Fortunately gap insurance policies have very few exclusions and are very simple policies, however we are asked many times what is not covered and have produced a list of the main points:
- Any claim where the Total Loss is not subject to an indemnity under the relevant sections of Your motor insurance policy.
- Any outstanding premium, claims excess above £1,000 deducted by Your Motor Insurer, claims excess that is recoverable from a third party or other source. If the Motor Insurer reduces the amount They pay to You due to Your contributory negligence or the condition of the Vehicle, We will reduce the amount We pay under This Insurance by the same amount.
- Negative Equity (unless additional premium paid), arrears, the cost of fuel, surrenderable road fund licence, insurance premiums and warranty costs.
- Any claim where You have the option to receive a Replacement Vehicle under the terms of Your Motor Insurance Policy (new for old) in respect of the Total Loss of Your Vehicle. (The balance of this cover can be transferred to the Replacement Vehicle on request free of charge).
- Any claim where the Total Loss occurs outside the Geographical Area or arises as a consequence of war, terrorism or civil commotion.
- Any claim where the Total Loss is caused by an accident when the driver of Your Vehicle is under the influence of alcohol or drugs not prescribed by a registered medical practitioner or drugs prescribed by a registered medical practitioner in respect of which a warning against driving is given.
- Any claim where the GAP loss is covered by any other insurance or warranty, compensation for loss of use of Your Vehicle or any resultant loss of any kind.
- Any claim which is the subject of fraud or dishonesty.
- Most passenger Vehicles or vans up to 3,500kg GVW (Gross Vehicle Weight) can be covered, other than Vehicles that;
- Are not listed in Glass’s Guide;
- Have been previously recorded as an insurance Total Loss;
- Have been modified from the manufacturer’s specification (unless agreed by the Motor Insurer);
- Are used as a taxi or minicab, used for any other type of hire or reward, including peer to peer Vehicle rental & short term rental schemes and emergency Vehicles;
- Are heavy goods Vehicles over 3,500Kg GVW;
- Are mini-buses;
- Are quad bikes or trikes;
- Are used for road-racing, rallying, or any other competitive event;
- Have a Purchase Price in excess of £100,000 (unless agreed by Us in writing) and that are not fitted with a Thatcham or manufacturer approved tracking device.
- Qualifying VAT if You are VAT registered.
While this list is representative of our Return to Invoice Gap Insurance policies, each policy has different variations.
Please see the individual policy wording for full exclusions and terms & conditions before making a decision to purchase.