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.
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.
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.
You are eligible, provided that:
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.
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.
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;
For further details please refer to the relevant section of the Total Loss GAP Terms and Conditions available from Sturgess.