Alyssa Lane
Skoda GAP insurance is an optional add-on to your car insurance that helps bridge the gap between what your standard insurance company pays out in the event of a total loss (your car being stolen or written off) and the amount you still owe on your financing or lease. If your Skoda is written off, your motor insurer will usually pay out based on the current market value of your vehicle, which may be a lot less than its original value and may leave you with an unexpected shortfall. Skoda GAP insurance helps to cover this shortfall and get you back in a new Skoda or help pay off any outstanding finance, lease, or hire agreement. The cost of GAP insurance depends on the make and model of the vehicle, the rate of depreciation, your age, and your vehicle claims history. It also varies by state. With prices from as little as £79 for a three-year policy, it may be a good option for those looking to bridge the gap between their insurance payout and the amount they still owe on their vehicle.
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What You'll Learn
Skoda Gap Insurance Plus
If your Skoda is written off, your motor insurer will only pay what they believe your Skoda is worth at the time of loss, also known as the "market value". The purpose of Gap Insurance is to top up the amount paid out by your motor insurer to a higher sum. Depending on the type of Gap Insurance you have, this could be the settlement figure of your finance agreement, the original invoice price you bought the vehicle for, or the cost of replacing the vehicle with a brand new version of the same vehicle at the time of the claim.
You might find Gap Insurance particularly valuable if your Skoda is on a finance agreement or you have outstanding payments on a personal loan. This could mean you end up paying finance instalments on a car that's no longer on the road. Gap Insurance can help provide added financial security and prevent you from paying money out of pocket.
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Total Loss
If your Škoda is written off, your motor insurer will usually pay out based on the current market value of your vehicle. This could be significantly less than its original value, leaving you with an unexpected shortfall. Škoda Gap Insurance helps to cover this shortfall, either to get you back in a new Škoda or to help pay off any outstanding finance, lease or hire agreement. This pays the difference between the write-off settlement from your motor insurer and the price you paid for your Škoda or the outstanding balance payable to the finance company, whichever is the greater amount.
For example, if you have a new Škoda Fabia worth £19,170, you could expect to pay around £6.76 per month for a 3-year policy. This could be as low as £3.96 per month.
If your vehicle is leased or hired, Škoda Gap Insurance will cover the difference between the write-off settlement from your motor insurer and the early termination charge, including any rentals paid in advance as a deposit. Cover lasts for 36 months, and the maximum claim limit is based on your vehicle purchase price. For example, you could receive a £6,000 payment that you could use towards the purchase of a new Škoda.
In addition, Škoda Gap Insurance Plus includes a 12-month fixed benefit. This will start once your 36-month Gap Insurance cover ends. If your vehicle is written off during this additional period, Škoda will pay a fixed sum of £2,500.
If your Škoda is stolen or deemed a total loss, your standard car insurance company will typically only pay out the current market value of the car. If the market value isn’t enough to cover your remaining loan or lease balance, you’ll be left with a financial gap to pay. Škoda Gap Insurance will pay the difference between the market value of your car and your loan or finance balance, so you won’t be stuck with any leftover debt.
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Cost of Skoda Gap Insurance
The cost of Škoda Gap Insurance depends on the type of insurance you choose and the value of your vehicle. As of 10 February 2024, Škoda Gap Insurance is no longer available for new policies, but existing policies are still valid.
The three main types of GAP insurance are Finance, Invoice, and Replacement GAP insurance. The cost of Škoda Gap Insurance varies depending on the type of insurance you choose. For example, Contract Hire GAP insurance and Invoice GAP insurance are available for vehicles worth more than £50,000, while Replacement GAP insurance is available for vehicles worth up to £80,000.
The purpose of GAP insurance is to cover the difference between the market value of your vehicle and the amount paid out by your motor insurer in the event of a total loss. This could include the cost of replacing the vehicle with a brand new version or the outstanding balance on any finance or lease agreements.
The Škoda Gap Insurance Plus policy includes a 12-month fixed benefit that starts after the initial 36-month Gap Insurance cover ends. If your vehicle is written off during this additional period, you will receive a fixed sum of £2,500.
It is important to note that the cost of Škoda Gap Insurance may vary depending on individual circumstances, and it is always recommended to review the terms and conditions of any insurance policy before purchasing.
