Van & 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.

Mind the GAP! Avoid a potential shortfall...

On the road price: £
Anticipated length of ownership (years):

ALA GAP Insurance is recommended and awarded by

Do I need Commercial Vehicle 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

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

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)

Can I buy Commercial Vehicle GAP?

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)

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)

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)

In addition for all above policies the vehicle must not be excluded as one of the following:

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. Please see our exclusion list to check your vehicle isn't on the list.

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 Vehicle GAP Insurance Features:

  • Commercial Back to Invoice Plus and Commercial Vehicle Replacement Plus GAP available for up to 4 years
  • Commercial Contract Hire Plus GAP available for up to 5 years
  • We are fully authorised and regulated by the Financial Conduct Authority (FCA) and your policy is covered by the Financial Services Compensation Scheme
  • Pays up to £250 or £500 of your Comprehensive Insurance excess (dependent upon underwriter and confirmed at time of purchase)
  • Cover available for up to 365 days after delivery of vehicle
  • Any personal details amended FREE of charge
  • Policy transfer – pro rata transfer of unused premium if you change your vehicle, with no admin fees
  • Discount available for renewal and additional policies
  • We guarantee to match any comparable online GAP quote

Commercial Vehicle GAP Example

Commercial Return to Invoice Plus Example (With Finance)

*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 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)
view an example without finance
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Commercial Vehicle GAP FAQ

If your van is on hire purchase or PCP finance, where you can choose to own it at the end of the term, or you do so automatically when the last instalment has been paid, then Commercial Back to Invoice Plus or Commercial Vehicle Replacement Plus would be suitable for you.

Alternatively, if the van is on a lease or contract hire agreement, where there is no option to purchase at the end of the term, you would need to select Commercial Contract Hire Plus.

ALA policies can only cover commercial vehicles which have been bought from a VAT registered motor trader or internet broker.

No, we cannot cover any vehicle which is used for the purposes of hire and reward. This includes any form of delivery, including couriers and even if it is the delivery of your own goods.