What is GAP Insurance?
Also known as Guaranteed Asset Protection, GAP insurance covers the difference between the amount you paid for your car and the amount that an insurer will pay out for it in the event that your vehicle is written off or stolen.
This difference is known as depreciation, which is when your vehicles value decreases over time.
In the first year of owning your vehicle you can expect the value drop by 15-35%, and by five years it can drop by as much as 70%. So, let’s say you buy a vehicle for £20,000 and a year later it’s written off but the value has depreciated by 25%, then the market value is £15,000 and you will lose out on £5,000.
With GAP Insurance, you would be covered for the £5,000 difference.
Why choose One Call?
We know your hard-earned money is important to you, so we don’t want you to lose out!
As standard, GAP insurance from One Call will include…
- Cover for factory fitted options – ensures you won’t be out of pocket or end up with a lower spec car
- No excess to pay out
- Return to invoice – get paid the difference between what your motor insurance will pay out at the time of the claim and what you actually paid to buy the vehicle.
- Vehicle replacement - cover the difference between the amount that your car insurance would pay out and the price of a brand new version of your car at the time.
- Contract hire – also known as Lease GAP insurance, this would help you to pay for the rest of your vehicle lease contract plus any fees that might arise from cancelling your agreement early.
- Agreed value – this type of GAP insurance will cover the difference between how much an insurer will pay out and the value of the vehicle at the time of purchasing the policy, making it ideal for second-hand cars.
- Finance cover – similar to contract hire, this is designed to cover any outstanding debts if the insurance isn’t as much as the remaining finance payments.
- Confirm with your motor insurance provider what settlement they will offer
- Gather all of the relevant information needed for your claim (this will help speed the process)
- Call us 0330 2020 660 within 30 days of the incident, quoting ‘combined GAP insurance’ and providing as much information as you can about the claim.
What types of GAP insurance are there?
Do I need GAP Insurance?
It’s a well-known fact that a vehicle, especially when it’s new, will depreciate in value very quickly, meaning that if your car is written-off or stolen then your insurer will only pay-out the value of your vehicle at the time of making the claim.
If you don’t want to lose out on what you paid, are looking for a pay-out that will cover your outstanding lease/finance payments, or simply want to guarantee that your new car will be just as good as your existing car, then GAP insurance could be for you.
What should I consider?
Your GAP insurance will run alongside, but is separate to, your motor insurance policy and is therefore an extra cost. Here at One Call, we offer the ability to spread it across 12 monthly payments.
GAP insurance policies have exclusions, such as the vehicles age or the circumstances of the vehicle being written off (for example, if the driver was under the influence of alcohol/drugs, or the vehicle was used in any sort of competition/rally). So, it’s important to thoroughly check the terms and conditions of your GAP insurance policy.
If your car is under 12 months old then your insurer may include new vehicle replacement cover, meaning you wouldn’t need GAP insurance, so be sure to check what your insurer offers if your car less than a year old.
How do I claim?
If you choose to take our GAP insurance with One Call and need to make a claim, it couldn’t be easier:
One Call Insurance introduces business to Complectus. When you take out a policy with Complectus we will receive a commission for the introduction to them. This could be a percentage of the premium or a fixed fee depending on the cover taken. If you have any issues with the cover you have purchased via Complectus please contact them directly.