Losing your car
If your car is stolen and never recovered, or written off through accident or fire, the settlement from your motor insurer could be significantly less than the original purchase price you paid. Most motor insurers base total loss payments on the market value of your car at the time of the incident. Any depreciation since you purchased the car is potentially your loss.
Filling the GAP
GAP stands for Guaranteed Asset Protection, and that’s exactly what it does. In the event of a total loss, GAP insurance could cover the difference between your motor insurance settlement and the amount you originally paid for the vehicle, or the amount outstanding on finance - whichever is greater! GAP insurance will complement your own vehicle insurance and provide the reassurance and financial support you need to get back on the road in a vehicle with the same value as your original choice.
If an incident occurs resulting in your vehicle being written off due to accident, fire or theft; then the settlement amount you receive from your motor insurer could be significantly less than the outstanding balance or the original retail price.
The market value of your vehicle at the time of the incident is used by most motor insurance companies to determine the total loss payment. Any depreciation in the vehicle value would potentially be a loss incurred by you.
You could be left without a vehicle plus the burden of settling any outstanding finance or lease balance.
In the event of the total loss of the insured vehicle, we will pay a maximum benefit equal to the difference between your motor insurance settlement and the original retail price of the insured vehicle, or if greater and on all lease policies, the amount you require to pay your early settlement amount. This insurance will also contribute to the excess deducted by your motor insurer.*
* Terms, conditions and exclusions apply. Please refer to your policy documentation for full details.