If you’re looking for an auto insurance policy, there are a number of things you’ll need to consider. Your auto insurer will cover damage to your vehicle in the event of an accident and injuries you cause to others and your property.
Secured Asset Protection (Gap) Insurance is designed to cover the difference between the value of your vehicle when you bought it and the settlement figure your auto insurer would provide you after you file a claim.
Reading: What does gap insurance not cover
While gap insurance might help protect you from a financial shortfall if your vehicle is written off, there are some exclusions and restrictions to cover that you should be aware of before purchasing a policy.
In this guide, we’ll look at some of the things a gap insurance policy won’t cover and how to use this information when choosing the best type of gap insurance for you.
exclusions from differential insurance coverage
After reading what’s included in a gap insurance policy, you should familiarize yourself with the policy’s exclusions. these include:
any vehicle not covered by comprehensive auto insurance.
Any vehicle that has been modified in a manner outside of the manufacturer’s specifications. this includes engine improvements.
Vehicles over a certain age: For example, vehicles over 10 years old are not eligible for our bill return plus gap insurance. vehicle age limits may differ from policy to policy.
Vehicles above a certain value: For our gap insurance replacement vehicle, for example, this figure is £150,000. again, this limit may differ from policy to policy.
vehicles with a certain mileage: For our agreed value gap insurance, for example, the limit is 100,000 miles on the clock.
any vehicle that does not appear in the glass guide. Examples of vehicles that fall into this category include vintage cars, modified cars, and kit cars.
ferraris, lamborghinis, maseratis, rolls royces and other luxury cars.
any gray import: these are vehicles imported into eu member states from non-eu countries that do not have full vehicle type approval from the european community ( ecwvta).
Any left-hand drive vehicle or American import.
emergency vehicles, coaches, trucks, motorhomes and trailers, breakdown recovery vehicles, taxis and private hire and reward vehicles, courier vehicles or off-road vehicles. however, some providers may offer this coverage as an add-on.
race or rally cars, vehicles used for timed or untimed track days, speed test or pacer vehicles, and any other type of vehicle used for competitive purposes.
In addition, gap insurance will not cover vehicle delivery fees, service plans, extended warranties, first registration fees, and will not cover negative equity carried over from a prior financing agreement.
gap insurance coverage restrictions
Like all insurance policies, gap insurance comes with restrictions:
You will only be eligible for cover if you are a permanent resident of the UK, the Isle of Man or the Channel Islands. You must also hold a valid provisional or full UK driving licence and be the policyholder or person named on the comprehensive motor insurance for the vehicle in question.
Our policies will not cover car insurance excess over £250.
Our policies will not provide coverage if the accident or total loss of your vehicle is caused by your direct or indirect participation in a crime.
It will also not cover for death, bodily injury or damage to any person or property as a result of the total loss of your vehicle. these damages are covered by your auto policy and are excluded from gap coverage due to liability issues.
Your gap insurance coverage will not be paid if your comprehensive auto insurance provider has denied your claim.
We will also not pay a claim if your comprehensive auto insurer offers to repair your vehicle but you have elected to have this treated on a total loss basis.
The policy will not cover the cost of damage incurred if you incorrectly filled your vehicle with the wrong fuel.
A gap policy will not cover damage to the vehicle’s paint and upholstery, or any modifications unless the vehicle is specifically designed for a disabled driver .
Another restriction worth noting is auto insurers’ ‘new for old‘ replacement service for new vehicles that are less than 12 months old. We’d still recommend having a gap policy along with this, as your insurance provider might go back to paying only market value if the vehicle is stolen, for example.
If you have gap insurance on this vehicle but are entitled to a replacement vehicle on your auto insurance policy, you can transfer the remaining coverage on your gap policy to your replacement vehicle.
choosing the right differential insurance policy for you
There are several different types of gap insurance available. Which one is right for you will depend on several factors, including the age and value of your vehicle, as well as how many miles it has on the clock.
return to the insurance differential bill
back to bill plus insurance differential pays the difference between your auto insurer’s settlement figure and the original bill price of your vehicle or your outstanding finance payments (whichever is greater at the time you file your claim). claim).
agreed value gap insurance
If your vehicle is a total loss, Agreed Value Gap Insurance will reimburse you for the difference between what your comprehensive insurance pays and the retail value of your vehicle’s glass guide when you purchased your policy.
differential safer vehicle replacement
Vehicle replacement plus gap insurance will cover the difference between your auto insurer’s payout figure and the replacement cost of an equivalent vehicle at original price, not at the time of cancellation or financing pending, whatever. is older.
rental contract plus unevenness insurance
A rental agreement policy will pay up to 100% of outstanding rental payments on a rental vehicle or rental agreement, as well as any shortfall in initial rental coverage from your comprehensive auto insurer
brim gap insurance
Wing Gap Insurance is designed for car owners who want stronger protection for their vehicle in the event their car is written off. We offer exclusive benefits that other insurers do not offer, such as free transfers without administrative fees and a limit of 120 days to file a claim instead of the Industry standard 30 days.
Our policies are fully authorized and regulated by the Financial Conduct Authority and are underwritten by fscs protected companies. can tailor your policy to your specific needs, including optional coverages like key care, tires/alloys, and scratches & dent insurance.