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Frequently Asked Questions

Is the figure quoted a one off payment or an annual premium?
Yes, the figure quoted is the total cost for the policy.

How much cover do I need?
If the car is on a lease (contract Hire), it is worth checking with the leasing company their policy on charges if the contract is settled early. Many leasing companies charge 50%-60% of outstanding rentals whilst some will charge you 100% of outstanding rentals.

Purely as a guide, you could assume a vehicle 2 years old would be worth about 65% of its original value, for 3 years you could assume 45% - 50% and for 4 years you could assume 35%-45%

I own the car and have it insured in my name but my husband is a named driver. Is he covered?
Our GAP Insurance Policies cover all named drivers on your motor insurance policy.

Is the insurer UK based?
Yes, Guarantee Protection (GPI) Ltd are a UK based insurer, fully authorised and regulated by the FSA, their FSA number is: 207658

I own the car but am not the main user on the insurance policy, who's name do I apply in for GAP?
The registered owner or keeper or a named driver on the Fully Comprehensive cover needs to be the applicant for the GAP insurance policy

Which policy should I buy if my car is on finance?
If the car were on a purchased based finance arrangement, Back to Invoice+ or Vehicle Replacement Insurance would be appropriate. Back to Invoice+ will either pay back to your invoice price or settle the finance - whichever the greater. With a Vehicle Replacement Insurance, although the agreement may need to be settled, you will receive the full value of a replacement vehicle up to 105% of the original full retail value.

Is Finance GAP the same as Contract Hire GAP?
This depends on the supplier but you really need to double check the small print. Our contract hire GAP is specifically for contract hire and can cover up to 100% of outstanding rentals.

When do I have to take out a GAP Insurance policy?
You must apply for a GAP Insurance policy within 180 days of delivery of your vehicle, irrespective if your primary insurer offers a replacement facility in the first year. In this case, providing you make a claim in the first year, we will transfer the whole policy to the replacement vehicle.

I own my car outright, which GAP Insurance do I apply for?
If your car is new or up to 3 years old we are able to offer you Vehicle Replacement Insurance - this policy replaces new for old or to the age of the car that you originally insured. For new or used cars, we would also suggest Back to Invoice+ - pays the difference between the primary insurer's market value settlement and your original invoice price.

Am I covered for theft if the keys are stolen from my house?
This is an important question, as some GAP policies do not provide cover in this instance. All our GAP Insurance Policies do cover you if your house is broken into and your car keys stolen.

Will my comprehensive insurance company pay off the finance house if my car is written off?
Your primary insurer will normally pay you the current market value of the car and that is all. If this is insufficient to clear any outstanding finance, you will still need to clear the outstanding balance.

Is my GAP Insurance protected?
The insurer of these policies, GPI Ltd, is authorised and regulated by the Financial Services Authority (FSA) which means that your policy is protected under the FSA Compensation Scheme.

I bought my car from a private individual, can I still have GAP insurance?
We are able to offer Agreed Value GAP in this instance but not any other type of policy.

I bought my car more than 180 days ago, can I still buy GAP Insurance?
Unfortunately not unless you are looking to extend or renew a policy in which case we are able to offer you an Agreed Value Gap policy.

Is my car covered for GAP Insurance if I take the car abroad?
Yes, so long as you comply with any restrictions your Fully Comprehensive Policy enforces for a UK registered and domiciled car, then the GAP Insurance will be valid. Please note that GAP Insurance only pays out if the primary insurer accept the insured loss under a fully comprehensive policy.

Is Finance gap the same as Contract hire gap?
This depends on the supplier but you really need to check the small print. ALA contract hire GAP is specifically for contract hire and can cover up to 100% of outstanding rentals.

I own my car outright, which GAP insurance do I need?
If your car is new or up to 3 years old we are able to offer you vehicle replacement insurance, this policy replaces new for old or to the age of the car that you originally insured. For new or used cars, we would also suggest back to invoice +, paying the difference between primary insurer's market value settlement and your original invoice price.

