Can GAP Insurance cover Company Cars?

Yes, GAP Insurance can often cover company cars, but the type of cover depends on who owns the vehicle and how it is funded. Vehicles purchased outright, leased or financed by the business can qualify for and benefit from GAP Insurance. It is crucial to select the right cover and make sure the eligibility criteria are met.

When eligible · When not eligible · Which policy applies · Related links

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When company cars are eligible

Business-owned cars: Vehicles purchased outright by a company can often be covered under Return to Invoice or Vehicle Replacement GAP.
Leased company cars: Cars leased or on contract hire may qualify for Lease/Contract Hire GAP to cover termination charges.
Finance agreements: Cars bought on HP or PCP through a business are usually eligible for Finance GAP.
Where the motor insurance is in the name of the business and the vehicle is covered for the market value in the event of a write off or theft.

When they may not qualify

Pool cars: Vehicles used by multiple drivers (pool cars) without a single keeper may be excluded.
Fleet vehicles: Large fleets may not be eligible under standard GAP and may require specialist fleet cover.
Heavy commercial vehicles: Vans or trucks above 3,500kg GVW are usually not covered.
Delivery vehicles: Vehicles used for 'hire and reward', charge for delivery, etc, will typically be excluded
Motor trade use: Vehicles used in conjunction with the motor trade are usually universally excluded. This includes body shop, courtesy cars, etc.

Which GAP policy applies

Return to Invoice GAP: For company cars purchased outright or on finance. The vehicle and finance must be in the business name.
Vehicle Replacement GAP: For businesses that want to cover rising replacement costs. Again, the vehicle and any finance should be in the name of the business.
Lease/Contract Hire GAP: For leased company cars to cover early termination charges, if the vehicle is written off or stolen. The lease should be in the name of the business.

Tip: If you’re arranging GAP Insurance for a company car, check you meet the eligibility criteria to ensure the vehicle is insured correctly.