RTI Finance / Gap Insurance
Return to Invoice (RTI) Guaranteed Asset Protection (GAP) Insurance ensures you receive the price paid for your vehicle – or the value of the outstanding finance – in the event of a total loss claim (write-off).
- Available from £175 for 3 years’ cover
- Covers new and used vehicles up to 10 years old or 100,000 miles
- Suitable for vehicles worth up to £180,000
- Reimburses up to £250 of Car Insurance Excess
In the event of a theft or a write-off, your insurer may only cover the market value of the vehicle. This is likely to be less than the amount you paid, owing to depreciation. Return to Invoice GAP Insurance allows you to recover the amount paid, so you can clear any remaining finance or buy a new vehicle.
Well, Chris Knott Insurance (who runs the C4owners Insurance scheme) has come up trumps again!
Just had my Home Insurance renewal in and they have reduced my premium by £73.44 p.a. (28%) from that quoted at renewal by… Churchill! Oh and the cover is better as well.
Your RTI/Gap Insurance Questions Answered
What is RTI/Finance GAP Cover?
In the event of a total loss, your Comprehensive Motor Insurance policy will only pay you the market value of your vehicle at the time of the loss. However, you may have outstanding finance owing on the vehicle which is greater than that market value. In any case you’ll get back less than you paid for, or owe, on the vehicle.
Return to Invoice (RTI) GAP Insurance covers you for 3 years and gives you back the difference between your motor insurer’s payout and the net purchase invoice price or the outstanding finance amount (whichever is greater) so you can buy another car for the original value.
Chris Knott RTI/Finance GAP Cover costs from just £175 for 3 years’ protection and is available on vehicles valued right up to £180,000.
GAP cover from Chris Knott Insurance starts at just £175 for 3 years’ cover on vehicles less than 10 years old, with fewer than 100,000 miles on the clock.
What does Gap Insurance cover?
Gap Insurance, also known as Guaranteed Asset Protection Insurance, is designed to protect you financially in the event that your vehicle is written off or stolen. It comes into play when there is a significant difference between the amount you owe on your car loan or lease and the actual cash value of the vehicle.
Gap Insurance therefore covers the difference between what you owe on your vehicle and what your insurance company would pay if your vehicle was declared a total loss.
It can be used to cover both new and second-hand vehicles, provided they are less than 10 years old and have covered fewer than 100,000 miles.
What are the different types of Gap Insurance?
There are several types:.
- Replacement Gap Insurance: With this policy, you will receive a payment that covers the difference between the total loss payment and the cost of replacing your car with one of the same make, model and specifications.
- Return to Invoice Gap Insurance: This type of cover pays the difference between the price you paid for your car and the total loss payment offered by your insurance provider.
- Contract Hire Gap Insurance: If you still have outstanding repayments in your car lease agreement, this cover will financially protect you.
- Return to Value Gap Insurance: If you bought your car second-hand, this can be a useful policy because it covers the difference between your insurer’s payout and the value of your car when it was brand-new.
At Chris Knott Insurance, we offer Return to Invoice (RTI) Gap Insurance.
How does RTI Finance GAP Insurance work?
RTI Insurance Example:
- The original vehicle purchase price is £35,000.
- Car Insurance pays £25,000 (the market value) in the event of a total loss.
- RTI GAP Insurance pays out £10,000.
- The GAP Insurance covers the difference in values, so you don’t end up out of pocket.
Simply call your insurer’s claims line in the event of an accident or theft.
Chris Knott RTI/Finance GAP Cover also refunds your motor excess in the event of a total loss, up to £250.
Which vehicles qualify?
Whether you have purchased your vehicle outright or on PCP, personal contract hire or lease – arranging RTI/Finance GAP Cover makes sense and provides valuable benefits at relatively little cost.
Cover is available for cars (and commercial vehicles up to 3,500kg) under 10 years old/100,000 miles – and must be purchased within 100 days of the vehicle purchase.
The cover is not available for kit-cars, invalid carriages, grey/parallel imports or vehicles not built for sale in the UK.
RTI/Finance GAP Cover effectively allows you to remove depreciation from the equation if you suffer a total loss within 3 years of arranging the protection and puts you back in your original position.
Is Gap Insurance worth it?
It depends on your situation and your evaluation of risk.
Cars depreciate in value over time, some more quickly than others. If your car is written-off or stolen, you may find that the payout offered by your insurance company doesn’t completely replace what you paid. If you purchased your vehicle on finance, this could mean that you have to continue making payments for a car that you no longer own. This can make it more difficult for you to afford to buy a replacement car.
If you’d like peace of mind that you will receive financial protection to bridge this payment gap, then Gap Insurance may be worth it for you.
Do I need Gap Insurance?
Gap Insurance may be a good fit for you depending on how you bought your car and how much your car is likely to lose its value over time.
If you used a significant loan to purchase your car, you may want to consider Gap Insurance. This is because it will cover any outstanding payments that may not be met by your car insurer’s payout for your written-off vehicle.
It may also be useful if you have your car on a long-term lease. Losing your car could leave you with a substantial bill should the worst happen.
Gap Insurance may also give you peace of mind if you are worried about your car losing value. A car that has depreciated significantly could mean you get a much smaller payout in the event of a write-off than what you paid for the car.
Do I need Gap Insurance on a lease?
It is not a necessity to have Gap Insurance if you are leasing a car, but it may suit some people. This is particularly the case if you are renting a car long term. Some leases will have clauses on mileage written into the agreement. If your car is written-off or stolen, you may have to pay a substantial bill, which may not be fully covered by your insurance payout.
Does Gap Insurance have exclusions?
Like all forms of insurance, there are exclusions.
To qualify for Gap Insurance, your car needs to be under 10 years old and have done fewer than 100,000 miles. Cars that don’t meet these requirements will be excluded from the policy.
It won’t cover the cost of repairs or damage that doesn’t result in the loss of your car. Gap Insurance will also not cover you if you voluntarily give up your loan or lease. It is designed to come into play if your car is involuntarily lost through theft or accident.
To learn about other possible policy exclusions, speak to your insurer or broker.
How long does Gap Insurance last?
Gap Insurance typically lasts for three years. However, it is best to carefully check your policy and speak to your insurer or broker to make sure you know how long your cover is valid for.
Can you get Gap Insurance at any time?
No, you can’t.
Gap Insurance needs to be purchased within 100 days of buying your vehicle. After this time, you won’t be able to apply for Gap Insurance.
How much is Gap Insurance?
The cost of Gap Insurance is dependent on several factors.
This includes the value of the car you have purchased, how long you would like the policy to be in place for, and your chosen excess.
To get an accurate quote for your RTI Gap Insurance, speak to one of our experienced Car Insurance team members.