GAP Insurance at Johnsons Cars

Understandably, the last thing you wish to think about when your glorious new car arrives is the possibility of it being severely damaged. The question of what to do if your vehicle suffers serious damage whilst still nearly new, however, is one that cannot be ignored.

Generally speaking, car insurance policies have a limit on how much you can be reimbursed if your car is written off or sustains lasting damage from an accident; furthermore, this limit tends to be less than its total value.

GAP insurance is a supplementary policy that runs alongside your existing car insurance. Effectively, it covers the difference between the total value of your asset (the car) and the amount covered by conventional insurance.

What does Combined GAP Insurance cover?

Combined GAP Insurance is both Finance and Total Loss GAP cover, as a combined product the policy works as follows: -

In the event that your vehicle is deemed a total loss during the period of insurance, this policy will pay the greater of the following, either:

  • The amount which the net invoice price exceeds the Motor Insurance settlement (this amount will be paid to you), or;
  • If the insured vehicle is financed, the amount by which the early settlement balance exceeds the motor insurance settlement (this amount will be paid to the finance company).

Significant Exclusions

  • For any negative equity you have carried over from a previous vehicle
  • Your policy is not transferable to any subsequent owner of the vehicle
  • If your vehicle is being used for any type of competition or rallies, racing, any type of track day, off road, speed testing, pace making or reliability trials, commercial business use of hire and reward including and not limited to taxi, courier services and private hire , emergency vehicle or is being driven by any person not holding a valid current licence to drive your vehicle

At Johnsons Cars, we recommend that all new car buyers invest in a GAP policy, so that the already unsettling experience of a major accident is not made worse by a large financial loss. The salespeople at your nearest Johnsons dealership will be glad to tell you more about the GAP insurance policies we provide.

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Important Information

If within the first 3 years of ownership of your vehicle, your Motor Insurance provides you with a brand new replacement vehicle or replacement vehicle this may affect your ability to claim under the policy.

For details and a full list of all Conditions, Exclusions and Definitions, please refer to the Combined GAP policy terms and conditions.