GAP Insurance

What does it mean and how does it work?

GAP or Guaranteed Asset Protection insurance.

In the event of a total loss of your car and your insurance company decides to write off your car, your insurance company will make you an offer based on what they think your car is worth at that time.

For customers who have their car on finance, this would be used to pay off the finance outstanding on the written off vehicle. In the event of the amount of finance being more than the offer from the insurance company, this is where you could be left with an outstanding amount also known as GAP. This is where GAP insurance is used to bridge the gap between the amount of money the insurance company has offered to the amount of money outstanding on your finance agreement.

Please see the video which is included on this page for some more information about GAP Insurance.