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).

WHAT IS INSURED?

In the event of a Total Loss, this policy will pay the following:

1) The greater of:

• The difference between the insured value and the purchase price of your vehicle (Return to Invoice); or
• The difference between the insured value and the finance company settlement figure, if any (Financial Shortfall); or
• the amount equal to the premium you paid for this policy.

* Purchase price is the amount paid to purchase the vehicle, including any factory fitted options and dealer fitted accessories up to £1,500 including VAT but excluding any discount and/or contribution and all other items listed under the definition of 'Purchase Price' in the policy terms and conditions.

The maximum benefit payable under this section of the policy is the purchase price of the vehicle, up to a maximum of £50,000.

AND

2) The motor insurance excess up to £500 where it cannot be recovered from any liable third party.

AND

3) A contribution towards a temporary replacement vehicle. This will be limited to a maximum of thirty (30) days and a maximum of £30 per day, inclusive of VAT.

Additional Excess Cover

In the event of a successful claim under your motor insurance policy that does not relate to a total loss, this policy will reimburse the applicable excess, up to a maximum aggregate limit of £500 per policy year.

WHAT IS NOT INSURED?

Any discount and/or contribution, delivery charges, number plates, road fund licence, new vehicle registration fee, administration fees, fuel, paintwork and/or upholstery protection kits, cherished number plate transfers, insurance premiums (including for this policy), subscription charges or warranty charges.

Any finance arrears and associated costs, any negative equity and any VAT if you are VAT registered and able to reclaim the VAT element.

Any amount relating to grants, scrappage schemes, cash back schemes and battery hire or leasing.

Any deductions made by the comprehensive motor insurance provider for any damage not associated with the total loss claim or general condition of the vehicle.

Any claim where the comprehensive motor insurance provider has offered to repair the vehicle and you have requested the claim to be dealt with on a total loss basis.

Where you are entitled to or are offered a replacement vehicle under the terms of the comprehensive motor insurance, no Return to Invoice or Financial Shortfall GAP benefit will paid by us.

Where the vehicle is covered under any type of comprehensive motor insurance connected with the motor trade.

Where the vehicle or the driver is not covered by comprehensive motor insurance at the date of loss.

Any additional costs of charges incurred as a result of entering into an

agreement with a third party for a temporary replacement vehicle.

Any additional excess reimbursement where:

• the value of the claim does not exceed the excess under your motor insurance policy; or
• the excess was waived or reimbursed; or
• the motor insurance claim was for glass repair or replacement or for damage which occurred during routine servicing or repair.

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.

Make an Enquiry

How GAP Insurance works if you finance or lease a car

How GAP Insurance works if you buy a car outright

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.