Do you need fleet GAP insurance?
Delving into the intricacies of Fleet GAP Insurance, this protection functions as a bulwark for the significant financial commitment tied to your fleet. This becomes especially crucial in the regrettable circumstances of vehicle write-offs stemming from accidents, vandalism, fire, theft, or floods.
In the aftermath of such incidents, the assurance of coverage extends to mitigating the financial impact on your balance sheet. Fleet GAP Insurance steps in to cover early termination charges or the financial shortfall imposed by the finance company, providing a layer of protection for your fleet’s economic stability.
Recognising the significant cost and time investment involved in acquiring vehicles for your fleet, be it cars, vans, or HGVs, Fleet GAP Insurance offers a comprehensive solution. Our expert assessment of your entire fleet enables our partners to provide an all-inclusive policy tailored to your specific needs. This approach aims to alleviate the stress associated with disruptive situations that may arise during your business operations.
Fleet gap insurance explained
So, what exactly is Fleet GAP (Guaranteed Asset Protection) Insurance? In case of a vehicle theft or write-off, your motor insurer may compensate you based on the vehicle’s current market value. However, this amount may fall short of what is required to purchase a similar vehicle or cover the outstanding amount on the finance/lease agreement.
Fleet GAP Insurance bridges this gap by covering the difference between the motor insurer’s settlement figure and the outstanding amount owed to the finance/lease company. Alternatively, it pays 25% of the motor insurer’s total loss settlement figure, choosing the greater of the two. For example, if the insurance pays out £26,500, but the termination charge from the leasing company is £27,613.71, leaving a shortfall of £1,113.71, Fleet GAP Insurance steps in to cover the more significant amount, which, in this case, would be £6,625 (25% of the settlement amount).
Key features of our fleet GAP insurance
Key features of Fleet GAP Insurance include an extension to provide a temporary replacement car or van up to 3.5T GVW for up to 42 days once the motor insurer confirms the total loss. This temporary replacement vehicle includes motor insurance, subject to hire company terms and conditions. The coverage is available for cars and commercial vehicles up to 44T GVW and under 15 years old, covering vehicles on lease/contract hire, finance, and those owned outright.
Choosing Fleet GAP Insurance from our partners is a strategic decision backed by a dedicated team of experts specialising in fleet and accident Management. This addition to our offerings reflects our commitment to evolving and providing a complete package for our commercial customers. Our partner’s holistic approach ensures that we can tailor policies to cover every possible outcome regardless of the mix of cars, vans, and/or trucks in your fleet.
In conclusion
Our partner’s 24/7 call centre support further accentuates the advantage of having Fleet GAP Insurance from their team. This ensures that they can seamlessly handle the entire process, from policy discussions to claim settlements, providing you with a comprehensive and reliable solution.
Feel free to share your specific requirements with us, and we can work together with our partners to tailor a fleet insurance policy that aligns with your unique demands and needs. Our products and services are designed to provide the utmost coverage, offering you peace of mind in the face of unforeseen events in the dynamic landscape of fleet management. Visit our web page and complete the contact form if you want more details of our fleet GAP insurance products.
Here are some frequently asked questions (FAQs) about Gap Insurance:
What is Gap Insurance?
How does Gap Insurance work?
If your vehicle is declared a total loss, your standard auto insurance typically covers the current market value of the car. However, if you still owe more on your loan or lease, Gap Insurance covers the difference, ensuring you don’t have to pay out of pocket for the remaining amount.
When is Gap Insurance beneficial?
Gap Insurance is beneficial in situations where the depreciation of your vehicle outpaces your loan or lease repayment. It’s particularly useful for new cars that experience rapid depreciation in the early years.
Is Gap Insurance mandatory?
Gap Insurance is generally not mandatory, but it can be a valuable add-on, especially if you have a significant outstanding balance on your vehicle loan or lease. Lenders may recommend or offer Gap Insurance, but it’s usually optional.
Can Gap Insurance be purchased at any time?
Gap Insurance is typically purchased at the time you buy or lease a new vehicle. However, some providers may allow you to add Gap Insurance within a certain period after the purchase. It’s essential to check the terms and conditions with your insurance provider.
How long does Gap Insurance coverage last?
The duration of Gap Insurance coverage varies. Some policies may cover you for the entire loan or lease term, while others may have a specific time limit or coverage cap. It’s crucial to review the terms of your policy.
Can Gap Insurance cover the entire outstanding balance?
Gap Insurance typically covers the difference between the insurance payout and the outstanding balance on your loan or lease. However, it may not cover additional costs such as overdue payments, late fees, or extended warranties.
Is Gap Insurance the same as extended warranty coverage?
No, Gap Insurance and extended warranty coverage serve different purposes. Gap Insurance covers the financial gap in the event of a total loss, while an extended warranty typically covers repair or replacement costs for specified vehicle components after the manufacturer’s warranty expires.
How much does Gap Insurance cost?
The cost of Gap Insurance varies depending on factors such as the provider, the length of coverage, and the type of vehicle. It’s advisable to obtain quotes from different insurance providers to find a policy that suits your needs and budget.