How much GAP cover do I need?
If the car is on a lease(contract hire), it is worth checking with the leasing company their charges if the contract is settled early. Many leasing companies charge 50%-60% of outstanding rentals whilst some charge you 100% of outstanding rentals.
Purely as a guide, you could assume a vehicle 2 years old would be worth about 65% of its original value, for 3 years you would assume 45-50% and for 4 years you would assume 35-45%.This is based on average mileage and average wear and tear on the vehicle.

Is my GAP insurance policy protected if the insurer goes bust?
The insurer of these policies, GPI Ltd, is authorised and regulated by the Financial services authority.If GPI ltd is unable to meet its obligations under this insurance you may be able to claim compensation under the the financial services compensation scheme (FSCS) the first £2000 of a claim is protected in full .For amounts above this threshold, 90% of the remainder will be met.

I bought my car from a private individual, what type of GAP insurance can I purchase?
We are able to offer Agreed Value GAP in this instance but not any other type of policy.

Is agreed value GAP the same as Comprehensive car insurance?
No, Agreed Value GAP(AVG) is not your car insurance. This type of GAP insurance will, in the event of total loss, cover the difference between your comprehensive insurance settlement and the Glass's Guide retail valuation of your car at the time you took out the AVG policy.

Does the £250 contribution to my Comprehensive Insurance pay out on every claim that I have?
No, the limit of £250 is only paid out in the event of total loss claim.This is a maximum amount, if your excess is £150, we pay you £150.

Is there a minimum age I can buy GAP Insurance?
Seventeen with a provisional or full driving licence on a fully comprehensive insurance policy.

I have bought a car for my daughter and plan to pass ownership to her at a later date, will the GAP Insurance remain valid?
Whilst the car is owned by you, the GAP Insurance needs to be taken out in your name and your daughter will need to be a named driver on your Fully Comprehensive policy. When passing ownership of the car to your daughter, you have to remain as a named driver on her Fully Comprehensive policy, otherwise the policy will lapse.

My Comprehensive Insurer is offering 'me a new for old' replacement for the first year, why do i still need GAP insurance in the first year?
In order that we can replace the vehicle 'new for old' for up to 4 years the policy has to be purchased within 180 days of delivery. In the event of a total loss claim in the first year, we will transfer the whole of this policy on to your replacement vehicle. You also need to consider that your insurer may not replace your vehicle due to a clause within the policy e.g. there will be a maximum pro rata mileage allowance and if this is exceeded, the policy could just pay you the current market value.

Some competitors of ALA will defer the start of a vehicle replacement policy for the first year to coincide with my comprehensive insurer's offer of a 'new for old' replacement for the first year - why doesn't ALA?
If your GAP policy is deferred for 12 months, you have a total loss claim and your Comprehensive Insurer refuses to replace new for old due to a breech of a clause, it is most unlikely that the GAP Insurance policy will activate either - leaving you with no GAP cover whatsoever!

Why do I need GAP Insurance?
GAP Insurance is designed to protect you against financial loss.In the event of a total loss claim, your comprehensive insurer will only pay you market value for your car, leaving you exposed to any remaining finance settlement charges or the substantial loss suffered with vehicle value depreciation. If your car is on contract hire or a non-regulated purchase agreement, you may be faced with a bill of up to 100% of the outstanding payments.

Are there any instances where GAP insurance doesn't pay out?
Yes, if your Fully Comprehensive Insurance provider refuses your claim, the GAP insurance will not settle. Two examples of this may be if you leave the keys in the ignition and the car is stolen or if you cause the vehicle to be written off under the influence of drugs or alcohol.

I bought my car through the Motability scheme, can I buy GAP Insurance?
So long as the car has been financed on Hire Purchase, we can supply Back to Invoice+ GAP Insurance.

I have leased my car through the Motability Scheme, can I buy GAP Insurance?
No, unfortunately we currently do not have a GAP policy that we can supply for this type of financial arrangement.

Is it free to transfer my policy should I change my vehicle within the length of the policy cover?
Yes it is,we will transfer the balance in monetary terms from your old policy and take this off the balance of the new policy.

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