Manchester: 0113 387 4243 | Birmingham: 0121 289 3449

No motorist ever wants to see his or her car written-off or stolen. But if you’re unlucky enough to have to say goodbye to your car in such circumstances, you can at least ease the financial pain by having ‘gap’ insurance cover in place.

What is GAP Insurance?
GAP (Guaranteed Asset Protection) is a type of insurance often sold alongside finance deals when buying a car. It covers the difference between the value of the car at the time of purchase and the amount of the insurance settlement in the case of a write-off. You can find more about GAP insurance by watching the video below.


Why Would I Need Gap Insurance?
Imagine you buy a new car on finance for £10,000. After a years’ ownership you are involved in an accident and the car is written off. The ‘book’ price for the car is now £8,750, so that’s the amount your insurance company will pay out. However, what if you bought the car on a finance deal which had more than £8,750 outstanding? You’d lose money. This is what GAP insurance protects against.


Here at AMT Specialist Cars we offer two types of GAP insurance:

  1. RTI (Return of Invoice) insurance pays out the difference between the amount you paid for your car and the amount the insurance company say it’s worth now. For example in our situation illustrated above, the GAP insurer would pay out £1,250 (initial value of the car was £10,000 and ‘book’ price is £8,750).
  2. Finance shortfall insurance ensures that you don’t have any finance outstanding on your written-off car after you make a claim. However, it differs from RTI in that it doesn’t give you any money back, it only covers outstanding finance.

For more information on the type of cover that we provide, visit our showroom or contact us here.