If you are looking for a flexible policy to protect your fleet from being written off following an accident, gap insurance could be exactly what you need.
What is Gap Insurance?
GAP insurance (Guaranteed Asset Protection) is an insurance policy that is designed to cover the gap between the amount owed on a car and the cars actual value in the event of an accident.
In the event of an accident, vandalism, fire, theft or flood, whereby the vehicle is written off, an insurer will only pay out the market value of the vehicle at the time of the loss.
This could be much less than the outstanding finance left on the vehicle which would result in you being responsible for the shortfall.
‘Top Up’ Fleet GAP will pay the difference between the motor insurer’s settlement figure and the outstanding amount owed to the finance/lease company;
Or 25% of the motor insurer’s total loss settlement figure.
*Whichever calculation is the greater*
Key Features of Gap Insurance for fleets
- Available to Fleets of 3 or more vehicles
- Vehicles up to 10 years old at inception
- Available for cars, commercials and agriculturals up to 44 ton GVW
- Covers vehicles on Lease/Contract Hire, Finance and owned outright
- Vehicles must be insured comprehensively
An Example of Gap Insurance
After a total loss, the insurance company pays out £26,500, however, the termination charge from the leasing company is £27,613.71.
This would leave a shortfall of £1,113.71. Our GAP insurance policy covers the difference between the motor insurer’s settlement and the outstanding amount owed to the finance or lease company or 25% of the motor insurer’s total loss settlement figure – whichever calculation is greater.
Using the example above we pay:- £6,625 (25% of the settlement amount).
Our GAP insurance policy is designed for fleet operators and cover starts from just £65.40 per vehicle. The vehicles we can cover include cars, vans, light goods vehicles and heavy goods vehicles.
Obtain a Fleet GAP insurance quotation in seconds by completing our online quotation form or calling one of our knowledgeable team on 0345 224 5329
Top Up Fleet GAP:
- Applies to vehicles under 10 years old, whether on lease, finance or owned outright (private or dealer sale) inception of the policy.
- Mid-term adjustments can be notified as and when they occur, pro-rata adjustments charged by insurers.
- It is just as important to consider GAP to customers whether they have financed or have purchased vehicles outright.
- Covers both new and used vehicles
- Top Up Fleet GAP is an annually renewable insurance policy exclusive to insurance brokers.
General Exclusions that apply to GAP:
- Finance from another vehicle – Negative equity
- Where a vehicle is replaced under new car replacement extension
- A vehicle if it has been modified outside of manufacturers specification, this is not applicable for commercials and HGV’s where the coach build is deemed to form part of the vehicle.
- HGV trailers or equipment being carried by HGV such as forklift trucks etc.
- Vehicles that are used for track days/rallying/competitive events.
- Any claim where your vehicle has not been declared a total loss.
- Any amount deducted from the motor insurer settlement as a result of failure to properly maintain/service the vehicle.
- Any excess over £250.00
- Vehicles insured under a motor trade policy
- Vehicles not insured comprehensively
To learn more about our gap insurance options, please get in touch with our friendly team. Alternatively, feel free to call us on 0345 224 5329.