Return to Invoice Gap Insurance

Free Quote Hotline

0800 028 3571

• Home
• Mortgages
• Credit Cards
• Loans
• Investments
• Banking
• Pensions
• Insurance

Return to Invoice Gap Insurance

Return to Invoice Gap insurance is designed to cover the difference between the original cost of a car and the insurance payout if it is written off. It is widely accepted that a car loses its value by between 35 and 90 percent within the first three years of its manufacture however without Gap Insurance a normal fully comprehensive insurance policy may leave a motorist with significant losses that could be avoided.

If a motorist purchased a car for £20,000 and 18 months later the insurance company wrote off the car, and agreed to payout £14,000 the claimant would have suffered losses of £6,000. However a Gap insurance policy would cover these losses allowing the claimant to have the same amount of money they originally had to purchase a new car.