What should you look for when considering Gap Insurance exclusions in your policy? With so many Gap Insurance policies on the market, then you could be excused for thinking that all Gap Insurance policies may be the same. We actually you could not be further from the truth. All Gap Insurance underwriters will have their own particular take on what they will cover and what they will not. It pays to take a close look at each policy, and decide what is right for you.
Typical Gap Insurance exclusions
The obvious and most common exclusion is any unused Road Fund Licence on the vehicle if it is written off. This is still your property, and you insurance company should return it to your disc to you, and you can claim back its value from the DVLA.
It is typical that items such as extended warranties and paint protection cannot be covered either, although there are some Gap Insurance policies that can cover items such as these.
Other policy exclusions can vary, such as modified vehicles, type of vehicle, vehicle use, length of cover etc.
How can you check on the exclusions, well the only sure-fire way is to read the policy wording and ask as many questions as you can. What may be important to you may not be important to the next person, so be clear as to what you may want to cover.
As with all forms of insurance, it is important to check all aspects of your cover. Do not just assume that all ‘Return to Invoice’ policies are the same, as it is likely they are not. Even policies underwritten by the same insurer can be different in its terms and conditions.
Other resources for Gap Insurance exclusions
Some Gap Insurance brokers have dedicated lists of policy features and exclusions. Search their websites for such details. As with any type of policy, the Gap Insurance exclusions can be all important.