Transferable Return To Invoice / Finance Shortfall Gap Insurance

In the event of your vehicle being declared a total loss, Return to Invoice Gap Insurance pays the difference between the motor insurers settlement and the purchase price paid for your vehicle.

If you purchased your vehicle under a finance agreement (except where the policy is transferred) and the outstanding finance balance at the point of total loss is greater than the original purchase price, RTI gap insurance will pay the difference between the vehicle value at the point of total loss and the outstanding finance balance.

Cover will include up to a maximum of £250 motor insurance excess.

  • Covers New and Used Cars and Vans
  • Policies from 1 to 5 years
  • 30 Day Money Back Guarantee
  • Unlimited Claim Limits on vehicles up to £50k
  • Covers Insurance Excess Up To £250
  • Covers all drivers on your insurance policy
  • Free Transferable Cover
  • Settles finance agreements

Examples

  • Vehicle Cost:

    £20,000

  • Car Insurance Pays:

    £13,000

  • Gap pays:

    £7,000

With Gap Insurance you get back the full £20,000 purchase price of the vehicle!

  • Vehicle Cost:

    £20,000

  • Motor insurance pays:

    £13,000

  • Gap pays:

    £7,000

You receive £20,000 in total.  The finance company are owed £17,000.

You keep the £3,000 balance after the finance has been settled.

FAQ's

What cover does Return to Invoice + Finance Gap provide?

In the event of your vehicle being declared a total loss, Return to Invoice gap (RTI)  insurance Pays the difference between the motor insurers settlement and the purchase price paid for your vehicle.

If you purchased your vehicle under a finance agreement (except where the policy is transferred) and the outstanding finance balance at the point of total loss is greater than the original purchase price, this Insurance will pay the difference between the vehicle value at the point of total loss and the outstanding finance balance.

Cover will include up to a maximum of £250 motor insurance excess.

What is RTI gap insurance?

Should your car be declared a total loss, our return to invoice gap insurance (RTI) will cover the difference between the settlement you receive from your motor insurer and the price you paid to buy your vehicle in the first place.

The value of your car at the time of being written off will be different to when you first bought it and your motor insurance company will offer you a settlement in line with its current worth, rather than its value when you made the purchase.

Studies show that cars can be depreciate by as much as 60% within the first three years, which could leave you significantly out of pocket if your vehicle was to be declared a total loss. Nobody wants to be put in that position, which is why our RTI gap insurance is an option worth considering if you want to safeguard against what could be a significant financial blow in the event of your car being written off.

How does RTI gap insurance work?

Let’s say that you paid £20,000 for your car. However, at the point where it was declared a total loss, its value had depreciated over time to £10,000. That is the sum that you will receive from your motor insurance company, leaving you £10,000 short of your original investment – a substantial amount by most people’s standards. But by taking out a return to invoice gap insurance policy with Direct Gap, you’ll have ensured your finances remain protected, as we’ll cover the £10,000 deficit.

Alternatively, let’s say that you bought your car for £10,000 under a finance agreement, and the details of that deal meant you were going to be paying back a total of £12,000 once interest payments have been taken into account. Now let’s say that the value of your vehicle when it was declared a total loss was £7,000. That leaves you with a £5,000 shortfall to make up, which will be covered by us if you’ve taken out RTI gap insurance.

What’s more, your cover will include up to a maximum of £250 motor insurance excess.

Do I need RTI gap insurance?

You are not obligated to take out a return to invoice gap insurance policy, but as you can see from the examples above, it could prove a sensible financial decision if the worst was to happen to your car.

If your vehicle was written off and you had no cover in the form of an RTI policy, you could be left significantly out of pocket, or with a large amount left to pay on your finance agreement.

As with any policy, it’s always worth carefully reading through the terms and conditions of your motor insurance documents. If your car is new, some insurers may offer you a replacement vehicle within the first 12 months of ownership. In that situation, you could opt to defer the start of your RTI gap insurance policy until your vehicle is one year old.

Is RTI gap insurance worth it?

Return to invoice gap insurance can prove especially worthwhile if you’ve bought a brand new car that may depreciate quickly over time. If your vehicle was to be declared a total loss, your motor insurer’s settlement will be paid in line with the car’s value at that time, rather than in relation to its purchase price.

