Return-To-Invoice Gap Insurance: What's Covered?

Return to Invoice GAP Insurance (RTI) is a type of insurance that covers the difference between the current market value of a written-off vehicle and the original price paid for it, or the outstanding finance, whichever is higher. This type of insurance is particularly useful for those who have financed their vehicle through a loan, as it can help cover the cost of a replacement vehicle or pay off any remaining debt. It is also beneficial for those who own their vehicle outright, as it can provide a financial cushion in the event of a write-off. RTI policies typically cover new and used vehicles purchased from a VAT-registered dealer within the last six months, with used vehicles needing to be under ten years old and have less than 100,000 miles on the clock.

Return to Invoice GAP Insurance covers the difference between the insurer's payout and the price paid for the vehicle

Return to Invoice GAP Insurance is a type of insurance that covers the difference between the payout from your insurer and the original price you paid for your vehicle. This type of insurance is also known as Back to Invoice GAP Insurance or RTI GAP Insurance.

If your vehicle is written off due to an accident, theft, fire, or flood damage, your motor insurer will typically only pay you the market value of the vehicle at the time of the claim. Due to depreciation, this market value will be much lower than the original price you paid for the vehicle. This can leave you with a significant financial shortfall, especially if you have outstanding finance on the vehicle.

Return to Invoice GAP Insurance is designed to cover this shortfall by paying the difference between the insurer's payout and the original invoice price of the vehicle or the outstanding finance balance, whichever is higher. This ensures that you are not out of pocket in the event of a total loss and can help you avoid the effects of depreciation.

To be eligible for Return to Invoice GAP Insurance, your vehicle must typically be less than 10 years old and have been purchased within a certain timeframe, usually within the last 90 to 180 days. The vehicle must also be owned outright or subject to a finance agreement, and it must have been purchased from a VAT-registered dealer.

Return to Invoice GAP Insurance can provide peace of mind and financial protection in the event of a write-off, ensuring that you have the funds to purchase a replacement vehicle or pay off any outstanding finance.

It is suited to those who own their car outright or financed it with a personal loan

Return to Invoice GAP Insurance is a type of cover that ensures you are protected in the event of a write-off, paying out the difference between what you paid for the vehicle and the insurer's payout. This is particularly useful for those who own their car outright or have financed it with a personal loan, as it can cover the cost of a replacement vehicle or pay off any outstanding finance.

If you own your car outright, Return to Invoice GAP Insurance can provide peace of mind by covering the difference between the insurer's payout and the original invoice price of the vehicle. This means that you will be able to purchase a replacement vehicle without incurring additional costs.

For those who have financed their vehicle with a personal loan, the policy can cover the difference between the insurer's payout and the outstanding finance balance. This ensures that you are not left with a financial burden in the event of a write-off.

Return to Invoice GAP Insurance is available for both new and used vehicles that have been purchased from a VAT-registered dealer. Used vehicles must be under ten years old and have fewer than 100,000 recorded miles. The policy can also be purchased for up to four years, providing long-term protection.

By choosing Return to Invoice GAP Insurance, you can protect yourself from the financial impact of depreciation. This type of insurance ensures that you receive the full amount you paid for your vehicle, rather than just the market value at the time of the claim. It offers flexibility, allowing you to use the payout as you wish, whether it's to clear any outstanding finance or for other purposes.

In summary, Return to Invoice GAP Insurance is well-suited to those who own their car outright or have financed it with a personal loan, as it provides comprehensive protection and flexibility in the event of a write-off.

It covers vehicles up to a certain age and mileage

Return to Invoice GAP Insurance, also known as Back to Invoice GAP Insurance or RTI GAP Insurance, is a type of coverage that ensures you are protected in the event of a write-off. It covers the gap between what you paid for the vehicle and the insurer's payout, ensuring you are not out of pocket. This type of insurance is particularly useful as vehicles can depreciate quickly, sometimes by up to 60% in three years, and standard insurance policies will only compensate you for the current market value of your car.

Return to Invoice GAP Insurance policies have certain eligibility criteria regarding the age and mileage of the vehicle. The specific requirements may vary depending on the insurer, but generally, the vehicle must be under a certain age, typically up to 8-10 years old, and have a mileage limit, often under 100,000 recorded miles.

For example, MotorEasy's RTI GAP Insurance is available for vehicles up to 8 years old with no more than 70,000 miles on the odometer. The vehicle must also have been purchased within the last 6 months. Similarly, ALA's Back to Invoice GAP Insurance is available for vehicles owned for less than 180 days (or 365 days if the vehicle is covered "new for old" by the motor insurer for the first 12 months) and is limited to vehicles up to 10 years old.

It's important to note that these age and mileage restrictions may differ between insurance providers, so it's always a good idea to review the specific terms and conditions of the policy before purchasing.

It covers theft, accidental damage, fire damage and water damage

Return to Invoice GAP Insurance (RTI GAP Insurance) is a type of insurance that covers the gap between what you paid for your vehicle and the insurer payout in the event of a write-off. This includes theft, accidental damage, fire damage, and water damage.

In the event of a write-off, your insurer will only compensate you for the current market value of your car. This is where RTI GAP Insurance comes in—it tops up the insurer payout so that you have the extra funds to purchase a replacement vehicle or pay off outstanding finance, depending on which amount is greater. This is especially important as your car will depreciate as soon as you drive it off the forecourt, typically by 60% in three years, leaving you out of pocket if it is written off.

RTI GAP Insurance covers theft, accidental damage, fire damage, and water damage. This includes damage caused by burst pipes, plumbing failures, and toilet problems. It is important to note that water damage insurance usually does not cover damage resulting from the homeowner's negligence or failure to maintain the home. Flooding, for example, typically requires a separate policy.

RTI GAP Insurance is available for new and used vehicles purchased from a VAT-registered dealer within the last six months. Used vehicles must be under ten years old and have fewer than 100,000 recorded miles. Policies are available for up to £50,000 and can be paid monthly or annually, with prices starting from £4.13 a month.

It can be purchased for up to four years

Return to Invoice GAP Insurance, also known as Back to Invoice GAP Insurance, is a type of insurance that covers the gap between what you paid for your vehicle and what your insurer pays out in the event of a write-off. This gap can occur due to vehicle depreciation, which can be as high as 60% in the first three years of ownership. This type of insurance is particularly relevant for those who own their car outright or have financed their car with a personal loan.

Return to Invoice GAP Insurance can be purchased for up to four years and offers several benefits. Firstly, it provides peace of mind by protecting you from financial loss in the event of a write-off. If your vehicle is written off due to an accident, theft, fire, or flood damage, your standard insurance policy will typically only cover the market value of the vehicle at the time of the claim, which may be significantly lower than what you originally paid. This can leave you with a financial shortfall, especially if you have outstanding finance or a loan to repay. Return to Invoice GAP Insurance covers this difference, ensuring that you receive the full amount you paid for your vehicle.

Additionally, this type of insurance offers flexibility in how you use the payout. If you have outstanding finance or a loan, the payout can be used to clear those debts. Any remaining amount after settling those debts is yours to keep, providing financial freedom to use those funds as you wish. This feature ensures that you are not left financially embarrassed after an accident or write-off.

Return to Invoice GAP Insurance also comes with additional features, such as coverage of up to £250 of your comprehensive insurance excess and the option to amend personal details on the policy without any charges. It is important to note that eligibility criteria may apply for this type of insurance, including requirements for the age of the vehicle, ownership status, and the dealer from whom the vehicle was purchased.

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