Got an account? Login to retrieve an existing quote
ONLINE OFFER - Buy online to save 11% using code DECEMBERGAP
What is GAP Insurance?
GAP Insurance, or guaranteed asset protection, shields you from financial loss if your vehicle is declared a write-off by your car insurer due to accidents, theft, or damage from events like floods or fires.
Typically, insurers will only pay you the value of the vehicle at the time of the incident, rather than what you originally paid. Because cars can depreciate approximately up to 60% in the first three years, that could mean a significant shortfall in finance settlement charges or a loss in vehicle value. MotorEasy’s GAP Insurance bridges the gap between your insurance payout and your vehicle’s purchase price or outstanding finance.
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
New and used cars purchased more than 6 months ago from a private seller
RTV GAP Insurance covers the difference between your insurer’s payout, based on current value, and the original value, based on your GAP Insurance start date
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.
Finance GAP Insurance - often packaged with other types of GAP Insurance, finance GAP will cover the fees owed on a finance vehicle in the event of a write-off. View your Finance 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.
Shortfall insurance is just another term used for GAP Insurance - insurance that bridges the gap between your car insurance payout and vehicle value in the event of a write-off or your car is stolen.
What is and is not covered by GAP Insurance will vary depending on the type of GAP Insurance you choose, however, there are several common exclusions with all GAP policies:
Before purchasing GAP Insurance, make sure you have the right type of car insurance. A comprehensive insurance policy is needed with all GAP coverage
If your vehicle isn’t a write-off or total loss, you won’t be covered with GAP Insurance
GAP Insurance covers “normal road driving” with cars that haven’t been modified - competitive driving, modifying a car and other exceptions may apply
Please enter the 6 digit code sent to the below . The code will be valid for 10 minutes.
Confirmation
Arrange Callback
Thank you
Our team is here to help with your car. Simply complete the information below and a representative will contact you.
Thank you, a member of the MotorEasy team will contact you.
We will aim to contact you within 24 hours of your call back request. Please send us a message via the ‘mail’ in your MotorEasy account if you have any further information to provide.
