Mind the GAP…
![Mind the GAP…](https://www.cheapsr22.us/wp-content/uploads/2024/08/Mind-the-GAP…-1024x226.jpg)
Have you ever considered what you would do to keep your business running following a total loss claim, theft or write-off?
If you had to hire a vehicle to cover the loss this would have to be at your own expense, panic and purchase another vehicle that might not really suit your requirements given the urgent nature of the purchase or just suffer the potential loss?
Well now that the Financial Conduct Authority has lifted its pause on GAP insurance, introduced in March of this year, help is in hand in the form of an insurance solution.
With a fleet GAP insurance policy, you can benefit from access to a temporary replacement vehicle to cover the immediate loss, whilst your insurance settlement is resolved.
The cover includes provision of a hire vehicle (car or light van up to 3.5t gross vehicle weight) for a full 42-days so that you can keep your business mobile during what could be a stressful time of the total loss negotiation.
GAP insurance is designed to protect you against a financial shortfall in the event of a total loss due to fire, theft, accident or accidental damage.
GAP products will benefit you if buying a new or used vehicle, buying privately or from a dealer, obtaining a vehicle on finance, lease or even an outright purchase.
For fleet customers we can even tailor the cover for a pro-rata time period so that it can coincide with your next fleet insurance renewal.
GAP Insurance for fleets is growing as more and more fleet operators look to protect their vehicle assets against a write off following Fire, theft, Accident or accidental damage.
• Includes provision of a temporary replacement vehicle for 42 Days during total loss negotiations
• Designed for companies running 3 or more vehicles;
• Annually renewable policy and will cover all eligible vehicles on the fleet up to 44-ton GVW
• Short-term policies available
• Allows for movements on/off the fleet with pro rata charging/rebating
• The policy will apply to vehicles on lease, finance and vehicles owned outright
This policy is designed to clear the outstanding balance owing to the Finance/lease company if the motor insurer settlement has not been enough to clear it or top up the motor insurer’s total loss settlement by 25%. Whichever calculation is the greater. (Maximum sums insured apply).
Whilst you can buy an individual GAP insurance policy per vehicle and benefit from a “back-to-invoice” settlement with cover ranging from 24 – 60 months, the fleet option is a much more competitive annually renewable policy.
Some GAP insurance policies will also guarantee to reimburse any policy excess, the maximum amount payable is capped, however this provides further cover against potential losses.
Another benefit this cover provides is protecting the value of your vehicle assets listed on your books.
If the insurer offers you a settlement value that is less than that listed in your accounts then your business is technically faced with a financial loss as a result of an accident, which could not even be your fault.
Taking our GAP insurance protects you against any shortfall and as a result it protects the value of the asset on your books.
I am convinced that GAP insurance can provide invaluable extra cover for your fleet and would encourage all fleet operators to investigate this further.