GAP Insurance

When you buy a new car, it is a well-known fact that it depreciates about 30% as soon as you drive it off the forecourt. Then up to a further 77% depreciation over 3 years. So if your vehicle is written off or stolen, the insurance company from your comprehensive car cover will pay for the value it is worth at the time of the incident, not the value you paid for originally. This could have you out of pocket especially if on a finance plan or just the feeling that you don’t have the new car you originally paid for and having to settle for someone else’s second-hand motor. GAP cover, also known as Guaranteed Asset Protection insurance, as in the name, fills the gap that the insurance company won’t when you are in need of a new car, as the one you bought new isn’t around anymore.

GAP insurance can help bridge the gap between what your comprehensive car cover pays out, and what you originally paid for your vehicle. This will enable you to buy a brand new car as you had done with your previous one, rather than settle for someone else’s second-hand pride and joy. On average, depending on how long you have the car from brand new, the insurance company will pay out about 50% of the price you originally paid from new, because this is the ‘market value’ of your car at the time it was written off or stolen; GAP insurance will pay the rest, leaving you happy that you can get a brand new car as you did with your previous one.

Our GAP insurance will provide cover for you in the unfortunate case if your vehicle is written off or stolen, and your comprehensive car insurance doesn’t pay out the original amount you paid for your car, leaving you to pay another 50% or so to get the brand new car you originally bought. GAP insurance will pay that rest of the amount, bridging the gap to get everything back to how it was, but now you have a brand new car and not a second-hand one that your comprehensive car cover may only provide you in these kinds of unfortunate circumstances.

If your new vehicle is written off or stolen, then there is a change that your comprehensive car insurance will only pay out the ‘market value’ of your pride and joy. GAP insurance will ensure that you are able to also claim the rest of the amount that you originally paid for the car, enabling you to go out and purchase the same brand new model. There are a few levels of GAP insurance such as to replace your vehicle back to its original value, giving you the money to go out and buy a new one, or to help pay off the rest of your finance payments. Speak to a GAP insurance expert to discuss your best options.

Yes. To have access to GAP insurance, you will need to have fully comprehensive car insurance to go with it. If your claim is rejected from your insurance company then there is a chance that your GAP insurance will not be valid, as both covers work together in a sense to give you 100% of the value you originally paid, so you can go back to where you were in the beginning with your previous car, sitting in a brand new seat, holding a brand new steering wheel, rather than settling for a second-hand option due to the rapid decrease in the market value of your vehicle as soon as you drove it off the dealership’s forecourt.

Yes. With The Bateman Group, we are able to provide you high-value car insurance as well as GAP insurance to go with it, for cars over the £100K price tag, as we have clients who are regularly needing insurance for their sports cars and prestigious models. The Bateman Group specialise in high-value insurance as we understand that you need the peace of mind that we have an answer to your question as any time, and we are always here if you need us, and not to mentioned the expected level of intricacy when completing the insurance documents making sure you are covered from all angles, but translating everything to simple language that you understand.

Please note that the maximum value of the vehicle we can cover – including any deposit – is £150,000

There are a few versions of GAP Insurance, most common of which are listed below:

Vehicle replacement insurance (VRI) – This covers the difference between your comprehensive car insurance payout and the cost of getting a similar new car (same model/make).

Return to invoice (RTI) – This is the difference in the amount left between your car insurance payment and the original value of your car when you purchased it.

Return to value (RTV) – This covers the difference between your car insurance payment and the value of your vehicle when you took out GAP insurance.

It is best to discuss your options with a GAP insurance expert to make sure you are getting the right type of cover for your situation. Please get in touch with us or complete our online quotation form and we will ensure you are of the right cover for what you require and hold the level of protection you expect.

Let’s say that you paid £12,000 for your new car, and then in 3 years, it was written off. Your insurance company will only pay out around £6,000 as this is the ‘market value’ at the time. So you are left with either having to fork out the other £6,000 from your own pocket to get the same new car you bought previously, or to have to settle for a second-hand car for half the price you originally paid for yours. Having the right type fo GAP insurance will mean that you will get 2 payments to complete the full value of what you originally drove off the forecourt with, one from your car insurance at £6K and the other from your GAP insurance at £6K, leaving you happy to know that you can now buy the same brand new car you had before.

Yes, this is possible, however, it is not very common as a brand new vehicle will decrease in value much quicker and at a much higher rate in 3 years than a second-hand car would. This will also depend on the car that you own, as the higher priced car brands decrease in value much slower as they retain their market value for longer because of their badge, whereas the everyday run-around cars are much quicker to drop in price and much further over 3 years for example. So this would all depend on the type of second-hand car that you own, and the age of the vehicle. It is best to first discuss this with a GAP insurance expert. Please call us or complete our online quote forms and we can help give you the best options and expert advice on where your decisions should be placed.

We are able to provide most types of GAP Insurance packages in monthly instalments. Please don’t hesitate to get in touch with one of our insurance experts who will be able to advise on the best solution to ensure the full GAP protection of your motors. Please start an online quote at the top of the page or call us on 01926 495 113.