Guaranteed Asset Protection (GAP)

Buying a car is one of the largest purchases you may make during your lifetime, yet it is also one of the most vulnerable of all your investments. Car crime, insurance write-offs and depreciation are all hazards of modern motoring. Your insurance company may be able to cover most of the damage, but who will pay for your outstanding finance payments? Who will pay for the difference between your insurance company’s pay out and the original price you paid for your vehicle?

Combined GAP could pay out the greater of either the amount by which the purchase price exceeds the insured value or the amount (if any) by which the settlement figure exceeds the insured value, to the finance company.

Which one is best for me?

Combined GAP
This could pay out the greater of either the amount by which the purchase price exceeds the insured value or the amount (if any) by which the settlement figure exceeds the insured value, to the finance company

Finance GAP
This could pay the financial shortfall between the amount you receive from the motor Insurance Policy and the outstanding settlement value on your finance agreement (including negative equity carried forward from a previous finance agreement up to the amount shown in your policy schedule)
Both policies are subject to terms and conditions.

With Combined GAP, you can be covered for difference between the insured value and either the invoice price (Return to Invoice) or outstanding finance settlement (Financial Shortfall), whichever is greater.

Return to Invoice

Available for up to a maximum of 36 months from the policy start date. The amount by which the purchase price exceeds the sum paid under the comprehensive motor insurance to you. The purchase price is the amount paid to purchase the insured vehicle including any factory fitted options, dealer fitted accessories, and VAT if applicable and you cannot reclaim it. For new vehicles only, this will include road fund licence, delivery charges, number plates and the first registration fee

OR

Financial Shortfall

Available for up to a maximum of 60 months from the policy start date. The amount (if any) by which the settlement figure including credit arrangement fees exceeds the sum paid under the comprehensive motor insurance.

Guaranteed Asset Protection (Combined GAP) Insurance

A total loss need not be a total disaster. If your car is stolen or written-off, Combined GAP will pay the greater of either the amount by which the purchase price exceeds the insured value, to you or the amount (if any) by which the settlement figure exceeds the insured value, to the finance company.

Is there a maximum amount GAP will pay?

Yes, The original purchase price of the car is the maximum amount GAP will pay.

Can you give an example of how Combined GAP Insurance works?

Finance GAP Insurance

A vehicle is purchased for £18,335. 15 months later the vehicle is written off. The motor insurer settles £11,250 but the customer still owes the Lease or Finance company £13,175. The GAP policy will pay the £1,925 shortfall direct to the Lease or Finance Company so that the agreement can be closed.

Return to Invoice

In this scenario if you purchased a vehicle for £15,000 and paid cash and the vehicle was later written off with a settlement figure of £12,750 from your motor insurers the policy would reimburse the shortfall amount of £2,250 to allow you to replace the vehicle with the same specification as the original.
Subject to Terms and Conditions

Significant Exclusions

•If the insured vehicle is not covered by comprehensive motor insurance at the date of loss.
•If the insured vehicle does not meet the eligibility criteria, found in the policy wording
•If you or anyone insured to drive the insured vehicle is deemed to have been driving without a valid licence, is under the influence of alcohol or drugs, or is driving whilst disqualified.

For any finance or outstanding debt and resulting interest due on or carried across to your insured vehicle from previous finance agreements (if any). For any motor insurance excess above £250, or if the motor insurance excess is recoverable from a third party. Can it be transferred if I sell the vehicle? Unfortunately not, the insurance only covers the person or company who paid for the insurance whilst the car is under their ownership.

What is the maximum term I can have?

The Return to Invoice Benefit in available for a maximum of 36 months and the Financial; Shortfall benefit for a maximum of 60 months from the starting date; subject to the duration of your agreement (if any).

Finance GAP Insurance

If your car is declared a Total Loss, Finance GAP will pay the financial shortfall between the amount you receive from the Motor Insurance Policy and the outstanding settlement on your Finance Agreement. (Subject to terms and conditions)

Is there a maximum amount Finance GAP will pay?

Customers can select a claim limit to suit the cost of their vehicle. Claims limits from £5,000 to £30,000 are available.

Can you give me an example of how Finance GAP works?

A vehicle is purchased for £18,335. 15 months later the vehicle is written off. The motor insurer settles £11,250 but the customer still owes the Lease or Finance company £13,175. The GAP policy will pay the £1,925 shortfall direct to the Lease or Finance Company so that the agreement can be closed

Can it be transferred if I sell the vehicle?

The remainder of the policy can be transferred in the event of the vehicle being sold or deemed a total loss, provided the customer has not made a claim, subject to terms and conditions.

How long will Finance GAP cover last?

Cover is available for up to three years (depending on premium paid), or when you sell the vehicle, whichever is the sooner but will cease earlier upon the occurrence of any of the following events: a paid claim or the repossession of the insured vehicle if subject to a credit agreement.

Significant Exclusions

• Any total loss when the Total loss occurred before the inception of this insurance..
• Vehicles used for hire or reward, taxi’s, racing, pacemaking, speed testing, reliability trials, rallying, vehicles used for any other event or over 3500kgs gross vehicle mass.
• Any Total Loss which is not subject of an indemnity settlement under the accidental damage, fire or theft sections of a Motor Insurance Policy.
• Where there is Negative Equity included within your finance value any Negative Equity exceeding £2500 will be deducted from the settlement figure.
• Where you have failed to notify the transfer or where the Vehicle transfer has been rejected.
• Any loss for additional purchases at the time of purchase of the Vehicle including but not limited to; road fund licenence, administration charges, insurance premiums including the policy and optional extras – cars mats, CD players, etc


Sparshatts of Botley Limited, Sparshatts of Fareham Limited and Cars of Swanwick Limited are appointed representatives of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486) and which is permitted to advise on and arrange general insurance contracts.

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