LoginAbout Gap Insurance
You may already be a Click4Warranty policyholder, or just having a look to see what we offer, but did you know that we also offer Gap Insurance?
If you’ve bought a car in the last 180 days, no matter if it’s new or used, consider for a moment what will happen in the unfortunate event your car is written off or stolen. This can be as the result of an accident, theft, fire or flood… it may not even be your fault, but just an unfortunate accident.
Your motor insurer will settle your claim at the market value of your vehicle at the time of loss. This doesn’t take into consideration the impact of your vehicle’s depreciation, which could be as much as 60% over the first 3 years. Or even worse, the added costs such as interest and penalties for settling your finance agreement early. This can leave you with a gap of many thousands of pounds, and wondering how you’ll ever manage to pay off the shortfall… and on top of all that, afford to pay for a replacement.
So, while a new vehicle in the family is generally a time of great excitement and positivity, it’s also the time you need to consider covering the risks associated with vehicle ownership. And, too often the impact of vehicle depreciation, or the added costs associated with settling a finance agreement early are not considered, leaving us with a shortfall on the insurance pay-out and vulnerable to severe financial pressure should the worst happen.
Just check out the illustrative example below that best matches your particular circumstances to see what the probable impact might be.
Is Gap Insurance worth it?
Market value at loss,
covered by your
motor insurer
Possible shortfall amount,
for your account
If you paid £25,000 cash for your car and a year or so later it’s declared a total loss, after your motor insurance pay-out you could have a shortfall of as much as £8,030. If you have Gap Insurance, this shortfall would be covered in total up to an amount of £75,000, subject to the policy terms, plus up to £1,500 for dealer-fitted accessories and £500 towards your motor insurance excess.
What will Gap Insurance cover?
When you take out Gap Insurance with Click4Gap, you know that you won’t be left out of pocket should the worst ever happen and you vehicle is written off or stolen.
The added protection of Gap Insurance cover means that you’ll be financially protected against the shortfall between the market value your insurer will pay out, and the gap that you’ll be expected to cover yourself, subject to the policy terms. In addition, your claim will be paid out directly to you within days.
Here’s the protection you can rely on with Click4Gap cover:
- Up to £75,000 cover for your motor insurance shortfall
- Up to £1,500 cover for dealer-fitted accessories
- Up to £500 towards your comprehensive motor insurance excess
- 30-day, no risk, money-back guarantee
- Cover from day one, with no hidden costs
The policy documents below will provide you with full details, please ensure you read them carefully:
What is vehicle depreciation?
There are several factors that determine a vehicle’s depreciation. These are generally linked to its use since you bought it, and takes into account things like mileage, wear and tear, and body condition. Age and use increases the chance of dents and scratches, as well as mechanical failure, which all lower the value. In addition, things like newer models entering the market that offer more up-to-date technology and features will also impact your vehicle’s depreciation.
Simply put, depreciation is the difference between what you paid for your vehicle when you bought it, and what it’s market value today is if you were to sell it.
How much could my vehicle depreciate?
The average vehicle typically depreciates at a rate of around 20% per year from new. This means that at 3 years of age, you could lose around 50-60% of its original value.
This becomes really significant when your comprehensive motor insurer pays out significantly less than you anticipated if your vehicle is declared a total loss. Without Gap Insurance, you’ll be expected to cover any shortfall yourself… and that could amount to thousands.
You’ll find link to a car depreciation calculator here.
What vehicles are eligible for Gap Insurance cover?
- Cars up to 7 seats, driving school vehicles and taxis up to 10 seats are eligible.
- Fuel types: Internal Combustion Engine (ICE), Electric Vehicle (EV), Plug-In Electric Vehicle (PEV), Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Mild-Hybrid Vehicle (MHV), Plug-in Hybrid Electric Vehicle (PHEV).
- Motorbikes, including scooters and mopeds.
- Driving school vehicles, and taxis with 10 seats or less.
Is Gap Insurance only for new vehicles?
No, you can take out Gap Insurance on any vehicle up to the age of 8 years (96 months) at the inception date of the policy. While the shortfall may be somewhat less significant as your vehicle gets older, it will still need to be covered by you… and who wants to pay for a vehicle you no longer have? Never mind that you’ll still have the cost of replacing it with another one.
Can I still take out Gap cover if I financed my vehicle?
Yes, Gap Insurance from Click4Gap is also designed to assist you if you financed your vehicle. And, considering the additional costs you’ll face if you have to terminate your agreement prematurely, like interest and early settlement charges, you’ll be glad you took out cover if it’s ever declared a total loss.
What if I paid cash for my vehicle?
If you bought your vehicle for cash, you’ll still have lost the capital you put into it when it’s declared a total loss and needs to be replaced. That’s hard-earned cash that you’re surely not keen to lose. Gap Insurance will give you the comfort of covering this so you won’t be left out of pocket… and free to get on with your life.
Here’s some more information on our Combined RTI Gap cover
Do I still need Gap Insurance if I have motor insurance?
Your motor insurer will pay-out the market value of your vehicle at the time of loss, but this won’t cover you for depreciation, possibly leaving you with a substantial shortfall as a result. Your Gap Insurance will cover this amount, and is paid directly to you. This is a financial decision you may well want to consider.
How can I get Gap Insurance for my car?
If you want to take out Gap Insurance it’s a very simple process that will take just moments. Please follow the link below to get a quote, and if you’re happy that it’ll protect you in the event of a total loss, just click buy and you’ll be covered the moment your payment is received.
How can I pay for my Gap Insurance cover?
We provide two ways to pay for your cover:
- You can make one, single payment through your credit or debit card, and enjoy cover that will start immediately after your payment is received.
- You can choose to pay with our convenient monthly payment plan. This means you’ll pay your premium over 12 months and your cover will start as soon as your first payment is received.
When should I take out Gap cover?
Take out Gap Insurance from Click4Gap as much as 180 days after you buy your vehicle, and there’s no age or mileage limit once your policy starts.
What if I decide I no longer want my Gap cover?
In the event you decide this cover isn’t for you, you can cancel with a full premium refund during the first 30 days, as long as you haven’t made a claim, or don’t intend making one.
If you decide to cancel after 30 days, you will be eligible for a pro rata refund, under the same conditions, less a small administration fee of £35.
How do I claim on my Gap Insurance policy?
Our specialist claims managers, AutoProtect (MBI) Ltd., have been appointed to provide you with an efficient and effective claims experience.
To register your claim, please follow the process described in How to claim.
Get your Gap Insurance quote TODAY!
There’s absolutely no cost or obligation on your part when you get a quote from Click4Gap, and it’ll take just moments. Simply click below to get started.
If you’d prefer to talk to someone in person, our friendly Customer Service team are waiting for your call. Just dial us on 0203 921 0626 weekdays, during office hours