Guaranteed Asset Protection (GAP)
Guaranteed Asset Protection (GAP)

Guaranteed Asset Protection (GAP)

What if?

Your car is declared a write-off due to an accident, fire or theft?

Now imagine discovering that the insurance company pay-out will not match the outstanding finance amount (i.e. the settlement figure).

This is a scenario faced by many motorists today. Even if they are not liable, they are almost certain to find a shortfall between the amount they receive from their motor insurance provider and the outstanding finance. And this shortfall could be a significant sum depending on the rate of depreciation of the vehicle.

Who will protect them against this financial loss?

For peace of mind and for the protection your vehicle needs, consider the cover Finance GAP can offer.

How GAP works

Let’s say you paid £18,500 for your car and then the car is unfortunately involved in an accident and your motor insurance providers declare it a total loss. Using current market values the motor insurance provider values your car at the time of the accident at £12,000. However, you still owe the Finance Company £15,000. The GAP insurance should payout the £3,000 difference - it’s as simple as that!

Significant benefits

  • Designed to provide financial protection if you have taken out a finance agreement to fund the purchase of your vehicle.
  • Provides financial protection if you have used finance to purchase your vehicle
  • Finance GAP policy should pay the difference between the amount paid out by the motor insurance provider and any outstanding finance on your vehicle.
  • Meets the ABI code of practice.
  • Transferable.
  • Cancellable.