GAP Insurance

How well protected are you against loss?

If your vehicle becomes a total loss, which means it has been written off or stolen, even if you have comprehensive Motor Insurance cover your Motor Insurance may only pay, hopefully, the current market value at the time of the write-off - which is very likely to be less than you originally paid for your vehicle.

So you may have a problem - the difference between the Motor Insurer's payout and the cost of a replacement vehicle. A gap that can leave you seriously out of pocket!

For example, if your vehicle costing £15,000 is written off after 2 years, the Motor Insurer may only pay out the current market value, which might only be £9,000. This will leave a gap of £6,000 - making it difficult for you to replace your vehicle with an equivalent replacement model.

Total Loss Gap Protection

Our Total Loss GAP Protection could cover the shortfall when your vehicle is written off, by covering the difference between your Motor Insurer's pay out (or Glass's Guide value – whichever is the greater) and the Net Invoice Price you paid for your vehicle up to a minimum set out in the Terms and Conditions.

Conditions of cover

Total Loss GAP Protection is available for any new or used car or van. It's easy to take out, providing up to four year's cover.

Am I Eligible?

You are eligible, provided that:

• You are covered by a fully comprehensive UK motor insurance policy.
• Your vehicle net invoice price does not exceed the value stated in the Terms and Conditions.
• Available products are: Total Loss Gap £15,000, £25,000, £40,000, £75,000 and £100,000.
• Finance gap is also available, which covers any finance shortfall of up to £10,000.
• Your vehicle is listed in Glass’s Guide (Industry standard vehicle price guide) and is used principally in the United Kingdom.

Period of Insurance

Cover under this Policy lasts until the earliest of the following:

a) Maximum 24, 36 or 48 months from the Start Date (dependent on the policy taken), or;
b) The date on which the Insured Vehicle is sold or transferred to a new owner, or;
c) The date a claim is paid in respect of the Insured Vehicle under this Policy.

Please note that this Policy cannot be renewed.

Benefits and Significant Features

In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance the Insurer agrees to pay the Insured the amount by which the Net Invoice Price exceeds the Insured Value The total benefit payable under this Policy shall not exceed the value stated in the Terms & Conditions.

Significant and Unusual Exclusions

• If you decline the offer of a replacement vehicle under the terms of your Motor Insurance then the Insurer reserves the right to settle the claim using the cost of a brand new replacement vehicle as at the Date of Loss by reference to Glass’s Guide as the Insured Value. If you decline the offer of a replacement vehicle then this may result in no benefit being paid to you in the event of a Total Loss.
• The Policy is not transferable to any subsequent owner of the Insured Vehicle or to any other vehicle.
• If any Negative Equity (outstanding finance/debt) is carried over from a previous vehicle this will be excluded.
• If the Insured Vehicle is stolen by any person who has access to the keys of the Insured Vehicle.
• In respect of any Total Loss which occurs while the Insured Vehicle is being used for:

a) Pacemaking, racing, speed testing or reliability trials;
b) Commercial business use of hire and reward including and not limited to taxi, courier services and private hire;
c) An emergency vehicle; or is being driven by any person not holding a valid current licence to drive the Insured Vehicle;

• In respect of any Total Loss by accident when the driver of the Insured Vehicle is intoxicated by alcohol or under the influence of drugs not prescribed by a registered medical practitioner;
• Unless you cancel the policy within 14 days from the Start Date of the Policy you will not be entitled to any refund of Premium thereafter.

For further details please refer to the relevant section of the Total Loss GAP Terms and Conditions available from Sturgess.