Featured within the Which? Report on Gap Insurance.
Protected by the Financial Services Compensation Scheme.
What is Return to Invoice Gap Insurance and how does it work with Total Loss Gap?
Due to depreciation, your vehicle will be worth a lot less than the price you have paid as the years go on. In fact, the average vehicle may lose as much as 50% over a three-year term, with some particular models losing more.
If you have recently purchased a vehicle, you may have been offered Gap Insurance during the purchase process. Back to Invoice, Invoice plus and Return to Invoice is usually the type of GAP protection offered to you at that stage. However, if you carry out some research, you will find that there are more forms of GAP for you to consider.
Total Loss Gap gives you a choice.
You can opt for our Total Loss Gap Combined Invoice and Replacement GAP. This can cover you to the HIGHER of either the replacement cost at the time you claim or the original invoice price you paid. This is our premier policy, and takes away the choice between taking a Return to Invoice cover or Vehicle Replacement GAP. The policy gives you the best outcome between the two.
We do offer a second option.
If you like the idea of a simple Return to Invoice policy then we (from August 2020) can offer that to you as well. Similar to our premier product, other than not having the replacement element of cover, you still have unlimited cover between your motor insurers settlement back to the original invoice price you paid for the vehicle.
We now know about Return to Invoice, but what are the other types of insurance?
There are two other options, the first being the most basic form of protection. This one is simply designed for you to clear any outstanding finance and you walk away with no liability. But, you walk away with nothing. The other level of cover, is the most comprehensive type, rather than you being returned to the invoice price you have paid for the vehicle, instead, we top you back up to the cost of a 'like for like' replacement vehicle at that moment in time. If you purchased a brand new vehicle, the settlement will be based on another brand new vehicle, which due to inflation and changes in exchange rates, etc, is likely to be more than the price you originally paid.
How is Total Loss Gap different to other policies?
With Total Loss Gap Combined Invoice and Replacement GAP, we combine all three different types and which settlement is the highest at the point of total loss is the settlement figure we would use. This means that at the very least, we guarantee to return you to the original invoice price you have paid for the vehicle as Return to Invoice Gap Insurance would do. However, the cost of a replacement vehicle may have since increased, resulting in the settlement being higher than the original invoice price you have paid. If you have any outstanding finance attached to the vehicle, within any settlement the finance is cleared and the equity and balance left over is yours to do with as you wish.
If you don't have the option to own your vehicle and instead it's on a lease agreement or contract hire agreement where you hand the vehicle back it the end, the policy will perform differently. If this is the case, click here to find out how Lease Gap Insurance can work for you, alternatively click to Get a Quote and read the how it works section on the quote page.
Your policy is fully FCA regulated and backed by the Financial Services Compensation Scheme.
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