Guaranteed Asset Protection (GAP) Insurance Quote
What is GAP Insurance?
Guaranteed Asset Protection (GAP) Insurance is a product which is designed to protect you against financial loss if your vehicle is declared a total loss by your insurer following an accident, fire or theft.
In the event that your vehicle is written off (damaged beyond economic repair) by your insurance company, there could be a ‘Gap’ between the market value at the time and the amount owed on the car. GAP insurance covers the monetary difference between the amount paid by the insurer in the event of a total loss and the amount owed on the finance settlement.
How it works
The GAP policy is designed to work alongside your motor insurance policy so if your vehicle is declared a total loss or stolen your insurer will normally pay the current market value of the vehicle at the time the loss is incurred. For newer models the market value depreciates very quickly and is almost certainly going to be less than the amount owing on any finance agreement, which leaves a shortfall to pay – the GAP policy is designed to insure the sum between the 2 figures.
How GAP Insurance works
GAP Insurance pays the difference between your car’s value and its current market value if it’s stolen or written off.
Gap Insurance Example
You purchase a new Mercedes-Benz A200 at £30,000. Within the first 12 months the vehicle is stolen, the market value of the vehicle at the time of the theft being £20,000 – so far you have paid off £4800 of the £30,000 leaving your exposure on the finance agreement at £25,200 – once the insurers have agreed the settlement amount for the vehicle value at £20,000 you would be left with a balance outstanding on the finance agreement of £5200. In this example the GAP policy would pay the difference left to pay between the vehicle valuation on the day of the loss and the amount owed on the finance agreement, leaving the policyholder with no financial loss or liability on the finance agreement. Without the GAP insurance in place that £5200 balance would be payable to the finance company by the customer.
Why choose GAP
Car Theft – Car thefts in the UK are at an all time high, according to data released by RAC car thefts in the UK have risen by 56% in the past 4 years.
Accident – With vehicle repair costs soaring all the time, the cost of claims is ever increasing and as such increasing the likelihood of a vehicle involved in an accident being declared beyond economic repair.
Fire – according to fireservice firesafety, every year in the UK over 100,000 cars (approx. 300 a day) go up in flames, around 65% of these fires are started deliberately or as an act of vandalism.
Customer service is our culture. A business with integrity, Riviera Insurance is your local broker specialising in a variety of insurance products.
What is GAP Insurance?
GAP insurance (or it’s official term, Guaranteed Asset Protection) is an insurance policy that protects you when you make an insurance claim but you receive a payout that’s less than the cost/ value of the car when you bought it. To put it simply, it will pay you the difference so you don’t lose money.
It is often associated with brand new cars, but GAP insurance can also be taken out on used models too.
Cars depreciate very quickly and by a substantial amount. Up to 77% of the value of a brand-new vehicle can vanish over a 3-year period! Some used cars can even depreciate by 20% in the first 6 months! GAP Insurance attempts to provide some much needed peace of mind that you will ‘get back what you put in’ with your car in the unfortunate event of an accident.
What is insured?
The difference between the amount your motor insurer pays you and the amount you originally paid for the vehicle (or the balance owed under a finance agreement, if this greater)
a hire vehicle (of a similar size to your insured vehicle) for up to 28 days while you are awaiting settlement of your claim.
Why Choose Riviera Insurance?
At Riviera Insurance we like to think outside the box, to ensure your policy meets not only your needs but also the needs of your property. We are also experienced in dealing with everything from car insurance to GAP insurance and we know about the risks that can arise, as such we can help advise you around the available cover and take the time to ensure we provide you with peace of mind.
Over 75 years experience
24/7 claim service
Excellent Service Levels
Flexible Payment Plans
Quick Turnaround Times
UK Based Office, not a Call Centre
What Makes Riviera Different?
Over 75 Years’ Experience
in the insurance arena
up to £150,000
an array of A-Rated insurers based in the UK
UK Wide Cover
coverage for the entire United Kingdom
What is not covered?
Taxis, driving school vehicles, chauffeur or courier vehicles (unless specifically agreed by us)
Kit cars, invalid carriages, commercial vehicles in excess of 3,500kg gross vehicle weight
American, Australian or Canadian vehicles not built for the UK market
Competitions or rallies, track days, racing, pace making, speed testing, reliability trials or off-road use
Carriage of goods or passengers for hire or reward or solely for delivery or courier purposes
Driving tuition (unless specifically agreed by us)
Short-term self-drive hire
Are there any restirictions?
The net invoice selling price must not exceed £150,000
The incident leading to the total loss must occur within the territorial limits and during the period of insurance
The maximum the insurer will pay for any one claim will not exceed the amount shown in your policy schedule
If you sell your vehicle and have not made a claim under this insurance, you may transfer the remaining cover to the new vehicle, subject to our agreement. Where the purchase price of the replacement vehicle is greater than the purchase price of the original vehicle, an additional premium may be required. Cover will not include any re-financing