GAP insurance UK guide 2023

There are several types of GAP insurance, depending on the specifics of what you wish to cover. Return to invoice  Return to invoice (RTI) covers the difference between the insurance provider’s value of the car at the time of the loss and the vehicle’s original purchase price. It aims to return you to the financial position you were in before you purchased the vehicle. RTI cover is typically the cheapest GAP option.  Return to value  Return to value insurance covers the difference between the insurance payout and the car’s value at the time you took out the GAP policy. It’s beneficial for those who bought their vehicles second-hand or have had them for a while before deciding to take out GAP insurance. Finance GAP insurance Specifically designed for those with outstanding finance on their vehicle, finance GAP insurance covers the gap between the insurance payout and the remaining balance owed on a vehicle finance agreement. Combined RTI  This policy blends return to invoice and finance coverage. Your insurer will compensate for the greater amount, be it the initial purchase price of your vehicle or the remaining balance on your finance agreement. Negative equity  If you have a car finance deal and owe more than the car’s value at the time of claiming, it’s covered by negative equity GAP insurance. Vehicle replacement Vehicle replacement GAP insurance covers the difference between the insurance payout and the cost of a brand new vehicle of the same make, model, and specification. It’s beneficial when vehicle prices have increased since your original purchase. Contract hire  Tailored for leased vehicles, this insurance pays the difference between the insurer’s payout and the amount required to settle the lease or contract hire agreement. This can also include any outstanding rental amounts.