed up to a credit agreement, we’ll require no credit references or searches, and it isn’t subject to any changes in interest rates. For more on paying monthly for Gap Insurance click here.

Can you take out Click4Gap Gap Insurance now?

The sooner you’re covered by one of our Gap Insurance cover options, the sooner you can relax and enjoy your driving experience. Getting a quote from us is quick and easy, and your cover will start from the moment you take out your policy.


Related Reading: Click4Gap Ranked #1 On MoneySavingExpert For Gap Insurance