GAP
Insurance

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:

1. Return to Invoice – This pays the difference between your car insurance provider’s total loss payment and the exact price which you originally paid for the vehicle when it was first purchased in the event your vehicle is stolen or written off. This will also include what you owe to a finance company, thus providing a ‘total loss’ payment.
2. Combined Return to Invoice – This covers you if your vehicle is written off between your vehicle insurers settlement figure and the highest of either the original price you paid for your vehicle or your outstanding finance settlements.
3. Contract Hire or Lease – In the event of a ‘total loss’ claim, contract hire GAP Insurance will cover any remaining rental payments for the vehicle, as well as any shortfall in market value. It may also cover the deposit you pay at the start of the contract.
4. Vehicle Replacement - In the event of a total loss, this GAP type will cover the cost of replacing your vehicle with a new one of the same make and model.

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:

1. Combined Return to Invoice
2. Return to Invoice
3. Contract Hire or Lease GAP
4. Vehicle Replacement

We currently exclude the following vehicles:

• Scooters
• Motorcycles
• Touring Caravans
• Mobile Homes
• Non-UK specification vehicles or those not built for principal sale in the UK
• Grey imports
• Kit cars
• Replica cars
• Buses, coaches and commercial vehicles of more than 3500kg
• Those vehicles modified other than in accordance with the manufacturer’s specifications

Naturally, insurance is there for customers when needed, however there are a few instances when a GAP policy will not pay out. These include:

1. The total loss is caused when the insured vehicle is driven with your general consent by someone who does not hold a valid driving licence.
2. The total loss from you or any other person with your general consent is driving the insured vehicle when intoxicated or under the influence of alcohol or drugs which have not been prescribed by a medical practitioner.
3. The total loss results from an accident, theft act of vandalism or flood outside of the territorial limits where the insured vehicle has been driven for more than 30 days in any 12 months of cover.
4. You are using a vehicle for motor trade purposes which are not covered for the full market value, only trade purposes. For example courtesy cars.
5. Your motor insurer does not pay out. An example of this may be due to negligence or drink driving.
6. The total loss results from civil commotion, terrorism, riot or insurrection, war or any act incidental to war (declared or not).

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:

• Offer a collection of the best value products in the UK, balancing between price and benefits
• A choice of multiple levels of cover
• Purchase a policy online within a matter of minutes
• Build a dedicated, friendly and helpful customer service team
• Provide a competitive product in comparison to dealerships, who can often be more expensive rather than purchasing directly

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.