Many motorists don’t consider the reality of a write-off to their vehicle. Even the finest insurers will only reimburse you for the current market value of your car. Meanwhile, the second you drive it off the forecourt a car’s value begins to depreciate.
A GAP Insurance policy tops up an insurance payout in the event of a write-off, providing you with the extra funds to purchase a replacement vehicle or to settle any outstanding finance.
RTI / RTV GAP Insurance cover available for all cars up to 10 years old and 100,000 miles
Contract Hire / Lease GAP Insurance cover available for all cars up to 8 years old and 80,000 miles
Our GAP Insurance covers write-offs due to:
GAP Insurance for all situations:
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
GAP Insurance or guaranteed asset protection covers you against financial loss if your vehicle has been declared a total loss or a write off by your car insurer.
If your car is involved in an accident, stolen or damaged by flood or fire, and considered a total loss, your insurer will only pay the market value for your vehicle at the time of the incident.
On average, a car loses around 60% of its value in the first three years, leaving you exposed to a shortfall of thousands of pounds on any remaining finance settlement charges or a substantial loss suffered from the vehicle value depreciation.
This can be avoided with MotorEasy GAP Insurance, which bridges the GAP between the value your insurance company will give you for your vehicle and what you paid for it, or owe in finance, depending on the type of GAP Insurance you take out.
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.
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 £1000 towards your insurance excess.