GAP Insurance or Guaranteed Asset Protection is designed to cover the difference between the amount your insurance provider pays and the amount you’d need to pay to buy a new or equivalent vehicle. Effectively covering the financial ‘gap’ in the event of an insurance claim. There are different types of GAP, therefore it’s important to choose the correct type of cover.
The type of GAP policy you required will depend on your individual circumstances. Veerkle offers the following:
It’s important to be aware of the different aspects of a GAP policy. These include the length of cover, age of vehicle and maximum value of the vehicle, however one of the most important is the excess. The excess differs from a traditional insurance policy excess, because this is how much your GAP Insurance policy will pay towards your car insurance excess. For example, if your car insurance excess is £750, but your GAP Insurance policy has an excess of £250, this therefore leaves a shortfall of £500.
For example, your car insurer should pay out for a replacement car in a like for like scenario, however GAP Insurance is there should you want to replace your old one with a new one, or if you have a finance agreement in place from a finance company which you need to be covered. This amount would be more than you’d receive from an insurer.
GAP Insurance, or also known as Guaranteed Asset Protection covers the difference (or gap!) between the amount your insurance provider pays and the amount you would need should you buy a new or equivalent model vehicle.
With all new cars, they start losing value the minute they leave the car showroom or as a new vehicle owner you begin to drive your vehicle. In the unfortunate instance where you are in an accident or your car is stolen, you might not be in a position where you can replace your vehicle with a new model. Alternatively if you have an existing finance agreement in place, you will be left making monthly payments for a vehicle you no longer have. By purchasing a GAP policy you will be covered for the difference whether this is personally or to cover an existing finance agreement.
Ultimately GAP Insurance isn’t essential, mainly because your car insurer should already pay out for a replacement of similar age and condition, however if you want to buy a new car to replace your old one or are tied in to a finance deal, this may leave a shortfall GAP Insurance can cover.
While on cover, our aim is to make Veerkle as accessible as possible, therefore being available whenever required. Finally, once you are a Veerkle customer, we aim to be judged on our excellent claims and service experience, meaning one of our aims is to form a long term relationship with a loyal customer base.
There are a few types of GAP Insurance to choose from, these have been explained below:
The cost of GAP Insurance will vary depending on the type of vehicle your looking to cover, the value of your vehicle, type of GAP Insurance, policy length and excess. As with all insurance policies, it is important to read the terms of your policy.
At Veerkle, we cover vehicles up to a value of £75,000 over a term of 5 years, while offering the following types of GAP Insurance:
We currently exclude the following vehicles:
Naturally, insurance is there for customers when needed, however there are a few instances when a GAP policy will not pay out. These include:
Our GAP policies are underwritten by Financial and Legal Insurance Company Limited (1 Lakeside, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3GW), which is authorised by Prudential Regulation Authority and regulated by the Financial Conduct Authority (202915). Registered in England and Wales under company number 03034220.
Providing you meet our eligibility criteria at the date of commencement of the period of insurance you are eligible for a GAP Insurance policy.
All of our policies require you to be 18 years of age with a provisional or full driving licence, and you have the correct insurance in place for your vehicle.
The excess on a GAP policy is different from a traditional excess on say, a home insurance policy. The excess on a GAP policy is how much your GAP policy will pay towards your car insurance excess.
As an example, if your car insurance excess was £1,000, and you have taken out Veerkle’s level 2 cover which has a £500 excess, this means in the event of a total loss claim, £500 would be paid towards your car insurance excess from your GAP policy. Therefore a £500 shortfall to be paid by the customer.
All of our claims details are located within our customer zone or within your Policy Wording.
At Veerkle, we offer a choice of three levels of cover, while offering tailored policies to suite our customers. Veerkle has been built by professionals who collectively have 60+ years of experience, with the aim to:
Veerkle is also a UK based company, trading as an appointed representative of UK Oasis Group Ltd, of which all of the details can be found on the Financial Conduct Authority website.