GAP insurance policy renewals
GAP insurance is the most beneficial in the first three years of ownership of a new/nearly new car when depreciation is the highest or the amount owed on finance is greater than the cost of the vehicle. Also, GAP insurance policies are limited to vehicles under a certain age and mileage. As a result of these two factors, it is not usually possible to renew your GAP insurance policy for the same vehicle.
Alternatively, should you buy a new car before your policy term has ended, you can use any unused premium towards GAP insurance on your new vehicle or receive a pro-rata rebate payment minus the cancellation fee of £35.
Read more about GAP insurance policy renewals here.
GAP insurance policy cancellations
You are entitled to policy cancellation at any time and for any reason if you have no pending claims.
You may also wish to cancel your GAP insurance policy if:
- You are selling your vehicle and do not wish to transfer your gap contract.
- The amount you owe on car finance has dropped below the car’s market value, and you no longer want the benefits of GAP coverage.
- You repay your loan sooner than expected and no longer want GAP insurance benefits.
With ALA, to cancel your policy, simply contact us to cancel your policy. If you cancel your GAP insurance policy with ALA, you may be entitled to a refund. There are two cancellation periods; the first is the cooling-off period, up to 30 days after the start of your policy. The second is the period after the first 30 days. If you cancel your policy with us within the cooling-off period, you will be entitled to a full refund. If you cancel after 30 days, you can receive a pro-rata refund based on the number of full unused days remaining for the period of insurance. You must also have had neither any successful nor pending claims made at this time.
Read more about policy cancellation with ALA.
GAP insurance policy transferrals
As mentioned, GAP insurance policies cannot be renewed after the term has ended. However, current policies can be transferred under some circumstances at no extra cost. This is possible with ALA, but many GAP insurance providers do not offer or charge a fee for this service.
You will be able to transfer your GAP insurance policy in the following circumstances:
- If the comprehensive motor insurance provider offers a replacement vehicle on a new for old basis in the event of a total loss.
- If you change your vehicle part way through your policy and your new vehicle is eligible for GAP insurance.
- If the vehicle owner changes to a direct family member of the policyholder (depending on the underwriter for your policy).
- If the policyholder passes away, the policy can be transferred to a partner or spouse.
Policy transfers with ALA are generous since there is no cost to transferring your policy, aside from the difference in insurance premium. If you do not need a new GAP policy, you can cancel your policy and receive a pro-rata refund based on the unused premium.
ALA’s flexible GAP insurance policy
The primary purpose of GAP insurance is to minimise any finance gap should the worst happen to your vehicle. In addition to the challenges of your car being declared a total loss, the financial stress of paying for a replacement vehicle could tip the balance. We are committed to avoiding unnecessary costs for this reason.
ALA’s average 3-year policy costs only £5 per month; your policy will only charge you for the agreed policy term, and you are free to cancel your policy whenever you wish, with generous refunds. Also, with ALA, you are not tied down to one vehicle; you have plenty of options if you want to transfer your policy onto a new car before your term ends. ALA also allows much more time to make a claim than most GAP insurance companies because we know that life can get complicated.
GAP Insurance for over 35 Manufacturers including Audi, BMW and Land Rover