Why should you consider Gap Insurance for your car, van or bike?
The basic concept of gap insurance is relatively straightforward - your car, bike or van is worth to you what you paid for it. Perhaps it's on finance, maybe on HP or a PCP and it is comprehensively insured by your own insurance company. However, the value of your car, van or bike begins to fall as soon as you drive it off the dealer's forecourt ('depreciation'). If you're unlucky enough to make an insurance claim and in the event that the vehicle is declared a write-off by your insurance company, (known in the trade as a 'total loss') during the term of the gap insurance policy, depending upon the type of cover you have purchased, gap insurance will pay you the difference between what you paid for the car originally and what your insurance company offers you for the vehicle.
In a nutshell, gap insurance gives you back the price you paid for the vehicle.
Are there different types of gap insurance?
There are a couple of different types of gap insurance. One type is commonly known as 'Return to Invoice Gap Insurance' or RTI gap insurance and this provides an insurance pay-out that fills the financial gap between the total loss valuation given by your vehicle's insurance company and the amount that you originally paid for the vehicle and which is shown on the original purchase invoice - hence 'return to invoice gap insurance'.
This type of cover gives you a cash amount from which you then settle the finance agreement you might have for the purchase of the car, van or bike.
Financial Shortfall Insurance for vehicles on finance - HP or PCP
Financial shortfall insurance (or 'Vehicle Replacement Gap Insurance') is worth considering if you have bought your car on finance. In the event of a write-off and if the finance company's settlement figure is higher than your vehicle's original purchase (i.e. invoice) price, this type of policy will cover either the amount you owe on finance, the original invoice price or the cost of buying a replacement car, van or bike - whichever is the highest.
Can you insure expensive cars for gap insurance?
Typically there is a limit of £75,000 for the total invoice value, although higher values might be possible, subject to referral to underwriters.
I'm in the process of buying a car - can I get a quote straightaway?
Filling in our 'Get a Quote' form will instantly submit your details to our partner insurance brokers who specialise in offering quotes for gap insurance and they will usually contact you the same day to ask you for the details of your car, van or bike.
How long do I have to apply for gap insurance?
To qualify for a gap insurance quote through QuoteRack, you must have purchased your car, van or bike from a VAT-registered dealer within the past 90 days. Vehicles purchased privately are not available for cover.
What age of car can be covered for gap insurance?
Your car, van or bike must be no more than 10 years old at the point you request gap insurance cover.
Are there any other restrictions?
All quotes are subject to confirmation by the insurance broker prior to cover being offered and purchased. You must be aged 18 years or older and cover cannot be backdated.
How do I get a quote for gap insurance?
Complete the simple online form by clicking the Get a Quote button and insurance brokers who specialise in providing gap insurance quotes will be in touch with you straightaway.