Types of GAP Insurance
What does GAP Insurance cover?
Guaranteed Asset Protection (GAP) Insurance, or Motor Equity Insurance, provides loan settlement cover, and may also provide additional cover, in the event of a total loss claim payout on a vehicle you have under finance.
Loan settlement cover is paid by your GAP insurer to your financier when a total loss payment made by your comprehensive vehicle insurer does not cover the total amount required to settle (payout) your loan contract. When there is a "gap" between the amount paid and the payout amount on the loan, loan settlement cover will be paid to your financier to cover this difference up to the relevant limits.
The maximum amount payable in loan settlement cover will depend on your specific policy and will be specified in your policy documents.
Extra cover may be paid when you incur necessary additional costs as a direct result of a total loss claim being paid out by your comprehensive motor vehicle insurer. Costs covered by GAP Insurance Extra Cover may include:
- your comprehensive motor vehicle insurance excess
- delivery charges
- registration costs
- stamp duty
- car hire
The maximum amount payable in extra cover will be specified in your policy schedule.