GAP insurance requirements
There are some general requirements for GAP insurance with ALA and some more specific requirements for each type of GAP insurance that we offer.
For GAP insurance with ALA, your vehicle must be registered in the UK, must not be left-hand drive and must be in the Glass’s Guide. GAP insurance with ALA excludes selected vehicles and vehicles by selected manufacturers.
Your vehicle must not have been declared a write-off previously to purchasing GAP insurance and the policyholder must also be the vehicle owner or the registered vehicle keeper. ALA requires that vehicle owners have comprehensive UK car insurance, and we request that you do not accept a settlement from your motor insurer before contacting your GAP insurer.
Back to Invoice plus requirements
Back to Invoice plus insurance requires that your vehicle is less than 10 years old and has been inured within 180 days of being delivered (365 days if the vehicle is less than 12 months and is covered new for old by your motor insurer for that year). Back to Invoice insurance covers vehicles up to the value of £125,000 and vehicles must have been purchased from a VAT-registered car dealer.
Vehicle Replacement Plus requirements
Vehicle Replacement Plus requires that your vehicle is less than 7 years old and less than the value of £150,000. Your vehicle must not have exceeded a mileage of 80,000, and you must have collected the vehicle from a VAT-registered car dealer within 90 days of insuring with ALA. Finally, you must have purchased your vehicle outright, on Hire Purchase or Personal Contract Purchase.
Contract Hire plus requirements
You must be leasing your vehicle with no option to buy; you must have collected your lease within 365 days and the vehicle is less than 10 years old. Eligible vehicles must be valued below £125,000.
Agreed Value GAP insurance
Agreed Value insurance is for vehicles purchased from a private seller, for those with an expired GAP insurance policy or those who have exceeded required time restrictions. Your GAP insurance pay-out will be based on the Glass’s Guide value of your vehicle at the time of purchasing your GAP insurance.
Read more about GAP insurance requirements here.
GAP insurance calculations
GAP insurance is calculated differently depending on which type of insurance applies to your vehicle.
Back to Invoice calculations
For this type of GAP insurance, the type, age and original cost of the vehicle are taken into consideration. Also, the anticipated length of ownership, how long you want the vehicle to be covered for and how you paid for the vehicle is also considered. ALA will cover the difference between the amount paid out by your comprehensive insurer and the amount you originally paid for you vehicle (including any outstanding car finance).
Vehicle Replacement calculations
Vehicle Replacement insurance will cover difference between the pay-out by your comprehensive insurance provider and the cost of an equivalent replacement. This type of insurance allows you to avoid a shortfall if the value of your car (new) is now higher than when you bought it. Vehicle Replacement insurance may cover the outstanding finance on your vehicle if this value is higher than the cost of replacing the vehicle.
Contract Hire calculations
This type of insurance for leased vehicles takes the value of the car and the amount you are paying to the lender monthly. This plan takes into account the possibility that the lender may request 100% of finance in the event of total loss. ALA will cover the difference between the amount owed to your finance company and the amount paid out by your comprehensive motor insurer.
The GAP insurance pay out is calculated based on Glass’s Guide retail value of the vehicle. The difference between the retail value at the time of purchasing GAP insurance and the pay-out by your comprehensive motor insurer will be offered by ALA on this type of insurance.
Read more about GAP insurance calculations here.
GAP Insurance for over 35 Manufacturers including Audi, BMW and Land Rover
GAP insurance documents
ALA will provide you with two policy documents – your Policy Wording and an IPID. The Policy Wording includes comprehensive coverage of all the terms and conditions for your policy, including, eligibility, exclusions/restrictions, the claims and complaints procedure and cancellation. The IPID provides a summary of GAP coverage, restrictions, obligations and more. We recommend that you thoroughly read through both documents before beginning a policy with us so that you will understand your GAP insurance coverage, restrictions, and obligations once you begin your policy.
Read more about understanding your ALA policy documents here.
Making a claim
After a total loss incident and once your comprehensive car insurance company has provided an offer, you must contact ALA before accepting this settlement.
You must submit your claim to ALA within 120 days of the incident that resulted in a total loss. ALA may not fully pay out if you fail to claim within the required timeframe, however, if you need an extension, you may request one.
A non-exhaustive list of ALA GAP insurance claim requirements may be as follows:
- Purchase invoice/order
- Finance agreement
- Settlement statement for finance agreement
- Motor insurance certificate
- Copy of motor insurance settlement
- Policy wording