Simple - have your vehicle written off without GAP (Guaranteed Asset Protection) Insurance and you could end up thousands of pounds out of pocket and in some circumstances without a car.

Having just taken delivery of your new car from the dealership the last thing that's going to be on your mind is what happens if you have an accident or if the car is stolen and you find yourself in the position that your insurance company writes off the vehicle. Most people assume (often wrongly) that the insurance payout will be enough to cover the cost of replacing their vehicle like for like, unfortunately when a new car leaves the dealership depreciation is at its highest level and more often than not the amount paid by the insurance firm will be significantly less than the price you paid for your new car, this difference is known as the “gap” or alternatively negative equity. The insurance company will pay you what the vehicle is (currently) worth, and that is not necessarily the same as what you paid for the car.

RTI GAP Insurance is the most popular form of GAP Insurance that is purchased today.

As a result of your car being written off, RTI GAP Insurance will pay the discrepancy between your Motor Insurance Payout and the amount that you originally paid for the car.

RTI GAP Insurance is offered to cover New or Used vehicles with a worth of up to £75,000 and is required to be taken out no later than 180 days following delivery of the vehicle.

How does RTI GAP Insurance work?

If we say you purchase a new car for £19,995.00

Two years later, your Motor Insurance Company declares the vehicle a write off and they only offer you £10,000.00.

As a result of this happening, RTI GAP Insurance would pay the £9,995 difference between your Motor Insurance payout (£10,000) and the original invoice price you paid for the vehicle (£19,995).

If the vehicle was purchased by way of a Finance Agreement, in most cases (not all), receiving the total original invoice price back will allow you to clear the outstanding balance of your Finance Agreement and have funds left over to put towards the new vehicle.

(Subject to the overall policy claims limit that you select when you take the policy out)