Combined GAP Protection
Vehicle crime is sadly very common these days in the UK. You might think that you are covered for this in your motor insurance. But do you know how much you would get from your motor insurance policy if your vehicle was declared a total loss due to an accident, fire or theft? Even with comprehensive cover, if your vehicle is written off, your motor insurance company could only pay out the market value of your vehicle at the time of the write-off, which is very likely to be less than you have to pay for a similar replacement vehicle.
For example, if your vehicle originally cost you £15,000, its market value may only be £9,000 after 2 years, and this is what you will receive from your motor insurance company (minus any applicable excess). This means you will have lost £6,000.
Similarly, if you take finance on your vehicle, your outstanding finance at the time your vehicle is written off may be higher than the amount you will receive from your motor insurance, leaving you out of pocket.
Double Protection for total piece of mind
Our Combined GAP Protection provides you a double protection when your vehicle is written off, by covering the difference between the vehicle's market value at that time and the net invoice price or the outstanding finance (whichever of the two is greater), up to the limit stated in the Terms and Conditions. These types of insurance cover are individually known as Total Loss GAP and Finance GAP, respectively. Your vehicle's market value will be defined as the settlement you will receive from your motor insurance, or the retail value stated in Glass's Guide at the time (whichever of the two is higher).
Any driver is covered while driving in any part of the EU, as long as they are driving with the policyholder's permission and are covered by comprehensive motor insurance. Exclusions that apply to the policyholder will apply to all other drivers.
Duration of the policy
As this is a combined product, the period of Total Loss GAP cover will be valid for 36 months. Should you have the added benefit of Finance GAP, this will continue for up to 36 months in total, provided your Finance Agreement does not expire and is not settled early.
This is only a summary of the cover available. Please ask one of the salespersons at our dealership for full details and Terms and Conditions.
Your Combined GAP cover
This Policy Summary is a brief summary to the Policy and does not contain the full Terms and Conditions. Please refer to and read the Terms and Conditions in full.
What does this Policy Cover?
This is a Combined GAP Policy including both Finance and Total Loss GAP cover. The Finance Gap is extended to include Negative Equity cover providing Total Gap protection. This Policy is designed to cover your vehicle in event of a Total Loss up to a maximum Benefit of £10,000 (including any Benefit due for Negative Equity).
As a combined product the Policy works as follows:
In the event that your vehicle is deemed a Total Loss, during the Period of Insurance, this Policy will pay the greater of the following:-
Total Loss GAP- (Section a)
The difference between the Net Invoice Price of your vehicle at the start date and your Motor Insurance Company's settlement figure*. Any Benefit due under this section of your Policy will be paid to directly to you.
Or
Finance Gap - (Section b)
The difference between your Motor Insurance settlement figure* and the outstanding Early Settlement Balance to your Finance Company. If a Total Loss on your vehicle occurs, which results in a Benefit being paid under this Policy and you have Negative Equity listed on your vehicle invoice and included in your Finance Agreement, this Policy will pay up to a maximum of £2,000 towards the Negative Equity amount. Any Benefit due under this Section of your Policy will be paid direct to the Finance Company.
* The value of the Insured Vehicle (excluding contents) at the Date of Loss is assessed by the insurers of the Motor Insurance or by reference to Glass's Guide Retail value, whichever is the greatest.
PLEASE NOTE
The total Benefit payable under this Policy shall not exceed the limit of £10,000 (including any Benefit due for Negative Equity) If you do not receive a Benefit under this Policy for your vehicle, no Benefit will be payable for Negative Equity.
Please refer to the full Terms and Conditions of your Policy, which explains how any Benefit for your vehicle or Negative Equity will be calculated in the event of a Total Loss occurring.
Am I eligible for cover
You will be eligible for Combined GAP Policy including Negative Equity (Total Gap Protection) Policy provided:
The vehicle you are purchasing:
- Is listed in Glass's Guide (Industry standard vehicle price guide), and;
- Must be used principally in the United Kingdom.
You must also be insured at all times under a UK Motor Insurance policy which provides comprehensive cover.
Period of Insurance
Cover under this Policy lasts until the earliest of the following:
- a) Maximum 36 months from the Start or;
- b) Date on which the vehicle is sold or transferred to a new owner, or;
- c) The date a claim is paid in respect of your vehicle under this Policy, or;
- d) Repossession, or;
- e) Cancellation of the Policy.
Please note that this Combined GAP including Negative Equity (Total Gap Protection) Policy cannot be renewed.
Benefits and significant features of the Policy
This Policy is a combined product, which includes both Total Loss GAP and Finance GAP.
This Policy is designed to cover your vehicle in the event of a Total Loss up to a maximum Benefit of £10,000.
The maximum Benefit payable in relation to any Negative Equity covered under your Policy from the Start Date is £2,000.
Significant and unusual conditions and exclusions
The below is only a brief summary and a selection of the Conditions and Exclusions of your Policy.
- In the event of the Total Loss of your vehicle occurring within the Territorial Limits during the Period of insurance you must contact the Administrator prior to accepting any settlement offer made by your Motor Insurance. The Administrator may request for you to negotiate with the Motor Insurance to obtain a higher offer based on the Insured Value.
