What is GAP?

In the event of a vehicle being stolen and not recovered or in an accident and declared a total loss, few customers will receive a motor insurance pay out equivalent to the original purchase price from their motor insurer. GAP is important as vehicles depreciate overtime and average figures suggest that a 2-year-old vehicle would be worth about 65% of its original value, a 3-year-old vehicle 45% - 50% and for 4 years its value could drop to 35%-45% (these may vary depending on vehicle make and model). Your insurer will value your vehicle in line with the depreciation.

Gap insurance covers the difference between your insurance settlement at the point your vehicle is written off or declared a total loss and the purchase price of your vehicle when you bought it. The implications of having a total loss:

  • You may still have a sizeable outstanding liability on your financing commitments
  • You may have to make do with a lower specification replacement vehicle as the insurance settlement figure will be based on the value of vehicle on the date of your total loss

What type of GAP cover is best for you?

Get an instant GAP Quote
For New vehicles that have been purchased within 180 days from a Dealership or Garage.

Here's an example

If your car is declared a total loss by your motor insurer, your insurer will offer you a final settlement based on the vehicle’s value on the day of the accident.

As we know there is likely to be a depreciation on your vehicle, therefore is it very unlikely to be the amount that you paid for the vehicle.

Covers New and Used Cars, Motorcycles and Vans(up to 3.5T)

Policies from 1 to 5 years

30 Day Money Back Guarantee

Covers up to £1500 of Factory Fitted Optional Extras

Variable benefit levels

Covers Insurance Excess Up To £250

Covers All Drivers on your Insurance Policy

Settles Finance agreements

What are the different types of GAP?

Combined Return to Invoice GAP

Combined Return to Invoice GAP is available for all classes of the approved vehicles and, for the majority, can be taken out for 1, 2, 3, or 4 year policy terms; however, for taxis cover is available for 3 years. vehicle specific options will be displayed when you obtain a quotation to assist you in choosing the right product and a suitable benefit level.

In the event of your vehicle being declared a total loss:

  • it can pay the difference between either the vehicle insurance settlement and the invoice price paid for your vehicle; or
  • if you purchased your vehicle under a finance agreement (includes all major forms of Finance, Contract Hire and Lease) and the early settlement amount is greater than the original invoice price, it can pay the difference between the vehicle insurance settlement and the early settlement amount.

Cover will include up to a maximum of £250 of your vehicle insurance policy excess.

The maximum amount paid is restricted to the claim limit you choose and is shown in your Policy Schedule.

Options will be displayed when you obtain a quotation, to assist you in choosing a suitable benefit.

Cash Purchase Example

Vehicle cost is £20,000 and your insurer pays out £12,000 then the GAP pays £8,000 so you get the full £20,000 back
(subject to the cover selected)

Contract Hire/Finance GAP

Contract Hire and Lease pays the difference between your motor insurers settlement and any outstanding rental/lease payments you may have. This policy is for you if you hire or lease a vehicle and you can take an option of covering any upfront lease or rental payments up to £3000.00.

In the event of your a vehicle being declared a total loss, it can pay the difference between the early settlement amount and the vehicle insurance settlement.
Cover will include up to a maximum of £250 of your a vehicle insurance excess.
The maximum amount paid is restricted to the claim limit you choose and is shown in your Policy Schedule.
Options will be displayed when you obtain a quotation to assist you in choosing a suitable benefit.

Finance Purchase Example

Vehicle cost is £20,000 bought on a finance agreement but with interest payments you were going to be paying back £24,000. At the point of loss your main insurer settlement figure is £17,000 and you still owe £21,000 on finance, so the £4,000 shortfall would be covered if you have bought Contract Hire and Lease GAP (subject to the cover you selected). To be clear though, this GAP policy settles the finance liability and not the purchase price of your a vehicle, therefore, if you wish to cover the purchase price you should look to Combined Return to Invoice GAP.

Get an instant GAP Quote
For New vehicles that have been purchased within 180 days from a Dealership or Garage.

Welcome to Nice 1 Limited

Established since 2007, Nice1 Limited originally made its name with the development of innovative insurance solutions for the specialist insurance products marketplace through insurance intermediaries. We pride ourselves on providing up to date solutions tailored to customer needs. Our online offerings provide complete information in non-technical jargon, which should enable you to make informed decisions about product suitability.

Questions?