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Van & Commercial Vehicle GAP Insurance

Vehicle Value

£

Length of ownership (years):

You’d be short!

£10,450
Only £8,550

would be covered by your
Comprehensive Car Insurance

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What is Commercial Vehicle GAP Insurance?

What is Commercial Vehicle GAP Insurance?

Commercial Vehicle GAP Insurance for your van, light commercial vehicle or pickup can protect you in the event of a total loss.

Commercial Return to Invoice GAP will, in the event of a total loss, pay the difference between the comprehensive insurer’s settlement and the original invoice price of your vehicle or the finance settlement figure, whichever is higher at the time.

Commercial Vehicle Replacement GAP will instead cover the difference between your motor insurer’s settlement and the replacement cost of a vehicle matching the original at the time of purchase, or the outstanding finance balance, whichever is higher.

If the vehicle is on a lease or contract hire agreement, Commercial Contract Hire GAP will cover your liability under the contract by paying up to 100% of the outstanding rental payments for the vehicle and cover any shortfall in the market value settlement provided by the insurer. For an additional premium, you can also protect the initial rental on the agreement up to a maximum of £3,000.


Do I need Commercial Vehicle GAP?

When to choose Return to Invoice GAP

When to choose Vehicle Replacement GAP

When to choose Commercial Contract Hire GAP

When to choose Return to Invoice GAP

With Commercial Return to Invoice, the answer to this is yes, if you want to:

Protect the price you paid for your van and cancel out the effects of depreciation

Be paid more than just the market value settlement at the time of a total loss

Have enough money to clear any outstanding finance in the event of a total loss AND be left with any amount remaining once this has been paid

When to choose Vehicle Replacement GAP

With Commercial Vehicle Replacement, the answer to this is yes, if you want to:

Protect against the depreciating value of your vehicle

Protect the value of your vehicle, not just what you paid for it

Protect against potential rising costs of buying the same vehicle again

When to choose Commercial Contract Hire GAP

With Commercial Contract Hire GAP, the answer to this is yes, if you want to:

Cover your liability under the contract hire agreement if your vehicle is a total loss

Be able to get a new vehicle on a new agreement with no debt from the previous agreement

Receive back your deposit/initial rental (if you select Initial Rental cover)

Return to Invoice eligibility

Vehicle Replacement eligibility

Contract Hire GAP eligibility

Return to Invoice eligibility

With Commercial Return to Invoice, the answer to this is yes, if:

Your vehicle is less than 10 years old

You have owned it for less than 180 days OR less than 365 days if you have new for old cover from your motor insurer while the vehicle is less than 12 months old

Your vehicle was purchased from a VAT registered dealer

Your vehicle is owned outright OR on a Hire Purchase (HP) or Personal Contract Purchase (PCP)

Vehicle Replacement eligibility

With Commercial Vehicle Replacement, the answer to this is yes, if:

Your vehicle is less than 7 years old, with fewer than 80,000 miles

You have owned it for less than 90 days

Your vehicle was purchased from a VAT registered dealer

Your vehicle is owned outright OR on a Hire Purchase (HP) or Personal Contract Purchase (PCP)

Contract Hire GAP eligibility

With Commercial Contract Hire GAP, the answer to this is yes, if:

You have a lease or contract hire agreement, with no option to buy at the end of the agreement

Your vehicle was collected in the last 365 days

Your vehicle is on a lease, contract hire, finance lease agreement or similar, where there is no option to buy the vehicle at the end of the term (there may be a requirement that the vehicle is sold to a third party)

Exclusions from Commercial Vehicle GAP

Unfortunately we do not offer GAP insurance cover for any taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle or any rally, competition or off-road vehicle of any type.

Unfortunately we do not offer GAP insurance cover for any Commercial Vehicle over 3500kg, Motorcycle, Motor Scooter or Moped. Any left hand drive vehicle and a vehicle which does not meet UK or EC approval or is not commercially available in the UK direct from a manufacturer or its authorised importer or dealer.

Any taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle or any rally, competition or off-road vehicle of any type.

Commercial GAP Insurance Examples

Covered

£14,000

Shortfall

£5,000
*Example shows the amount covered by your Comprehensive Vehicle Insurance (based on average depreciation rates and current market value) and the potential shortfall if your vehicle is written off.
Return to Invoice
Vehicle Replacement
Contract Hire
Your invoice value of: £18,000
The amount owed to the finance company at the point of claim: £19,000
Your comprehensive market value insurance payout: £14,000
Our Return to Invoice Plus payout: £5,000
Comprehensive Insurance payout + ALA GAP Insurance payout = £19,000
(Leaving you clear of any owed finance on your vehicle)
Your invoice value of: £18,000
The amount owed to the finance company at the point of claim: £19,000
Your comprehensive market value insurance payout: £14,000
Our Return to Invoice Plus payout: £5,000
Comprehensive Insurance payout + ALA GAP Insurance payout = £19,000
*Example shows the amount covered by your Comprehensive Vehicle Insurance (based on average depreciation rates and current market value) and the potential shortfall if your vehicle is written off.
Your vehicle value: £18,000
The amount owed to the contact hire finance company to end the finance agreement: £16,000
Your comprehensive market value insurance payout: £9,000
Our Contract Hire Plus payout: £7,000
Comprehensive Insurance payout + ALA GAP Insurance payout = £16,000
*Example shows the amount covered by your Comprehensive Vehicle Insurance (based on average depreciation rates and current market value) and the potential shortfall if your vehicle is written off.

FAQs

I’m looking at a Return to Invoice quote. What does “Invoice price of vehicle including deposit” mean? What should I include in this?

For the purposes of a quote please use the invoice price of the car including manufacturer fitted extras. Please also include dealer fitted extras; depending upon the policy underwriter, these are either unlimited or covered up to a maximum of £1,500 including VAT (this will be confirmed in the policy documents on the quote page and following purchase).

Deduct any dealer or manufacturer discount (including deposit allowances, concessions, cashback, incentives or contributions).

Please also don’t include: Interest charges, manufacturer delivery charges, paint/upholstery protection, fuel, road fund licence, warranty costs, administration fees, insurance, service plan costs, arrears and negative equity. These costs are not covered by the policy.

If you would like any assistance with a quote, please contact our team on 01653 916304

What is the difference between Return to Invoice and Vehicle Replacement?

Return to Invoice Plus will cover the difference between your motor insurer’s settlement and either your invoice price or outstanding finance – whichever is greater at the time of a write off.

The Vehicle Replacement Plus policy would pay the difference between your motor insurer’s settlement and either the replacement cost of a vehicle of the same make, model, age and specification as the original vehicle or the outstanding finance, again whichever is greater at the time of a write off.

I bought my vehicle from a private individual, can I still have GAP insurance?

The Return to Invoice Plus policy is not suitable for cars purchased from a private seller. Instead we may be able to offer you an Agreed Value GAP quotation.

Is there anything which shouldn’t be included in the invoice price and so would not be covered by the ALA GAP policy?

There are some things that the policy does not cover which includes, but is not limited to: delivery cost, first registration fee, extended warranty charges, insurance products, service plans, arrears negative equity, administration fees, fuel, road fund licence and paint/upholstery protection.

If you would like further advice about whether to include something in the vehicle price, then please call us on 01653 916304