Return To Invoice Gap Insurance from car2cover

"...When I had my car written off I claimed on my 'back to invoice' policy. The claim was easy to process and the full payment was made very speedily. Taking out the new policy was handled efficiently and with great care...Many Thanks" T Horner 27/11/11

Common Questions



  • My dealer has offered a me a Gap Insurance policy, how does your cover compare to theirs?
      In every case we have compared so far, our policies have offered significantly better terms and conditions. When buying gap insurance, always bear in mind that regardless of the level of cover and type of cover chosen, the policy will have a number of exclusions and potential claim deductions which can substantially reduce how much you receive when you make a claim. Ignore this at your cost. We have designed our gap insurances to have the least exclusions and potential claim deductions on the market – bar none!. We would be happy to prove that by comparing our policy with that of your dealer or other on-line broker. Call us today on 0843 289 8318 or contact us by Live Messaging. Please do not make the mistake of thinking all gap insurances are the same – they are often substantially different in the terms and conditions.
  • Why are your prices so much lower than my dealer? What’s the catch?
      There is no catch. The difference is very simple for us to explain because we come from motor dealer backgrounds. A typical high volume motor dealer might sell 40 – 50 insurance policies per month, and to make that worthwhile they will want to make a substantial profit from every policy. As a national on-line broker with thousands of buyers visiting our web site every week, we are selling substantially more policies than dealers or even a dealer group. As such we are able to negotiate better policy prices and because we enjoy low overheads – we can accept a very small profit from each sale. If you have negotiated a good deal on the vehicle you are buying, why would you want to throw away that financial advantage by allowing the dealer to make hundreds of pounds out of your gap insurance policy?
  • If I buy from you, how safe will my policy be?
      All brokers and insurers doing business in the UK are authorised by the Financial Services Authority. We, and our insurers are covered by the FSCS (Financial Services Compensation Scheme). Every 6 months the FSA check the financial status of brokers and insurers to make sure they meet their financial criteria.
  • What does 'claim limit' or 'cover level' mean?
      Most gap insurances require you to choose a suitable level of cover for the risk you wish to cover. The calculation you need to use for a Contract Hire agreement is simple. Estimate the total rentals due under the agreement and add vat if you are a private individual or non vat registered business. For Return to Invoice gap insurance you need to estimate what your insurer might pay (the market value) in the event of a write off toward the end of your expected period of ownership where depreciation will be at its highest. Then deduct that figure from the price you originally paid for the vehicle. The figure you arrive at will be the minimum level of cover you need to consider. For Vehicle Replacement gap, carry out the last calculation but add to it how much more you think you might need to spend to replace your vehicle. Bear in mind manufacturer annual price increases, inflation, reduction of discounts and of course any liklihood your vehicle model may be superceded. Confused? Call us 0843 289 8318.
  • Why must I choose the claim limit?
      To treat customers fairly, insurers offers a range of cover levels to suit the specific requirements of the customer in terms of their vehicle price, expected period of ownership and annual mileage. It goes without saying that a high mileage driver will need a higher level of cover than a motorist who drives very few miles each year. Remember, the level of cover is your best guess at the likely depreciation you will suffer in the event of a write off. To reduce the risk of choosing an insufficient level of cover, we do uniquely offer a range of ‘No Claim Limit’ policies . They are slightly more expensive, but you will have the peace of mind that the policy will do what it is deigned to do. WARNING. Some motor dealers will simply recommend a policy and will choose a claim limit for you. If that policy type and claim limit is not sufficient, the shortfall will not be the dealers responsibility – it will be yours! You will not be entitled to claim against the dealer. Do consider your requirements carefully.
  • My comprehensive motor insurer provides new for old cover in the first year. Can I purchase a cover and start it when my new for old cover expires?
      Yes you can – but you do need to be very confident your insurer will provide a like for like replacement and will cover all the factory fitted options, dealer accessories including items such as paint and upholstery treatments, and premiums paid for other insurances. You would still need to purchase Gap Insurance within 180 days from vehicle delivery but you can request your policy starts 12 months after the date of first registration. Unlike other similar schemes on the internet, if you buy a 3 year policy and defer it - there is no extra charge and you will be able to defer the full three years and not just two as we have seen elsewhere. So, with us you would have 4 years protection by buying a 3 year cover!
  • Are the premiums you quote an annual payment or a one off cost for the full period?
      The premiums we quote are fully inclusive for the full period of cover you have chosen. They include Insurance Premium Tax and are not subject to VAT. We do not charge for taking payments by credit or debit cards, bank transfer or cheque.
  • I sometimes travel abroad, will your policies cover overseas travel?
      Yes, our insurers cover also applies to member countries of the European Community and any other country for which an International Green Card is effective on your vehicle, up to 60 days in any one trip.
  • Are your policies transferable?
      Yes, there are three types of transfer available within the policy. In the event of a total loss occurring within the new for old period (ie new vehicle) of your fully comprehensive motor insurance, the balance of your Gap insurance can be transferred to the replacement vehicle – free of charge. Otherwise if you sell your vehicle, you may transfer the remaining cover to the replacement vehicle, for which the administrator will charge a £35 administration fee. In the event of a bereavement, the remaining benefits of your gap insurance may be transferred free to the policyholders spouse or partner. This feature is currently not available in Gap insurances sold elsewhere.
