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What is defined as a 'total loss' or a 'write off'?

What is included when buying Gap Insurance?

The term 'total loss' is used to describe the point at which your own insurance company decide that they will make you a financial offer in replacement of your vehicle. The moment that you accept their offer you lose legal rights to your old vehicle and instead they pass to your insurance company, but does this include theft?

Gap Insurance is simply an additional policy that runs alongside your own motor insurance and therefore, there are a million and one different scenarios in which your vehicle may be declared a total loss. The most common occurences can be theft or in an accident for example. On the other side of the scale, vehicles have been declared a total loss through hailstone damage.

We don't list each and every circumstance within the policy because of the sheer number of different circumstances. As there are so many ways that this can happen it is exceptionally difficult to list them all and even if we tried we are likely to miss some sort of scenario. 

Rather than attempt to list the reasons, our policy covers this in a blanket term.

'In the event of Your Vehicle being declared a Total Loss, providing Your own Motor Insurance company have agreed to give full indemnity for Your claim.'

Combined Return to Invoice & Vehicle Replacement Gap Insurance | Contract Hire & Lease Hire Gap Insurance - September 2017

Simply put, this means that in many respects it doesn't matter how the vehicle is declared a total loss, the most important aspect is that your own motor insurance company have looked at your claim and decided that it is valid and agreed to settle. 

Please remember that your Gap Insurance policy will only come into force, when and if, the vehicle is declared a total loss. Equally, we never decide whether the vehicle is declared a total loss or not, instead it is always your own motor insurance company and they are the only ones who can make this decision. 

This means that your own motor insurance company have made the choice to either not repair your vehicle or in the case of theft, have decided that there is no hope of it being recovered. At this point your insurance company will write to you and make you a financial offer. This offer must be fair and must equate to the current market value of your vehicle on the day of the incident. 

Please remember that at this point our claims team will jump in. They will, with your permission, talk directly to your own motor insurance company and agree a fair settlement regardless of current book or market values. They will then manage the claim from that point moving forward and make payments as soon as possible. 

We hope that your vehicle is never declared a total loss and instead we sincerely hope that you have many happy years of motoring, however, you can rest assured that should it ever happen, we will be here to help each and every step of the way.