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Back to invoice car gap insurance (BTI)

Back to invoice new car gap insurance, sometimes referred to as return to invoice new car gap insurance and back to invoice used car gap insurance (or return to invoice used car gap insurance) is a gap car insurance policy which will protect you and your vehicle in the event of it being written off as a result of accident, non-recovered theft or fire.

If you have purchased your vehicle outright, taken out a finance loan or if the vehicle is on a personal contract purchase agreement then a back to invoice car gap insurance policy is an essential part of your insurance protection. For a small outlay you can protect your investment in your vehicle by taking out a gap car insurance policy – back to invoice new car gap insurance, back to invoice used car gap insurance (or, as these policies are sometimes known, return to invoice new car gap insurance or return to invoice used car gap insurance).

If you are unfortunate enough to suffer a “total loss” your motor insurer will only pay you on the depreciated value of your vehicle – which could well be less than the money that you owe on finance, or less than the sum of the loan that you borrowed to purchase the vehicle. A back to invoice car gap insurance policy will take care of any shortfall between the sum your motor insurer pays out and your outstanding balance on your loan, or the amount that you paid in full for the vehicle if you purchased it outright. If you have a personal contract purchase (PCP) agreement your funder may want you to repay a high proportion of the monthly payments – so in any of the above scenarios you could be paying out money for a vehicle which you no longer have the use of. A back to invoice car gap insurance will protect you against these circumstances and prevent you finding yourself seriously out of pocket. Even if you bought your car outright the insurance settlement that you will receive from your insurance company will not be sufficient for you to purchase a new car at the same price. By purchasing a back to invoice car gap insurance policy you will have the peace of mind of knowing that you have protected yourself against serious financial loss.

Let’s take a look at an example:
Back to invoice gap car insurance (or return to invoice gap car invoice):

Original cost of your car£20,000
Deposit paid£2,000
Loan Amount:£18,000
18 months later the car is stolen or written off:
Amount still owing to the finance company£12,000
Your insurer's depreciated value payout £9,000

A back to invoice new car gap insurance or back to invoice used car gap insurance will pay you, the customer and policy holder, the £11,000 difference between the insurance payout and the original cost of the car – taking you back to the invoice value that you originally paid. You will then have sufficient funds to pay off the finance owing and start again with a deposit on another vehicle.

As you can see, your comprehensive motor insurers will not cover you for the price you paid for the vehicle; only for their valuation of the vehicle at the current market price prevailing at the time of the loss (they will call this “the depreciated value”). So unless you have protected yourself with a new car gap insurance policy or a used car gap insurance policy (such as the back to invoice car gap insurance policy example illustrated above) you will find yourself suffering from a shortfall which could potentially cost you a lot of money. Even if you purchased your car outright the insurance settlement which you will receive from your insurers will not be sufficient for you to purchase a new car at the same price. By purchasing a back to invoice car gap insurance policy you will have the peace of mind of knowing that you have protected yourself against a serious financial loss.

New car back to invoice car gap insurance and used car back to invoice car gap insurance are gap car insurance policies that will ensure that you protect the depreciation of your vehicle if you are unlucky enough to suffer a total loss write off – and are car gap insurance policies that your cannot afford to be without.