That could lead to you losing out on a substantial chunk of money but, by taking out RTI gap insurance, you’ll be covered for that shortfall. The immediate cost of paying for your policy could actually lead to a sizeable saving when compared to the money you’d have to find from your own pocket if your car was written off and you hadn’t taken out gap insurance.

If you’d like to know how much it might cost to take out RTI gap insurance through us, you can follow our simple steps to get a quote online.

Can I get RTI gap insurance if I bought my car on finance?

Yes; our policy is available to those who purchase their cars by way of a finance agreement. If your vehicle is written off and the outstanding balance is greater than the initial purchase price, our RTI gap insurance will cover that difference.

Does RTI gap insurance cover me if I’m at fault?

Yes; our policy will cover you even if the incident that caused your vehicle to be declared a total loss was your fault. However, exclusions apply if the driver is under the influence of alcohol or non-prescription drugs or involved in illegal activity, fraud or an act of wilful negligence. Please carefully read through the terms and conditions of your RTI policy for a full listing.

Do I need RTI gap insurance as well as motor insurance?

Taking out return to invoice gap insurance is not an obligation, but it could prove to be a shrewd financial decision in the event of your vehicle being declared a total loss. That’s because the settlement you receive from your motor insurance company will be in line with the car’s value at that time and therefore you would only regain a proportion of the original purchase price. Having an RTI gap insurance policy means you’ll be covered for up to the initial value of the vehicle, so it may be worth considering as an additional option to your standard car insurance.

When can I claim on my return to invoice gap insurance?

You can claim on your RTI gap insurance policy once your vehicle has been declared a total loss by your motor insurer. The process will then follow these steps:

  1. You will need to call the claims line on 01422 756100
  2. You’ll then be required to fill out the claims form
  3. The relevant paperwork will need to be checked
  4. Your money will then be issued to you by way of bank transfer

What is the vehicle purchase price that I should use to calculate the cost of the policy?

The purchase price is the price of your Vehicle, as confirmed in the sales invoice which includes factory fitted accessories and dealer fitted options up to £1,500, paintwork protection systems up to £250.

You should exclude all deposit allowances, discounts, rebates, concessions, cashbacks, incentives and contributions. Also exclude new vehicle registration fees, road fund licence fee, number plates, warranty costs, insurance premiums, fuel and other extras, arrears or negative equity.

Who is the insurer of this policy?

The insurer, Acasta European Insurance Company Limited,  (registered no. 96218), which is authorised and regulated by the Gibraltar Financial Services Commission and subject to regulation by the Financial Conduct Authority and Prudential Regulation Authority for the conduct of UK business.

The Insurer is covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if the Insurer cannot complete their obligations. This depends on the type of business and the circumstances of the claim. For claims against insurers 90% of the claim is covered with no upper limit.

What is the claim limit?

The Claim Limit is the difference between the motor insurance settlement at the point of total loss and the original purchase price paid OR to settle the finance shortfall, whichever is greater.

When and how do I receive my policy documents?

Policy documents together with confirmation of payment are sent by email as soon as you make the payment.

What is total loss?

Only your insurer can declare the vehicle a total loss which in general can result from accidental damage, your fault or third party fault, fire, theft or vandalism.

Total loss means that you have claimed under your motor insurance, your claim has been agreed, your vehicle has been forfeited (title of the vehicle transferred to the motor insurer) and a payment made following the incident.

How long can I have owned the vehicle for and still buy the policy?

Our Return to Invoice policy can be purchased provided that you have owned the vehicle for less than 180 days.

How can I pay?

It can either be a single one off payment with the use of a credit/debit card without any card charges or alternatively we can arrange for credit payments over 12 months. Please note that the payments are collected by a third party agency and a small administration fee applies.

Whose name should the policy be in?

The policy should always be in the name of the owner/ hirer or registered keeper of the vehicle.

I have new for old cover for 12 months on my motor insurance; can I defer my Return to Invoice policy?

Yes; you can defer the start date for up to a maximum of 12 months but the cover must be taken within 180 days of purchasing the vehicle.

The policy start date must not exceed the anniversary of the vehicles first registration.

