Which Gap Insurance policy is right for me?

As a specialist Gap Insurance provider, Direct Gap offer several policies for your individual circumstances. It can sometimes be difficult to know which type of cover is best for you and your vehicle, which is why we’ve put together this handy guide.

Below, we’ll take you through the four different types of Gap Insurance. We’ll explain how they work and the benefits each policy offers, to help you make a decision on which form of cover is going to be right for you. 

Finance/Lease/Contract Hire Gap Insurance

What is Finance/Lease/Contract Hire Gap Insurance?

If your vehicle is damaged beyond economic repair, written off or, as your insurer would say, ‘declared a total loss’, Finance/Lease/Contract Hire Gap Insurance will pay the difference between your insurer’s payment and any outstanding finance.

Why do I need it?

If your vehicle is declared a total loss, your insurer will pay you its value at the time of the accident. This is the second-hand value and won’t be the price you paid for the car when it was new.

If this amount is not enough to settle outstanding finance on the vehicle, you will have to cover the difference out of your own funds. Finance/Lease/Contract Hire Gap Insurance will cover that shortfall between your insurer’s offer and the outstanding finance settlement payment.

Find out more about Finance/Lease/Contract Hire Gap Insurance.

What are the policy benefits?

  • Covers finance and settlement charges
  • Deposit protection up to £2,000
  • 30-day money-back guarantee
  • Covers insurance excess up to £250
  • Applicable on contract hire, HP, PCP and leases
  • Policy terms from 1-5 years
  • Unlimited claim limits on vehicles up to £50k
  • All drivers on your insurance policy are covered

Get a quote for Finance/Lease/Contract Hire Gap Insurance

Return to Invoice Gap Insurance

What is Return to Invoice Gap Insurance?

Return to Invoice (RTI) Gap Insurance covers the value of your vehicle when you bought it. It ensures that if your car is declared a total loss, the difference between your insurer’s payment and the purchase price of your vehicle is covered. This includes any outstanding finance.

Why do I need RTI Gap Insurance?

If your vehicle is declared a total loss, your insurer will offer a settlement in line with its value at the time of the accident. This won’t be the price you paid for the car when it was new and it often isn’t enough to cover the outstanding amount if you used finance to buy the vehicle.

Our Return to Invoice Gap Insurance policy will pay the difference between your insurer’s settlement and the vehicle’s value when you bought it. This includes settling any outstanding finance balance.

If you paid cash for your vehicle, your policy will cover the difference between the insurer’s final settlement and the original purchase price – enabling you to replace it with one of similar value.

Find out more about Return to Invoice Gap Insurance.

What are the policy benefits?

  • Settles finance agreements
  • Covers new and used cars and vans
  • 30-day money-back guarantee
  • Excess covered up to £250
  • Free transferable cover
  • Policy terms of 1-5 years
  • Covers all named drivers on your insurance
  • Unlimited claim limits on vehicles up to £50k

Get a quote for Return to Invoice Gap Insurance

Vehicle Replacement Gap Insurance

What is Vehicle Replacement Gap Insurance?

Vehicle Replacement Gap Insurance pays the difference between your insurer’s final settlement and the cost of replacing your car to the same specification as when it was purchased.

Why do I need it?

If your vehicle is written off, your insurer will pay you in line with its value at that point, not the amount needed to replace the vehicle with a new one of similar quality. This is also not usually enough to pay off any outstanding finance arrangements.

Vehicle Replacement Gap Insurance will cover the difference between your insurer’s settlement and the cost of replacing the vehicle with one to the same specification as when you bought it. Any outstanding finance will be paid off.

Find out more about Vehicle Replacement Gap Insurance.

What are the policy benefits?

  • Covers both new and used cars
  • Accounts for increases in car list price
  • Unlimited claim limits on vehicles up to £50k
  • Covers dealer discounts
  • Free transferable cover
  • Policies from 1-5 years
  • Covers insurance excess up to £250
  • Protects all named drivers on your insurance policy

Get a quote for Vehicle Replacement Gap Insurance

Agreed Value Gap Insurance

What is Agreed Value Gap Insurance?

Agreed Value Gap Insurance pays the difference between the insurer’s final settlement and 100% of the Glass’s Guide Retail Price on the day you purchased the policy. It is suitable for vehicles purchased privately or those that have been owned for more than 180 days.

Why do I need it?

If your car is declared a total loss, you will be offered an amount by your insurer based on the vehicle’s worth at that time. This is likely to be lower than the value of your car when you bought the policy, and the difference could run to thousands of pounds. An Agreed Value policy from Direct Gap will cover that difference, so you won’t be left out of pocket.

Find out more about Agreed Value Gap Insurance.

What are the policy benefits?

  • Covers new and used cars
  • 30-day money-back guarantee
  • Covers loss through theft of keys
  • Policies from 1-4 years
  • All factory-fitted optional extras are covered
  • Free transferable cover
  • Covers insurance excess up to £250
  • All named drivers on your insurance are covered

Get a quote for Agreed Value Gap Insurance

Why choose Direct Gap for your Gap Insurance?

We’re one of the leading suppliers of Gap Insurance in the UK and there are plenty of reasons to choose us, besides our selection of policies:

  • Knowledge: Our team are all fully trained professionals who specialise in Gap Insurance, and all claims are dealt with in-house so you’ll never be put through to a call centre.
  • Flexibility: We’re wholly committed to helping you find a policy that perfectly suits your requirements.
  • Responsibility: We’re fully regulated by the Financial Conduct Authority and hold ourselves to the very highest ethical standards.
  • Integrity: Our team don’t make any commission from sales of Gap Insurance, so you can be sure they always have your best interests in mind.
  • Service: We always put our customers first, and our 5-star Feefo rating shows that it’s an approach that pays off.

If you’d like to know more about Gap Insurance or which type of policy might be best suited to your situation, you can get in touch via email at enquiries@directgap.co.uk or by telephone on 01422 756100.