Vehicle Replacement Gap Insurance

Could pay more than you paid.

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We have 1000's of happy customers, why should you use us? Here are just a few reasons.

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What will it do for you?

“ In the event of an insurance write-off as a result of an accident, fire or most commonly theft, our Vehicle Replacement Gap Insurance will pay the difference between your motor insurers settlement – and the cost of a replacement vehicle matching the original vehicle specification, age and mileage – even if the replacement cost is more than you originally paid. This cover is suitable for cash and finance customers.“

"Having woke this morning and checked the bank account it is a huge relief to confirm we are in funds to the tune of £26,441.69. I cannot thank you all enough for this back to invoice GAP payment......I can confirm that your policy has indeed lived up to the claimed benefit `back to invoice’ and for that - I thank you"

Mr A Preen, February 2019

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Can I buy it?

The statistics do not lie.

According to the Association of British Insurers, over 500,000 vehicles are written off every year. To put this into perspective, this means 57 vehicles per hour, every hour, every day and night are written off.

Whilst those numbers include road traffic accidents, professional theft forms a major part of those statistics. While vehicle security systems have improved to the point that theft by ‘joy riders’ is now a very rare occurrence, there is an extremely lucrative market for the professional thief who will find a way to overcome the very best security systems – even if it means first stealing the keys. A vehicle is often our second highest investment and its portability and value even in dismantled component part form makes it a very attractive and easy target. The statistics do not lie, 57 vehicles per hour every hour night and day – 365 days per year.

What will Vehicle Replacement Gap Insurance do for you?

When a write off occurs, fully comprehensive insurers will only pay the depreciated value at the time of write off. For example, in year 3 of ownership, an insurer might pay 30 – 35% of the original vehicle purchase price, leaving the owner with an unexpected and unplanned expense.

Vehicle Replacement Gap Insurance will pay the difference between;

  • a) the motor insurers claim settlement and,

  • b) the cost of a replacement vehicle matching the original vehicle specification, age, and mileage – even if the cost of doing so is more than the price of the original vehicle.

Vehicle manufacturers generally increase their prices annually at the approximate average rate of 2%. This alone can increase the price of a £25,000.00 vehicle by £2,000.00 over a four year period. Add to this the fact that manufacturers continually develop their ranges and launch upgrades and superseded models, often with better specification and this can similarly add a few thousand more to the cost of replacing with the nearest equivalent model. Harder to calculate is the availability of high discounts. In these difficult economic times, dealers and manufacturers are often giving thousands of pounds off the advertised price to attract buyers. Will this be the case if you unexpectedly needed to replace your vehicle in 3 years time? With Vehicle Replacement Gap protection in place, you need not worry about price increases, model succession or reduced discounts and therefore replacing the vehicle will be much more pleasurable and will prevent a financial burden. Vehicle Replacement Gap Insurance is purchased by and suitable for cash buyers and financed buyers alike. Our Vehicle Replacement Gap Insurance policies are ‘combined’ policies which means that if the vehicle is financed via a dealer arranged plan and the lender's finance settlement figure exceeds the original vehicle invoice price, it will pay that higher figure.


A simple example of how Vehicle Replacement Gap Insurance works

  • A customer buys a car for £15,000.00.

  • After three years of ownership, the car is stolen and written off by the insurer.

  • The insurer agrees to pay the depreciated value at the time of write off which is £6,000.00.

  • The cost of replacing the original vehicle with a model, specification, age and mileage has risen in those two years by £1,500.00

  • In this example, the customer would need to find £10,500.00 to replace the original car.

Vehicle Replacement Gap Insurance would pay that difference of £10,500.00 directly to the customer to enable him/her to spend £16,500.00 on a replacement.

It is extremely low cost by comparison.

Is it good value? Consider these comparisons and examples. The cost of mobile phone insurance for an iPhone or smartphone is approximately £11 per month which means over a three year period we might pay £396.00 to protect a £500 risk. As an example, Vehicle Replacement Gap Insurance, on the other hand, can cover up to £20,000.00 of risk on a £25,000.00 car for less than £169 for a full three year period. When compared to fully comprehensive insurance the value is undoubted. Our fully comprehensive insurance premium might, for example, be £350 per annum, so over a 3 year period we might pay at least £1,050.00 and yet the fully comprehensive insurer's risk is reducing year on year in line with the vehicles falling value. The fully comprehensive insurer also has the ability to increase premiums annually to pay for the cost of claims of others. The gap insurer on the other hand collects one small fixed premium to protect the increasing depreciation risk, price increases, model succession year on year – not to mention the potential for reduced discounts.

So, do you need it and is it a worthwhile investment and good value? – That is for you to decide, but you must agree based on the ABI’s write off statistics – there are compelling reasons to give it serious consideration.