It is entirely your responsibility to ensure that you have the appropriate cover provided by your motor insurer during the first 12 months.

Does Return to Invoice Gap Insurance settle my outstanding finance?

Yes; in the event that your finance settlement exceeds the purchase price of the vehicle this policy will settle the outstanding finance shortfall and release you from the finance contract. This excludes negative equity carried forward from any previous finance agreement and arrears on the contract.

Does it cover my motor policy excess?

Yes; up to £250 in the event of a total loss claim.

Can this policy be transferred to a replacement vehicle?

Yes; it can; You can make one transfer during the period of insurance.

if you sell your vehicle, provided that no claim has been made under this insurance, you may transfer the remaining cover to the replacement vehicle, subject to our agreement. No fee will apply for this transfer. A new schedule will be issued confirming the replacement vehicle details. Where the replacement vehicle is deemed to be of a higher value an additional premium may be required.

Cover will not include any refinancing.

In the event of bereavement, the remaining benefits of this Insurance may be transferred to the policyholder's spouse or partner.

Am I covered for theft of vehicle with keys?

Yes; you are covered when keys are stolen from your home or office which results in vehicle theft. However you must exercise due diligence and take appropriate steps to safeguard both the keys and the vehicle.

No insurer, including your motor insurer, will provide cover for wilful negligence. For example if you leave the keys in the vehicle and you go off to pay for fuel which results in the vehicle being stolen.

Why would this policy not pay out?

Please see the policy terms and conditions for a full listing, however the main exclusions are:
The vehicle becoming a total loss whilst the driver is under the influence of non prescription drugs or under the influence of alcohol, involved in illegal activity, fraud or an act of wilful negligence, eg leaving keys in the ignition whilst the vehicle is unattended.

Why is Direct Gap so much cheaper than motor dealers quote?

We are an internet based provider and as such we have lower overheads than motor dealers.

As a result of the high volume of GAP insurance that we sell annually, we are able to provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other web sites.

Paying less than you have been quoted elsewhere in no way means that you are buying an inferior product, it just means that they are making more profit from your purchase!

Can anyone drive my vehicle and still be covered by GAP?

Yes; GAP insurance will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.

Am I covered to drive my vehicle abroad?

You are covered not only in England, Wales, Northern Ireland, Scotland, Isle of Man and the Channel Islands but also in member countries of the European Community and any other country for which an International Motor Insurance Certificate (Green Card) is effective on your vehicle at the point of Total Loss up to 120 days in any one trip.

Is this a one off or annual payment?

It can either be a single, one-off payment with the use of a credit/debit card without any card charges, or alternatively we can arrange for credit payments over 12 months. Please note that the payments are collected by a third-party agency and a small administration fee applies.

Will Brexit affect my Gap Insurance Policy?

Brexit takes place on 31 January, and the UK will no longer be member of the European Union. Many arrangements will stay in place for a transition period whilst a deal between the UK and the EU is negotiated.

The current advice from the UK government is that during the transition period (until 1 January 2021) arrangements for driving in EU countries remains unchanged.

At the end of the transition period you will need to get yourself an International Driving Permit and a green card to ensure your insurance is valid. You will also need a GB sticker for your car.

Note that Brexit does not affect gap insurance. Your gap insurance policy will still be valid if you drive in Europe - however you do need to be covered by a fully comprehensive cover for the policy to be valid in the first place and this will require a green card from your insurer.

https://www.gov.uk/visit-europe-1-january-2021

Where do I get an International Driving Permit?

International Driving Permits can be obtained from the Post Office. You will need a passport photo and your driving licence. Currently different EU member states require different length permits for non-EU drivers - for instance Spain requires a one year permit and Germany a three year. If you are touring the EU you should get both to be on the safe side. 

How much do International Driving Permits cost?

The International Driving Permit costs £5.50 pre document (you may need two if you are driving between countries with different requirements).

How do I get a green card?

You will need to call your insurer before you set off, let them know the exact dates that you require it for. And (naturally) they will charge you. 

Whilst the government advice is to allow a month to receive the green card, our advice from our insurer is that you don’t actually need the bit of paper to travel, they’ll have a note of it if anything unfortunate happens. It is currently not clear whether you will need to carry your green card for examination by the authorities