  • I will be the main driver of the vehicle, but my partner/spouse will be the registered keeper and fully comprehensive insurance policyholder. Who should be named as the Gap insurance policyholder?
      The Gap policy holder should be the V5 registered keeper or the authorised user if you are using a Contract Hire agreement to finance your vehicle. There are many permutations and we will always do what we can to accommodate your circumstances. Please call us on 0843 289 8318 for more information. Any driver named on the fully comprehensive motor insurance policy will be covered by our Gap insurances at no extra cost.
  • I paid cash for my vehicle, am I right in thinking Gap insurance is not suitable for me?
      No, Gap insurance is equally important to those who pay cash and those who choose to finance. If you are paying cash Finance & Contract Hire Gap insurance would not be suitable, but Return To Invoice and Vehicle Replacement Gap would be. These two products will insure the unexpected and enforced depreciation that can occur when an insurer chooses to write off your vehicle.
  • I am leasing a vehicle on a Contract Hire agreement, is this policy suitable for me?
      Yes. Under a Contract Hire agreement you have two liabilities (risks). The first you will protect by insuring the market value of the vehicle by way of a fully comprehensive motor insurance. The second liability is the outstanding rentals/payments due to the contract hire company at the time of loss. Breaking a Contract Hire agreement early, even in the event of a write off, will require you to pay the remaining rentals in one lump sum. Some Contract Hire companies may reduce the total by a nominal amount but they will not tell you within the contract what those arrangements might be. This liability can be insured using Finance & Contract Hire gap insurance.
  • I am leasing a vehicle on a Contract Hire agreement, is this policy suitable for me?
      No. Finance & Contract Hire Gap insurance is designed for Contract Hire agreements. Under a Contract Hire agreement there is no requirement for you to have insurance in place that will return the Contract Hire company the full invoice price during the term of your agreement. You are required only to have fully comprehensive cover in place, which will pay them the market value at time of loss and you can optionally insure for the potential bill you may receive for the outstanding rentals due to them by way of a Finance and Contract Hire Gap insurance policy.
  • When obtaining a quotation on your web site, I am asked to provide a ‘Vehicle Value’, what does this refer to?
      The ‘Vehicle Value’ is the on the road price you paid your dealer - after discount.
  • Some Gap policies refer to the term ‘Market Value’ – what does this mean?
      ‘Market Value’ is the price your fully comprehensive insurer should pay you for your vehicle at time of total loss. It is recognised by the motor and insurance industry to be equal to ‘Glasses Guide’ retail mileage adjusted for specification, trim level and mileage.
  • Some Gap policies refer to a Glasses Guide %, what does this mean?
      Firstly, this restriction does not apply to our policies so this is not something you would need to concern yourself with if choosing one of our Gap insurance policies. In the event of a claim on your Gap insurance policy, the insurer will check that you did not pay more than a specified % of the Glasses Guide recommended retail price for the insured vehicle. If you did, they will deduct the amount you overpaid from your claim settlement. If you are considering purchasing a policy with this restriction, you should first purchase a Glasses Guide valuation and compare that with the price you are paying for your vehicle. That research will then identify what the gap insurer might deduct when you make a claim. To save time and eliminate this risk – consider a car2cover policy as this restriction is not present in our terms and conditions.
  • Will your policy cover theft where the thief gains access to my keys?
      Yes. In the event of a vehicle being stolen where the thief gains access to the keys, ie home or office burglary, desk drawer, jacket, gym locker etc, some Gap Insurers will not pay out. Ours will - providing your fully comprehensive insurer also agrees to do so, but you must ensure you take reasonable steps to secure your vehicle ie remove the keys from the ignition and activate the security devices.   Theft with use of keys is one of the most common causes of vehicle write off and our policies are paying out in those circumstance. How can you be sure the policy will cover theft with keys ? Only by checking the exclusions section of the policy terms and conditions. Do not accept what you might be told by a broker or dealer, you must check the legally binding contract – the terms and conditions. If theft with use of keys is excluded - you will not be covered.
  • Will your policy cover my motor insurers excess?
      Yes, our policies will pay up to £250 toward your fully comprehensive insurers excess. So, not only will it pay for risks that your motor insurer will not cover – it will also pay £250 towards the excess they will charge you !
  • My vehicle has been modified slightly from the standard specification, will your policies cover these circumstances?
      Providing your fully comprehensive insurer covers the modification, so too will our Gap Insurer. Be careful, the majority of Gap insurance policies do not cover modifications and others charge extra. Always read the terms and conditions.
  • Can I extend or renew my Gap insurance later?
      Yes and No. No you cannot extend or renew the original policy and protection. You could however choose to take an Agreed Value policy upon expiry of your original Gap insurance - but the value protected would only be the Glasses Guide retail value at the time of purchasing the Agreed Value policy.
  • If I make a claim on your Gap insurance policy, how long do I wait for payment?
      Our policies are the only Gap insurance policies on the market that provides a written commitment within the terms and conditions on this question. Within the terms and conditions of our policies is a contractual commitment to pay within 14 days of motor insurers settlement. However, the average time is 3 – 4 working days.
  • How long do I have to take Gap insurance?
      Our insurers are happy to provide a 180 day period from date of vehicle purchase in which our customers can purchase Gap insurance. If you are purchasing a new vehicle you can purchase gap insurance within the 180 day period and defer the start date to 12 months after the date of first registration. If you are a used vehicle buyer, please be aware that no fully comprehensive insurer provides like for like cover and thefore Gap risk exists from the day you take delivery.

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