GAP (Guaranteed Asset Protection) insurance is an insurance product that you can buy to make sure you're not left out of pocket if your financed car is written-off or stolen and not recovered. Imagine having your car written off and being left with insurance payments still left to pay - GAP insurance helps mitigate that risk. Here at Redrose Cars, we are able to offer two different types of GAP Insurance to ensure you are getting the right policy for your needs.
Finance GAP Insurance
This pays the difference between how much the insurance pays out for the car that was written- off (the settlement amount) and how much outstanding finance remains to be paid on that car.
Return to Invoice (RTI) GAP Insurance
This pays the difference between how much the insurance pays out for the car that was written-off (the settlement amount) and how much you originally paid for the car.
E.g. If you bought a car for £10,000 and after the car was written-off the insurance company paid £4,000 for the car, then the GAP Insurance would cover the difference, so would pay out £6,000.
This is only available for cars which are less than seven years old. The policy must be taken out within three months of buying the car. This policy type is also known as 'Back to Invoice' insurance.