Why Choose GAP Insurance?

Most vehicle owners don't realise it, and it may be that you are one of them, but if your vehicle is declared a total loss by your motor insurer they will only settle at its current market value, even where you have purchased fully comprehensive insurance.

This leaves you with an amount that is likely to be significantly less than the amount you originally paid for your vehicle. Even more significant is the possibility that your insurance settlement is not enough to cover any outstanding finance you may have, not only leaving you without a vehicle but with you paying finance on a vehicle you no longer have.

The good news is this doesn’t have to be the case. You can avoid the financial shortfall that you would otherwise be left with by purchasing a GAP Insurance policy from Asset Secure and ensuring you have protected your investment.

 

Why buy a policy from Asset Secure rather than other online companies?

They can include clauses that restrict payment based on the market value or Glass's Guide retail value of the vehicle and leave you with a shortfall. Asset Secure doesn't include either of these clauses and guarantees to pay the difference between your insurance company's settlement and the amount you originally paid for your vehicle.

Asset Secure is a UK Company, fully authorised and regulated by the FCA. We use a number of underwriters and all of our policies are fully protected by the Financial Services Compensation Scheme.

GAP Plus Policy

Our GAP Plus Policy can be bought for a vehicle that you either purchased outright or purchased fully or partly using finance.

If your vehicle is written off by your insurer then this policy will either

• Pay the difference between your insurance company's market value settlement and the amount you originally paid for the vehicle or
• Clear the full balance of outstanding finance - whichever is the higher amount.

For example - a vehicle purchased for £30,000 with £5000 finance interest would leave an outstanding balance of £35,000 if the vehicle was written off soon after purchase. In this instance if your comprehensive insurer settles at £28,000 this would leave £7,000 outstanding to the finance company and our settlement would therefore be £7,000.

If your vehicle was written off or stolen towards the end of the three years its value would be significantly lower but the amount of finance remaining would be minimal. If the insurance company paid out £15,000 Asset Secure would pay the extra £15,000 to take you back to original invoice price of £30,000, as this figure would be the higher amount in comparison to the outstanding finance amount.

If instead you bought your vehicle outright and did not have any finance, the second example would apply to you. Asset Secure would merely fill any financial gap left after you receive a payment from your motor insurance company.

More information on GAP Insurance

Buying a GAP Insurance policy depends on the circumstances surrounding your vehicle purchase and there are a number of factors you should consider.

• Is my car less than 8 years old at the point I purchased it?
• Is my Motor Insurance Fully Comprehensive?
• Will I be using my car for Hire and Reward (taxiing, food delivery, paid rental of the vehicle to somebody else for their use) off road use (rallying, speed testing, pace making)?

 

1. Should I get GAP Insurance?

If your vehicle is written off or stolen, GAP insurance will make up the shortfall between the market value and what was originally paid. Protecting you from being out of pocket. Comprehensive car insurance will in some cases replace a car bought from brand new if it is written off within its first year. Check the terms and conditions thoroughly to ensure there are no exceptions or exclusions to this cover, and that you’re not looking at a financial shortfall should the worst happen

 

 

 

2. How much does GAP Insurance cost?

The price you pay is dependant on the vehicle value at the point of purchase, the maximum benefit payable under the policy you select and the duration of the policy.

 

 

 

3. How does GAP Insurance work?

GAP Insurance refers to the difference between what you paid for the car originally, and what the Insurance policy will payout in the event of a total loss incident occurring during the period of cover.
You should be aware that are things that GAP Insurance doesn't cover; these exclusions include personal injury or death, damage to property, repairs to the vehicle, repossession, courtesy cars, negative equity brought forward from a previous finance agreement and any extended warranties, maintenance plans or Insurance premiums that have been included on the invoice in addition to the price you paid for the car.

 

 

 

4. What is excluded from GAP Insurance?

The most important exemption is always in place and counts against those who do not have a comprehensive car insurance policy in place. Before you even consider GAP Insurance, you should ensure that you have the right level of comprehensive car insurance in place.

• Claims, where your car insurer fails to declare that your car is at a total loss, are not applicable.
• GAP Insurance is for normal road-legal driving.
• If you have modified your car - anything that may have added any value.