Bought a car 2 years ago, too late for Gap Insurance?

It is quite common that your motor dealer would offer you Gap Insurance, as part of the sales process. However, there are occasions where they would not, for example if they are not FSA registered, then they would not be authorised to speak to you about Gap Insurance at all.

Most Gap Insurance policies must be bought within 180 days of the vehicle purchase from a motor dealer. So what happens if you have owned the vehicle for say 2 years, are you too late for Gap Insurance cover?

Gap Insurance at any time?

It can be infuriating to find out about Gap Insurance when it is too late. The nightmare of having a vehicle written off and finding out you could have protected yourself financially is really rubbing salt into the wounds.

Whilst you cannot get any form of Gap Insurance after the event (wouldn’t that be great!), you can take forms of Gap Insurance after the standard 180 day purchase limit for Return to Invoice and Vehicle Replacement Insurance.

Gap Insurance

Thought you could not have Gap Insurance because you have owned the vehicle more than 6 months

Your first option is rarely offered, but you can find it from certain specialist brokers. If you have your vehicle on a finance agreement through the motor dealer, or a contract hire lease, then you can protect any shortfall on a finance settlement.

This type of Gap Insurance is Finance Gap cover, and normally would have to be bought within 180 days of the vehicle purchase. However, online Gap Insurance broker, do allow you to take Finance Gap Insurance at anytime during the finance agreement.

This means that if you  are in the third year of a five year finance agreement, then you can still protect the final two years or so, if you wish to do so.

Agreed Value Gap Insurance

Another alternative would be an Agreed Value Gap Insurance policy. Instead of protecting a finance shortfall, Agreed Value Gap will protect the vehicle value on the day you buy the policy, not from the invoice price. The ‘Agreed Value’ is normally based on a recognised trade valuation, such as the Glass’ Guide Retail Value of the vehicle.

Shop around and you can even find some brokers who offer Agreed Value Gap for 105% of the GGRV on the day you buy the policy (that’s £500 more protection on a £10,000 vehicle).

So if you are worried that you have missed the deadline for Gap Insurance, then do not despair. Even though you have a much smaller choice of Gap Insurance products, there are still options left open for you.

Gap Insurance is still not out of reach!


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