Gap or Guaranteed Asset Protection Insurance is something that many people do not consider when purchasing a new vehicle. However, this policy could save you a lot of money in the event of a bad incident. This is whether they have paid for the vehicle upfront or it is on lease or finance.
After the home, a vehicle is quite often the most valuable asset owned. But what happens if that vehicle is written off following an accident and the motor insurer’s settlement doesn’t cover the replacement cost? Whether the reason is that the car has simply decreased in value or the amount paid out by the insurers doesn’t cover any outstanding finance, GAP insurance is the answer.
You receive and are covered for the difference between the insurance pay out and the cost of your finance, lease or contract hire settlement.
Return to Invoice (RTI)
This is where the difference between the insurance pay out received and the price you paid for the car or van is covered.
Replacement Vehicle Insurance (RVI)
This covers the difference between the insurance pay out and the cost of a similar vehicle at the point you first purchased it.