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0800 195 4926 0151 647 7556
0800 195 4926

Customer Service & Help Lines Open Mon-Fri 9am-6pm, Closed Saturday & Sunday

Calling from a mobile? Please call 0151 647 7556

What is Combined Return to Invoice GAP Insurance?

 

If your vehicle is written off - Combined Return to Invoice GAP Insurance will pay the difference between your motor insurance company settlement and the higher of either, 

  • The original invoice price you paid
  • The outstanding finance settlement at the time you claim

 

 Combined Return to Invoice GAP insurance is an easy level of gap insurance to understand. This is because when you buy your vehicle, you will be given an invoice, so you will know exactly how much you are protecting in advance.

 

 To buy Return to Invoice GAP from EasyGAP, you must fit specific 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 under ten years old and have travelled less than 100,000 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 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 before buying the policy that may lead it to be declared a total loss in the future.

 

How Combined Return to Invoice GAP Insurance Works

  • You buy a car in 2020 and pay an invoice of £25,000.
  • In late 2022, the vehicle is stolen. 
  • Your insurance company pay you the market value of £10,000. 
  • This leaves a shortfall of £15,000, which you claim from your Easy Gap Insurance Policy
  • You now have the invoice price back of £25,000

 

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, what happens to any outstanding finance depends on what type of agreement you had. If the finance were a Hire Purchase, PCP or anything that ties the vehicle to the finance agreement, you would usually be required to pay off the finance when the vehicle is 'written off'.

 

You may not need to pay off the finance if you have paid for the vehicle using a personal loan, as traditionally, you are the guarantee, not the vehicle. Depending on the terms and conditions of the loan, you may be able to keep the loan running and use the total 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 for your vehicle is that you have no financial settlement to settle. This means that you get the entire invoice price back in full in the event of a claim.

 

What is the 'Invoice Price'?

 

This is one of the most misunderstood aspects of a Return to Invoice GAP insurance policy 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.

 

i.e. The total on-the-road cost after any discount but before you have given a single penny in part exchange or cash deposit.

 

What is not part of your invoice price is any discount 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?

 

This situation is statistically possible, but it is rare. 

 

This may happen if 

  • You borrow the total purchase price and 
  • Have no equity and 
  • No deposit, and
  • Your vehicle is written off in the first month of your agreement, 

 

Then, depending on how your finance agreement was constructed, you may owe more on your finance settlement than the invoice price paid. i.e. You have made no payments, and some interest may have been added. 

 

If your vehicle was written off at that point, your Easy Gap RTI policy will top up the motor insurer settlement to the finance settlement. 

 

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

 

  1. You have bought your vehicle within the last 180 days.
  2. On the day of policy inception, it had less than 80,000 miles on the clock.
  3. Your vehicle purchase price was less than £50,000.
  4. You have bought your vehicle from a VAT-registered garage or main dealership.
  5. You are over the age of 18.
  6. You paid cash or a financial package, meaning you have the legal right to take full ownership at the end of your agreement.
  7. Your vehicle is not used for race, rally or track days.

 

What we can not cover

 

  1. Vehicles are being used as public hire taxis.
  2. Vehicles which are being used for any form of delivery or courier usage.
  3. Provisional licence holders
  4. Anyone who is not named on your motor insurance company's policy.
  5. Any theft or accidents that happen before your policy is in place.
  6. Any thefts or accidents that occur after your policy has expired.
  7. Any costs you incur because you can not use your vehicle.
  8. Any vehicle used within the Motor Trade.

Please see your policy documents for a complete list of terms and conditions.