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What is Combined Return to Invoice GAP Insurance?

 

Combined Return to Invoice GAP Insurance is designed to cover you, if your vehicle is 'written off', between your motor insurers settlement and the HIGHER of:

  • the original invoice price you paid

  • the outstanding finance settlement at the time you claim

 

 

Combined Return to Invoice GAP insurance is a nice easy level of cover to understand, the reason for this, is that you already have an invoice for your vehicle, so you know in advance, exactly how much you are protecting.

 

 

 

 

In order to buy Return to Invoice GAP from EasyGAP you must fit certain criteria, including:

 

 

 

  • You must have bought the vehicle from a VAT registered motor dealer in the last 180 days.
  • You must either own the vehicle outright (cash purchase, personal loan) or have the option to own the vehicle (HP or PCP).
  • The vehicle must be less than 8 years old and have traveled less than 80,000 miles on the day you buy the GAP policy.
  • You must have a car, LCV (less than 3500kg), motorhome (less than 5000kg), motorbike, scooter, private hire taxi, chauffeur vehicle or driving school vehicle.
  • The vehicle must not have been previously declared a 'write off' by a motor insurer, or have been in an incident prior to buying the policy, that may lead it to be declared a total loss in the future.

 

 

 

An example of how Combined Return to Invoice GAP Insurance works

 

For example, you buy a car in 2020 and pay an invoice price of £25,000.

 

As time goes by the value of the vehicle decreases. Let's say in 2021 it is worth £19,000 and then moving into 2022 it is now worth £14,000.  How Return to Invoice Gap works

 

Let's then say in late 2022 the vehicle is stolen. Now, at nearly 3 years old the vehicle has a 'market value of £10,000. This is the amount your fully comprehensive motor insurance pays.

 

In reality, this is £15,000 less than you paid for the vehicle in 2020.

 

Unless you have Combined Return to Invoice GAP Insurance that is. If you do then this can top up the motor insurers settlement with the £15,000 you have lost in value.

 

 

So that is £10,000 from your motor insurance and a top-up of £15,000 from the Combined Return to Invoice GAP cover.

 

This means you get your original £25,000 invoice price back in full.

 

 

 

Return to Invoice GAP - Frequently asked questions

 

What happens if you have finance left on the vehicle?

 

Many vehicle purchases are completed by taking out some form of finance on the vehicle. If you suffer a total loss then what happens to the finance very much depends on what type of finance you had in place. If the finance was a Hire Purchase, PCP or anything that ties the vehicle to the finance agreement then you will normally be required to pay off the finance at the time the vehicle is 'written off'.

 

If you have paid for the vehicle using a personal loan then you may not need to pay off the finance. Depending on the terms and conditions of the loan, you may be able to keep the loan running and simply use the full settlement to buy a new car.

 

If you do pay off the finance settlement then the remainder of the settlement is yours.

 

So if the invoice price was £15,000 (and you get this back between the motor insurer and the RTI GAP Insurance), the finance settlement is £8,000 then this will leave you with £7,000 as a deposit for a new vehicle.

 

Do I need RTI GAP Insurance if I pay cash for the vehicle?

 

Return to Invoice GAP is suitable whether you pay cash or have the vehicle on finance. The only difference when you pay cash is that you have no financial settlement to pay off if the vehicle is written off. This means, in the event of a claim, you get the entire invoice price back in full.

 

What is the 'Invoice Price'?

 

This is one of the most misunderstood aspects of getting Return to Invoice GAP, and one that we are asked time and time again. So what does your invoice price mean?

 

Simply it is the net price you have paid for the vehicle. This can include any cash you have paid, any equity from a part exchange vehicle and any initial amount you have financed.

 

What is not part of your invoice price is any discount that you have received, any interest you will pay as part of the finance agreement or any negative equity that has come across from your part exchange vehicle and been added to your new finance agreement.

 

What happens if my finance settlement is higher than the invoice price I paid?

 

To be clear, this situation would be unlikely. This may happen if you borrow the full purchase price of the vehicle, with no equity or deposit, and in the first month of your agreement, you may owe more on the finance than the invoice price paid. This is because you have made no payments and some interest may have been added. 

 

If your vehicle was written off at that point then the RTI GAP policy will top up the motor insurers settlement to the finance settlement. This is if the RTI policy is 'combined' so will pay to the higher or either the finance settlement or the invoice price you paid.

 

What are the Combined Return to Invoice GAP policy parameters with EasyGAP?

 

EasyGAP can provide cover for 2 to 4-year policy duration for vehicles up to £50,000 invoice price. For vehicles up to £25,000 then the maximum claim limit available is the invoice price you paid. For vehicles over £25,000 then the maximum claim limit available is £25,000.

 

 

 

 

 

 

 

 

For a full list of return to invoice gap insurance terms and conditions please see your policy documents provided.

 

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