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 three 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.
Lease & Contract Hire Gap Insurance
What is 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’, Lease & Contract Hire Gap Insurance will pay the difference between your insurer’s payment and any outstanding finance.
Why do you 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. Lease & Contract Hire Gap Insurance will cover that shortfall between your insurer’s offer and the outstanding finance settlement payment.
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.
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 VRI?
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.
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.
Trusted Since 2009
Since 2009, we’ve helped more than 160,000 customers protect vehicles worth over £4 billion.
With an average rating of 4.9 out of 5 from more than 14,000 reviews across Google, Feefo and Trustpilot, we’ve built a reputation for dependable cover and consistently excellent customer service.
Regulated Insurance Products
We only offer regulated insurance products, giving our customers important safeguards and peace of mind.
We’re authorised and regulated by the Financial Conduct Authority. Our FCA authorisation number is 1050283.
Eligible customers can also refer complaints to the Financial Ombudsman Service and may benefit from Financial Services Compensation Scheme protection.
Your Interests First
Our team aren’t paid commission for selling policies, so there’s no incentive to recommend additional cover or a more expensive policy unnecessarily.
Instead, they’ll take the time to understand your circumstances, answer your questions honestly and give you the relevant information so you can choose cover that genuinely meets your needs.
Flexible Policy Options
Our policies are designed to adapt to real life rather than take a one-size-fits-all approach.
From different types and levels of protection to free vehicle transfers and the option to defer selected policies for up to a year, we give you the flexibility to choose cover that works around your circumstances.
Gap Insurance Experts
Our UK-based team consists of professionally trained specialists with extensive knowledge of cars, motor finance and Gap Insurance.
Whether you need help understanding your options, choosing suitable cover or managing an existing policy, you’ll speak to someone who knows the subject without being passed around a generic call centre.