GAP Insurance

GAP Insurance

GAP Insurance helps protect you from financial loss if your vehicle is written off due to an accident, theft, or fire.

If your motor insurer's payout is less than the amount required to settle your finance or lease agreement, or to replace your vehicle, GAP Insurance can cover the difference — helping you avoid being left out of pocket at the end of your agreement.

What type of GAP insurance is best for you?

RTI GAP Insurance

Bettersafe.com's Return to Invoice (RTI) and Financial Shortfall GAP Insurance protects you from financial losses in a total loss scenario, whether you own or finance your vehicle. Gain peace of mind knowing you're covered for depreciation and outstanding payments.

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Lease / Contract Hire GAP insurance

Lease/ Contract Hire GAP insurance pays the difference between the comprehensive insurance settlement and the amount of outstanding rentals as well as any shortfall in the vehicle value in the event of a total loss claim. Suitable for new and used vehicles on contract hire, delivered within the last 365 days.

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Feature	Return to Invoice (RTI) GAP Insurance	Lease / Contract Hire GAP Insurance
Designed for	Vehicles purchased outright or with finance (HP, PCP, conditional sale, loan)	Vehicles leased or contract hired
Protects against motor insurance shortfall after a total loss	Yes	Yes
Cover the difference between motor insurer payout and original invoice price	Yes	No
Covers finance settlement shortfall relating to the vehicle purchase price	Yes	Yes
Covers outstanding lease settlement following a total loss	No	Yes
Covers early termination charges	No	Yes
Helps clear the finance agreement after a write-off (subject to limits)	Yes	Yes
Provides funds specifically intended to help replace the vehicle	Yes	No
Suitable for new vehicles	Yes	Yes
Suitable for used vehicle up to 10 years	Yes	Yes
Covers administration charges, arrears or additional finance not related to the vehicle price	No	No
Policy term available	1-4 years	1-5 years
Policy must be purchased within:	90 days of vehicle purchase	180 days of lease start
Cash purchase or private sale	No	No
Minimum vehicle value	£5,000	£5,000
Maximum vehicle value	£125,000	£125,000

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What Is RTI and Financial Shortfall GAP Insurance?

Return to Invoice (RTI) and Financial Shortfall GAP Insurance ensures you are financially protected if your vehicle is declared a total loss due to theft, fire, or accident.

This coverage bridges the gap between your motor insurance settlement and:

• The original purchase price of your vehicle (RTI), or

• The outstanding finance amount owed to your finance company (Financial Shortfall).

• Excess Cover included up to £500.

What Is Lease / Contract Hire GAP Insurance?

It ensures you are financially protected if your vehicle is declared a total loss due to theft, fire, or accident.

This coverage bridges the gap between your motor insurance settlement and the outstanding amount owed to your lease or contract hire company.

The GAP policy also offers optional cover for your deposit or initial rental of up to £3,000.

What Vehicles Qualify for GAP Insurance?

• Cars
• Both new and used up to 10 years old.
• Minimum value of £5,000.
• Maximum value of £125,000.
• Must be acquired through a recognised motor dealer or finance company.

What Is Covered?

1. RTI and Financial Shortfall Coverage:

• In the event of a total loss, a GAP policy covers the greater of the amount:
• by which the Purchase Price exceeds the exceeds the motor insurance settlement figure (RTI); or
• by which the finance company settlement exceeds the motor insurance settlement figure (Financial Shortfall); or
• equal to the premium paid for a GAP policy.
• All the above are subject to the claim limit shown in your Policy Schedule.

• Excess Cover:

  • Reimbursement of your motor insurance excess up to £500 per annum if it cannot be recovered from a liable third party.

• Temporary Replacement Vehicle Contribution:

  • You will be provided with a temporary replacement vehicle for up to 30 days after a total loss.

Do I Need GAP Insurance?

Consider GAP Insurance if:

• You purchased a brand-new car: New vehicles lose value quickly, with depreciation of up to 60% within three years. GAP Insurance protects against this loss if your car is written off.
• You financed your vehicle (not leased). If you owe more to your finance company than the vehicle's current value, GAP Insurance ensures the outstanding balance is covered.
• You want peace of mind: Without GAP Insurance, you could face significant out-of-pocket expenses to replace your vehicle or settle finance agreements after a total loss.

GAP Insurance may not be necessary if:

• You bought a used car that has already depreciated significantly, and the market value closely matches your purchase price.
• You have the savings to cover any potential shortfall in the event of a total loss.

Policy Terms and Duration

The policy lasts for the term detailed on your policy schedule, with the maximum term as follows:

• Up to 48 months for Return to Invoice and Financial Shortfall GAP coverage.

The policy ends at the earliest of:

• Settlement of a total loss claim,
• Sale or transfer of the vehicle (unless transferred to a family member), or
• The policy's end date, as stated in your policy schedule.

What Is Not Covered?

Our GAP Insurance does not cover:

• Vehicles older than 10 years.
• Vehicles purchased for less than £5,000 and greater than £125,000.
• Left-hand Drive and certain luxury sports or high-performance vehicles.
• Vehicles not registered in the UK, Channel Islands or Isle of Man or grey imports.
• Vehicles used for:
  • Hire and reward (e.g., taxis, couriers, driving tuition).
  • Competitive events (e.g., track days, racing, rallying).
  • Commercial vehicles exceeding 3.5 tonnes.
  • Negative equity (rolled-over debt from a previous finance agreement).
• Costs not included in the vehicle purchase price (e.g., delivery fees, road tax, or fuel).
• Arrears, late payment charges, negative equity or additional finance unrelated to the vehicle purchase price.
• Damage not directly related to a total loss claim.
• Situations where the motor insurer offers a replacement vehicle under its policy.

This is not a full list. Please see the policy terms and conditions for full details on what is not covered.

All claims are subject to policy terms, conditions, eligibility criteria and the maximum benefit shown in your policy schedule.

How Do I Make A Claim?

1. Check your policy schedule and policy terms. Ensure you are aware of any exclusions which may apply and that you understand them.

2. Notify the claim. Contact the Claim Administrator as soon as you become aware of a potential total loss and BEFORE you accept any settlement offer from your comprehensive motor insurance:

The contact details for the Claim Administrator are here

3. Not our but the Claim Administrator will provide you with a claim form. Complete all sections of the claim form, ensuring any sections to be completed by others are filled in.

4. Return all required information to the Claim Administrator.

Important: the claim form and any other information the Claim Administrator may reasonably require must be received within thirty (30) days of the date of loss of the insured vehicle. If it isn't, your claim may be affected.

Why Choose Bettersafe GAP Insurance?

Bettersafe.com's Return to Invoice / Financial Shortfall and Lease Contract Hire GAP insurance products you from financial losses in a total loss scenario, whether you own or finance your vehicle.

Gain peace of mind knowing you're covered for depreciation and outstanding payments.

What type of GAP insurance is best for you?