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When to buy Skoda Gap Insurance
Skoda Gap Insurance is worth buying when you want to protect yourself financially in case your Skoda is written off. Your motor insurer will usually pay out based on the current market value of your vehicle, which could be significantly less than its original value, leaving you with an unexpected shortfall. Gap insurance helps cover this shortfall, ensuring you don't get stuck with leftover debt. This is especially valuable if your Skoda is on a finance agreement or you have outstanding payments on a personal loan.
It is recommended to get gap insurance as soon as you purchase or lease your vehicle, but you can still add this coverage up to 12 months after financing your car, depending on your insurance agency. You can buy two-, three-, four-, and five-year gap coverage, and even policies that cover your Skoda for up to 8 years. The cost of gap insurance depends on various factors, including the make and model of the vehicle, the rate of depreciation, your age, and your vehicle claims history. However, it is relatively low-cost coverage, and you can find policies with premiums as low as £3.96 per month.
Additionally, some gap insurance policies offer added benefits, such as Total Loss Courtesy Car cover, where you will be provided with a courtesy car for up to 28 days if your car is declared a Total Loss. You can also opt for Skoda Gap Insurance Plus, which includes a 12-month fixed benefit that starts once your 36-month Gap Insurance cover ends. This means that if your vehicle is written off during this additional period, you will receive a fixed sum of £2,500.
When considering whether to buy Skoda Gap Insurance, it's important to review the terms and conditions carefully, as there may be specific requirements or exclusions that could impact your decision. For example, some policies may require your vehicle to be brand new or under a certain age. Additionally, keep in mind that you have a 30-day cooling-off period to cancel the policy and obtain a full refund if you change your mind.
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Skoda Gap Insurance claim
Skoda Gap Insurance is an optional add-on to your car insurance that helps bridge the gap between what your standard insurance company pays out in the event of a total loss (your car being stolen or written off) and the amount you still owe on your financing or lease. If your Skoda is written off, your motor insurer will usually pay out based on the current market value of your vehicle. This could be a lot less than its original value and may leave you with an unexpected shortfall. This is where Skoda Gap Insurance comes in—it will pay the difference between the market value of your car and your loan or finance balance, so you won't be stuck with any leftover debt.
Skoda Gap Insurance is worth considering if you're concerned about not getting the original value of your car back if it's written off by your insurer. It's also valuable if your Skoda is on a finance agreement or you have outstanding payments on a personal loan. Without Gap Insurance, you may end up paying finance instalments on a car that's no longer on the road, and the finance company may insist that you pay off the loan entirely.
Skoda Gap Insurance offers peace of mind and financial security by covering the additional costs that may arise when your vehicle is written off. Depending on the type of Gap Insurance you have, it can pay the settlement figure of your finance agreement, the original invoice price of the vehicle, or the cost of replacing it with a brand new version. Additionally, with Skoda Gap Insurance Plus, you get a 12-month fixed benefit that starts after your 36-month Gap Insurance cover ends. During this period, if your vehicle is written off, you will receive a fixed sum of £2,500.
When making a Skoda Gap Insurance claim, it's important to follow the correct procedure. Firstly, contact the Administrator to register your claim before agreeing on any settlement offer from your motor insurer. You should also maintain any loan or finance payments that are due while your claim is being assessed. The Administrator may arrange for a representative to visit you and help investigate your claim. If you need to make any changes to your policy details or require assistance, you can contact the Skoda Gap Insurance Customer Service Manager at the address provided on their website.
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Frequently asked questions
Guaranteed Asset Protection (GAP) insurance is an optional add-on to your car insurance that covers the difference between what your standard insurance company pays out in the event of a total loss and the amount you still owe on your financing or lease.
A total loss is when your car is stolen or written off, which can happen for many reasons, including an accident or if the cost of repairing your car is not viable.
The cost of GAP insurance depends on various factors, including the make and model of the vehicle, the rate of depreciation, your age, and your vehicle claims history. The average cost is £6.76 per month for a 3-year policy, but premiums can be as low as £3.96 per month.
Skoda GAP insurance covers the gap between the market value of your car and your loan or finance balance, so you won't have to pay off a loan for a car that's no longer on the road. It also includes Total Loss Courtesy Car cover, which provides you with a courtesy car for up to 28 days if your car is declared a total loss.
Skoda GAP insurance is worth it if you're concerned about not getting the original value of your car back if it's written off by your insurer or if you have outstanding payments on a personal loan. It provides added financial security and prevents you from paying out of pocket.
