What does CTL GAP Insurance cover?
This policy pays the difference between what your motor insurer pays you as a settlement and either what you originally paid for the vehicle or your outstanding vehicle finance balance, whichever is greater.
How do Combined Total Loss policies work?
You buy a vehicle
Let’s say you buy a £30,000 car using a £5,000 cash deposit and covered the remaining £25,000 using vehicle finance.
Your finance agreement carries a 10% interest rate, which means the total you’ll be charged by the finance company over your agreed term is £27,500.
Therefore, the true cost of your vehicle is £32,500.
Your vehicle is stolen
2 years later, your car was stolen and was never recovered.
Due to your car losing value over time (depreciation), your vehicle is now only worth £20,000 and your motor insurer agrees to pay you this amount as a settlement.
Your GAP policy reimburses the greater amount
If you signed up to a 3 year vehicle finance arrangement, then you would still owe the finance company around £9,170 at the time your car was stolen.
As the difference between your vehicle’s invoice price (£30,000) and your motor insurance settlement (£20,000) is a greater amount (£10,000) than what you owe the finance company, our Combined Total Loss policy would pay you £10,000.
If you signed up to a 4 year vehicle finance arrangement, then you would still owe the finance company around £13,750 at the time your car was stolen.
The difference between your vehicle’s invoice price (£30,000) and your motor insurance settlement (£20,000) is only £10,000, therefore our Combined Total Loss policy would pay you £13,750 as this is the greater amount.
Combined Total Loss features and benefits
Pays up to £50,000
Provides up to 4 years GAP cover
Pays £250 towards your motor insurance excess as standard
Covers vehicles up to £150,000 in value
Covers cars and vans
Available to both individuals and businesses
Covers all drivers who are legally allowed to drive your vehicle
Combined Total Loss policy restrictions
Vehicle must be deemed a ‘Total Loss’ by your motor insurer
Vehicle must be less than 10 years old
You must be a UK resident
Vehicle must have covered less than 100,000 miles from date of registration
You must have Comprehensive Motor Insurance in place
You must be 18 years old or over
Vehicle must have been purchased within the last 90 days
For details on all policy benefits and restrictions, please read our Combined Total Loss policy wording before purchasing.
Should I buy a Combined Total Loss policy?
A Combined Total Loss GAP policy could be beneficial to you if:
You financed your vehicle using HP, PCP or CS
Your vehicle is likely to drop in value between now and the end of your finance term
You wish to avoid paying finance repayments for a vehicle you no longer have