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Return To Invoice Gap Insurance is a Gap cover designed to help motorists recover the full original purchase invoice price in the event of an insurance write off. Let's take a look at how this might typically work;
| Mr Green buys a vehicle for an agreed inclusive price of | £15,000.00 |
Sadly, after 24 months of happy motoring Mr Green’s car is stolen and written off by his insurer. |
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| Mr Green’s insurer agrees to pay | £ 8,000.00 |
| In this case Mr Green has suffered a financial loss of | £ 7,000.00 |
If Mr Green had purchased Return To Invoice Gap, the policy would have paid £7,000.00 to enable him to buy a replacement car for the same price he originally paid without using his own funds.
To summarise, Return To Invoice will pay the difference between what you pay for your vehicle and what your motor insurer agrees to pay, up to the claim limit you choose and for the period you require.
The payout received from a Return To Invoice Gap claim can also be used to clear any outstanding finance agreement and may leave a surplus to be used as a deposit for your replacement car.
Return To Invoice Gap is not normally used for Leasing or Contract Hire agreements because the hirer has little financial interest in the original invoice price. However if a high level of advance rentals were paid, Return To Invoice cover should be sufficient to recover those to help fund a replacement car. It is rare for Return To Invoice Gap to be used in this way.
