GAP Insurance & Finance Gap Insurance


Gap Insurance



These days, most finance and leasing companies will at some point mention the words ‘Gap Insurance’. Gap Insurance is simply what most fully comprehensive car policies offer as a new car replacement during the first 12 months of ownership. If your car is written off or stolen after this period, the insurance payout is likely to leave you out of pocket. However, insurers will only cover the current market value of your vehicle if you do have a successful claim. Most of the time this is somewhere just above the trade price but significantly lower than the retail price. What GAP does is cover the difference between this payout, or the market value of the vehicle, and the amount you originally paid for it. It therefore eliminates the risk that your vehicle insurer will not pay out enough to pay off your finance in the event of a loss.



Imagine the situation, you have just taken delivery of your brand new van or car from Crusader Vehicles and someone smashes into it. Then you receive a phone call and it’s from the insurance company. Your brand new pride and joy is a write-off. To make matters worse, the settlement that they have offered you is below the value of the outstanding payments on your new vehicle. Normally this is a situation that would bring on sleepless nights and panics about how you are going to make up the difference and get yourself into a new vehicle. However, if you have decided to take out the GAP insurance, the benefit of having this will now become apparent, simply put GAP insurance (or Finance GAP) covers the difference between your insurance settlement and your outstanding finance.

Finance GAP provides financial protection should your car be declared a total loss by your motor insurance provider and you have taken out a finance agreement to fund its purchase. In the event of a valid claim, GAP will pay the difference between the amount paid out (the settlement) by the motor insurance provider and any outstanding finance on your vehicle.

For instance, imagine you pay £18,500 for your vehicle. Then your vehicle is written off and your motor insurance company only pays out £12,000, but you still owe £19,200 on your finance agreement. In this case, your Finance GAP pay-out of £7,200 makes up the difference.


Gap Insurance



  • Policy duration – Cover is available for varying durations, depending on your requirements and according to the terms of your finance agreement. Cover ends earlier in the event of a paid claim or if the vehicle is no longer in your possession.
  • Excess – Provides a contribution of up to £250 towards your insurance policy excess.
  • Claim – A range of claim limits are available depending on the premium paid and the purchase price of your vehicle.
  • Vehicle accessories covered – We will cover up to £1,500 of accessories that are manufacturer approved and fitted by your dealer. All accessories fitted by the manufacturer are covered.
  • Transferable – If during the first year of cover, the vehicle is written off and you get a replacement vehicle on a “new for old” basis, you can transfer the remaining duration of the policy to your replacement vehicle free of charge. You may then subsequently, at any time, transfer any remaining period of insurance on the policy due to a further change of vehicle, on payment of an administration fee of £35, as long as the replacement vehicle falls within the price range specified in your policy schedule.
  • Cancellable – If for any reason, you wish to cancel your policy and you do so within 30 days, and no claim has been registered with AutoProtect during this time, we’ll give you a full refund. After that, you may still cancel at any point, subject to a £35 administration fee. You will receive a pro-rata refund reflecting the length of the term remaining. Simple to arrange: Your sales consultant will be happy to answer any questions you may have and confirm your eligibility for GAP



Finance Guaranteed Asset Protection is an OPTIONAL facility available from Crusader Vehicles. Our sales consultants will be happy to answer your questions or clarify the policy benefits and exclusions. You should be aware that similar products may be available elsewhere to purchase directly. However, as with any insurance policy, you should confirm that the cover levels of alternative facilities are suitable for your needs.

You should note that there are certain limitations in terms of the maximum amount you may claim. For full benefits and exclusions, please refer to sections titled ‘What is covered?’ and ‘What is not covered?’ of the policy terms and conditions which will be provided on request.

IMPORTANT: Financial Conduct Authority regulations require us to provide you with a separate Finance GAP Key Information document. You are unable to purchase this facility until one day has passed, following receipt of the information outlined in the document. We will contact you on the 4th day to discuss the facility further, however, should you require more immediate cover, you have the right to conclude purchase on day 2 or day 3 by contacting your Sales Consultant.

As with all insurance policies, there are some circumstances for which Finance GAP will unfortunately not cover you. You must have in place a fully comprehensive motor insurance policy issued by an authorised UK motor insurer which insures against accidental loss and/or damage to the vehicle throughout the period of insurance. In the event, your motor insurer rejects your claim and a settlement payment is not made you will not be covered by either of these policies.

Vehicle Exclusions – We are unable to cover all vehicle types. You will be excluded from the benefits of this policy if:

  • The vehicle has been modified in any way from the manufacturer’s specification.
  • The vehicle is used for hire or reward, i.e. taxis or courier vehicles. Alternative products may be available from your supplying dealership that can provide cover for these vehicles. Please ask for further information.
  • The vehicle will be used for a competitive event.
  • The vehicle is heavier than 3500kg gross weight.
  • The vehicle is listed in the specifically excluded list; some prestige vehicles and sports cars are excluded: Including, but not limited to, Aston Martin, Bentley, Honda NSX models, Lamborghini, Rolls Royce, and kit cars.

General Exclusions

  • Any total loss due to your negligence or deliberate action.
  • Any total loss as a result of an accident where the driver of the vehicle is under the influence of alcohol, drugs not prescribed by a registered medical practitioner, or drugs prescribed by a registered medical practitioner where a warning against driving has been given.

Additional Costs – Additional costs within the finance settlement for anything other than the purchase of the vehicle. This includes but is not limited to; administration charges, option to purchase charges, late payment charges, and arrears, early settlement charges.

Negative Equity – This means any sum outstanding from a previous finance agreement, transferred to the new vehicle finance agreement.

Tax – Any recoverable Value Added Tax (VAT) where you are VAT registered.

Our Finance GAP is administered by AutoProtect (MBI) Limited. AutoProtect (MBI) Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 312143. AutoProtect (MBI) Limited is a Credit Broker, not a Lender.



Getting yourself GAP insurance can be a useful tool if you have recently bought your vehicle using finance or lease, especially if the loan value is high. For instance if you have chosen a contract hire finance deal, where you have signed up to a long term rental of the vehicle with specific mileage allowance. If you had an accident in these terms, you could be left without a car or still owing thousands in the outstanding finance if you are not covered with GAP insurance. If you are concerned about your new car depreciating in value, the quicker your car loses it’s value, the less you might get back from your insurance company if you had an accident, or your car was stolen.

For more information on all things Gap Insurance, or just general questions about possible finance and lease offers we have for you. Feel free to give us a call on 01825 701200. We offer insurance to cover every aspect of your business, including Van Insurance, Tradesman Insurance, Professional Indemnity, Office Insurance, Directors and Officers Cover, Office and Shop Insurance.

To see our range of car & van leasing & finance deals by following these links car van leasing, and van leasing specials. Finally, to improve your understanding of van leasing and finance options we offer, click here.