- In the event of the Total Loss of your vehicle occurring within the Territorial
Limits during the Period of Insurance, you must check with your Motor Insurance
to confirm:
- if you are entitled to a brand new replacement vehicle if your vehicle was a New Vehicle at the Start Date of the Policy or,
- if you are entitled to a replacement vehicle if your vehicle was not a New Vehicle at the Start Date of the Policy.
- In the event that you do not utilise the Motor Insurance condition of a brand new
replacement vehicle or replacement vehicle, then the Insurer reserves the right
to settle the claim:
- by using the cost of a brand new replacement vehicle as at the Date of Loss by reference to Glass's Guide Retail as the Insured Value if your vehicle was a New Vehicle as at the Start Date of the Policy, or,
- by using the cost of or Glass's Guide Retail value as at the Date of Loss as the Insured Value if your vehicle was not a New Vehicle at the Start Date of the Policy.
In the event of a Total Loss you must contact and advise the Administrator if you are not pursuing the Total Loss through the Motor Insurance, but with a Third Party. If the Total Loss is being handled by a Third Party then all Terms and Conditions in connection with the Motor Insurance will still apply..
If you have any Negative Equity from a previous vehicle this must be shown on your vehicle invoice and must also be included in the Finance Agreement if you have taken a Loan to finance the purchase of the your vehicle, including Negative Equity (applicable to Section b only). - Your Policy is unable to be transferred to any subsequent owner of the vehicle or to any other vehicle.
- Unless you cancel the Policy within 14 days from the Start Date of the Policy you will not be entitled to any refund of Premium thereafter.
No Benefit will be payable under this Policy in the event of a Total Loss:
- If your vehicle is stolen by any person who has access to the keys of your vehicle. (Exclusion No. 1).
- If your vehicle is being used for
- a) pacemaking, racing, speed testing or reliability trials
- b) commercial business use of hire and reward including and not limited to taxi, courier services and private hire;
- c) an emergency vehicle;
- or is being driven by any person not holding a valid current license to drive your vehicle.
- If the driver of your vehicle is intoxicated by alcohol or under the influence of drugs not prescribed by a registered medical practitioner.
- No Benefit will be payable under this Policy if the Motor Insurance replaces your vehicle specified on the Certificate of Insurance.
- For any Negative Equity if the Total Loss of your vehicle has not resulted in a Benefit being paid under this Policy.
- For Negative Equity if the Negative Equity has been listed on your vehicle invoice but has not been included with the Finance Agreement (applicable to Section b only)
- For any interest charges that maybe payable to the Finance Company in relation to any Negative Equity that has been included in the Finance Agreement.
- For Negative Equity if you are unable to supply a copy of your vehicle invoice in the event of a Total Loss.
For the full details of the Conditions, Exclusion and Definitions and a complete list of the Conditions, Exclusion and Definitions please refer to the Combined GAP including Negative Equity (Total Gap Protection) Policy Terms and Conditions
Your right to cancel
You have a right to cancel this Combined GAP including Negative Equity (Total Gap Protection) Policy provided you inform the Administrator within 14 days from the Start Date of the Policy. Unless you cancel the Policy within 14 days from the Start Date of the Policy you will not be entitled to any refund of Premium thereafter. Should you wish to use this option please write, returning the Certificate and the Terms and Conditions to:
Abraxas Insurance Administration Services Ltd, 9 Blenheim Court, Beaufort Park, Almondsbury, Bristol BS32 4NE.
A full refund of any premiums paid will be given provided no claims are known or reported.
Customer Care information
In the unlikely event of a dispute occurring regarding this Policy you should, in the first instance, write to the Administrator, Abraxas Insurance Administration Services Ltd who will try and resolve the problem.
Should you still remain dissatisfied you may then write to the Customer Care Manager, Mapfre Asistencia Compañia Internacional de Seguros y Reaseguros SA, who will provide full details of its complaints procedure and of any right you may have to refer a complaint to the Financial Ombudsman Service. This procedure is in addition to your legal rights as a consumer.
Mapfre Asistencia is covered under the Financial Services Compensation Scheme. This provides compensation in case any of its members are unable, in specified circumstances, to meet any valid claims under their policies. The first £2,000 of a claim is protected in full. Above this threshold, 90% of the remainder of the claim will be met (100% if the insurance is legally compulsory). Compensation is only available to commercial customers in limited circumstances. Further information can be obtained from the Insurer, or from the Financial Services Compensation Scheme at the following address:
Financial Services Compensation Scheme
7th Floor, Lloyds Chambers,
1 Portsoken Street, London E1 8BN.
The Insurer of this Policy
Mapfre Asistencia Compania Internacional de Seguros y Reaseguros, Sociedad Anonima.
Registered Address: 5th Floor, Alpha House, 24A Lime Street, London, EC3M 7HS.
Company number; FC021974 Branch number; BR008042
The Administrator of this Policy
This Policy is administered by Abraxas Insurance Administration Services Ltd,
9 Blenheim Court, Beaufort Park, Almondsbury,
Bristol BS32 4NE who act on behalf of the Insurer.