Unrivalled Cover Features*

  • Our policies do not have a ‘Market Value’ clause – our policies pay in addition to your motor insurers settlement,

  • Our policies cover unlimited factory fitted options and dealer fitted accessories including paint & upholstery treatment, insurance premiums, non-transferable warranties and even road fund licence costs,

  • Our insurer will make claim payment directly to the policyholder and not the supplying dealer and it will not source a replacement on your behalf – to provide you greater freedom of choice,

  • Cover includes theft where the thief first gains access to the vehicle keys – a common form of theft today,

  • Our policies will settle outstanding finance even if it exceeds the original vehicle purchase price,

  • Option to defer the start date by 12 months at no extra cost,

  • Our policies do not apply a depreciation to your vehicle’s value if you delay your Gap Insurance purchase,

  • Up to £250 paid toward your motor insurers excess deduction,

  • Our policies cover all drivers named on your motor insurance policy – including provisional licence holders,

  • Modified vehicles covered providing your motor insurer has approved and insured the modification,

  • Written commitment with the terms to settle your claim within 10 days of your motor insurers settlement,

  • Cover available for new and used cars, light vans, and motorcycles up to 10 years of age,

  • 1 – 5 year cover available on most Gap Insurance products,

  • No claim limits for vehicles costing up to £75,000.00, wide choice of claim limits for vehicles costing £75,001.00 – £125,000.00.

Your ‘Peace Of Mind’ Features*

  • Our policies feature set and benefits are better than anything else on the market – guaranteed!,

  • Our insurer does not reserve the right to cancel your policy during the term of the policy – beware of those that do,

  • All policies covered by the Financial Services Compensation Scheme (FSCS),

  • Major ‘A’ rated Insurer with London branch and UK claims team,

  • We are in our 13th year of trading online and are a directly FSA/FCA regulated specialist Gap Insurance broker, trusted by thousands of customers every year since 2007,

  • We are probably the most experienced and knowledgeable Gap Insurance people in the market – 12 years on-line and 30 years within motor dealerships,

  • Independently rated 5 Star cover,

  • Featured in Which? magazine,

Customer Friendly Features*

  • Free policy amendments, no charge for address or registration number changes,

  • Our Vehicle Replacement Gap policies are transferable free of charge if you change your vehicle,

  • Our policies are cancellable with a pro-rata refund of unused premium less a £20 cancellation fee charged by the insurer, except where a new policy is purchased in which case no fee is charged,

  • Change your vehicle during your period of cover and receive a refund of unused premium to use toward the purchase of a new policy from us,

  • FREE transfer to next of kin upon death.

The above list represents some of the key benefit features, please refer to the full policy terms and conditions for greater detail. Always read the policy terms & Conditions before buying anywhere!

In cases of a policy transfer to another vehicle, if the purchase price of the replacement vehicle exceeds the price of the original vehicle, we may need to cancel your cover and provide a pro rata credit of unused premium to use towards the purchase of a new policy. In the event of a claim, the cost of fuel is not covered. Please refer to policy terms and conditions for more detail. Negative equity carried across from a previous vehicle and finance agreement (in part exchange) can be also be covered for a small additional premium – Please call 01438 870615 for further details.

* The policy Terms & Conditions and features apply to policies purchased on or after 1st October 2018, for terms and features on policies purchased before the 1st October 2018 please refer to your original policy documents issued.

You can buy this cover if…

  • Your car, van, or motorcycle is under 10 years of age and less than 100,000 miles at the start of cover,

  • You are the person/company named as the policyholder or named driver on the motor insurance policy,

  • Cover is purchased within 180 days of vehicle purchase or intend to take delivery in the next 60 days, if not please see our Agreed Value Gap Insurance,

  • Your car, van, or motorcycle invoice price did not exceed £125,000 at time of purchase,

  • Your vehicle was purchased with cash or if it was financed,

  • You are the V5 registered keeper of the vehicle or where financed you are the person or business named on the finance agreement (This type of cover is not available for Contract Hire agreements),

  • Your vehicle is listed in the Glass’s Guide and principally used in the UK.

  • You purchased your vehicle from a VAT registered motor / motorcycle dealer. If you purchased from a private vendor – please see our Agreed Value Gap Insurance,

You can’t buy this cover if…

  • Your vehicle is used for competition, road racing, pacemaking or off road use,

  • Your motor insurance is a Motor Trade insurance policy,

  • Your vehicle is used as an emergency service vehicle, heavy goods vehicle or mini-buses over 19 seats,

  • You have purchased your vehicle from an auction,

  • Your vehicle has been modified from the manufacturer’s specification without your motor insurers agreement,

  • Vehicles over 3500kg gross weight.

  • Taxi’s & Minicabs, Driving Schools and Emergency Service vehicles, (unless a premium supplement of 10% is paid) any vehicle not listed in UK Glasses Guide or a kit car.

Warning: The above is a summary. Before purchasing please read the Terms and Conditions of this policy carefully to ensure it meets your needs and you meet it’s eligibility criteria.

For full eligibility and policy Terms & Conditions please view the Vehicle Replacement Insurance policy document.

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Vehicle Replacement Gap Insurance