GAP Insurance

Standard Guaranteed Asset Protection (GAP) insurance covers the finance agreement on your client’s vehicle. In the event of a claim, GAP insurance bridges the gap between the insurance payout your client receives and the outstanding balance on their finance settlement. This ensures that your client is not left with a financial shortfall if their vehicle is written off or stolen and the payout from their primary insurer is insufficient to cover the remaining loan amount.

The Return to Invoice (RTI) product offers an additional layer of protection. It covers the difference between the payout received from your client’s primary motor insurer and the original purchase price of the vehicle. This means that if your client’s vehicle is written off or stolen, they will receive the amount they originally paid for the vehicle, rather than just its depreciated market value at the time of the loss. RTI insurance effectively restores your client to the financial position they were in when they first bought the vehicle.

Vehicle Replacement Insurance (VRI) is the most comprehensive of these products. It covers the cost difference between the insurance payout and the cost of replacing the vehicle with a new one of the same make, model, and specification as originally purchased. This product ensures that your client can replace their vehicle with an identical new one without incurring additional out-of-pocket expenses, even if the replacement vehicle has increased in price since the original purchase.

These three products—Standard GAP, RTI, and VRI—provide escalating levels of financial protection for your clients. Standard GAP ensures that any remaining finance is settled. RTI reimburses the original purchase price of the vehicle. VRI allows for the replacement of the vehicle with an identical new one. Together, they offer comprehensive coverage options to suit varying client needs and preferences, ensuring peace of mind in the event of vehicle loss.