Frequently Asked Questions
How quickly must I buy GAP Insurance?
At Click4GAP we understand that taking delivery of your new car is an exciting time! You have a lot of important things to remember, so that’s why Click4Gap give you 90 days to take out your GAP protection.
It is important to remember that until you purchase your policy the financial risk is yours. So if you are intending to buy GAP Insurance, it's better to buy sooner rather than later.
After 90 days, you are still able to purchase Return To Value GAP insurance (RTV). RTV pays the shortfall between the value of the car today, and the value at time of loss.
If you are the first and only registered keeper of your new car then there are some comprehensive motor insurance policies that may offer “new for old” cover.
This means that if your car is declared a total loss or is written off with the first 12 months then motor insurer has the option to replace your car “like for”. So they would provide a replacement car of identical make and model from the cheapest source.
If this is the case for you, then the GAP insurance policy may overlap with new-for-old cover within the first year. However, it is still a valuable insurance for a number of reasons.
Firstly, if you have a GAP policy then you will have the choice of replacing your car with the latest model or even a totally different car. With the motor insurer’s “new for old” cover, the car is chosen for you and will have to match the original specification.
It’s also important to remember that after the first 12 months, your car will no longer be eligible for RTI or VRI GAP insurance, leaving you unable to insure your car’s depreciation from the vehicle purchase price in years two, three or four.
There are also some circumstances where your insurer may revert to standard comprehensive cover and reduce your settlement to market value only.
This could be for a number of reasons. For example, if the model is no longer in production, if the vehicle has been stolen rather than being involved in an accident, if they are unable to source a replacement vehicle within a certain amount of time after the incident, the overall condition of the vehicle or exceeding the annual mileage allowance pro rata.
So to clarify, you have up to 90 after the purchase date of your vehicle to purchase gap insurance. Even if you have “new for old” cover on your comprehensive motor insurance policy, a GAP policy is still a valuable insurance to have to protect your financial investment.