Finance and Contract Hire GAP covers the shortfall between your insurance provider’s payout and your outstanding finance settlement when you purchased your vehicle under a finance agreement.

Combined Return to Invoice (RTI) GAP covers the shortfall between your insurance provider’s payout and the invoice price you paid for your vehicle upon purchase, or it covers the shortfall between your insurance provider’s payout and your outstanding finance settlement if that settlement amount is greater than the original invoice price.

Insurance companies rarely pay out the full value of a vehicle or the full outstanding payments on a car loan when it’s declared a total loss. This means, without GAP insurance, you could end up paying finance instalments on a car you no longer have. Or, you might receive far less money than the vehicle’s worth at purchase, leaving you out of pocket when buying a new vehicle.   

Motor GAP insurance protects you against getting a much lower current market value back for your vehicle. 

The benefit will not be paid if:  

• Damage is caused when the vehicle is driven, with your consent, by someone who does not hold a valid driving licence or is in breach of the conditions of that driving licence 
• The incident occurred while the person in charge of the vehicle is convicted of driving under the influence of drink or drugs 
• The vehicle is against medical advice 
• Damage results from an intentional act from you 

The insurance also does not cover any liability for death, bodily injury, damage to any person or any other losses/expenses arising from the event.   

When taking out Motor Gap Insurance, you are obligated to disclose all important/relevant information. You must also take reasonable care to provide accurate answers to questions when you take out or change your policy.  

You also have a duty of fair presentation of the risk to us before the policy starts or when you make any amendments to your policy. 

Full details of what constitutes “fair presentation” and the consequences of breaching this duty are given in the Policy Document.  

You can cancel your policy within 30 days of the start date or, if later, within 30 days of the date you receive the Policy Document. We will refund any premium you have paid if you have not made a claim and do not intend to make a claim.

You can also cancel your policy at any other time and receive a pro-rata refund of your premium based on the number of whole months of the original insurance period remaining, subject to an administration fee charged by the administrator of £34.99.

If you cancel your policy with less than 6 months remaining, there will be no return of premium.

You need to check with your standard motor insurance to find out their policy. You can read the full policy document with detailed coverage and exclusion information.