In a nutshell.

Wrote off my car.

Got gap insurance but turns out my normal insurance had been cancelled.

Will gap cover the cost of repairs?

Finance Gap insurance covers the difference between finance settlement figure and the insurance settlement if the car has been written off by the insurers. If the insurers decide to repair the car then GAP insurance is not applicable because the vehicle is still in existence and (presumably) the finance agreement can carry on unaffected.

RTI (Return to Invoice) GAP is similar but is designed for when there in no finance agreement and instead pays out the difference between the insurance settlement and the original invoice price of the car.

Both of the above policies rely on the existence of a valid (usually fully comprehensive) motor insurance policy being in place on the car - it will be written into the T's & C's of the policy. If a policy was not in place then it is likely that the GAP insurers would refuse to entertain any claim. Regardless of this, the policy is NOT intended to pay for repair to the car, just cover the differences as stated above.

Hi Debtspiral

As I understand it (we looked at Gap insurance when purchasing our last car) the gap insurance is purely to cover the difference between what your insurance company would pay up and the price you paid for your car - should your car be stolen or written off. For example if you paid £10000 for your car and it was stolen and the insurance only offered £7000, then the gap insurance would pay the additional £3000.

That's my interpretation of the gap insurance. Sorry, I know it's not what you wish to hear.

A very reasonable answer Ron.

Most (If not all) policies stipulate in their Terms and Conditions that a 'Comprehensive' car insurance policy must be in place.

H

In a nutshell.

 

Wrote off my car.

 

Got gap insurance but turns out my normal insurance had been cancelled.

 

Will gap cover the cost of repairs?

I think you should find out why your normal insurance was cancelled. If an insurer is going to cancel someone's insurance, they should notify the policyholder in writing, 14 days in advance. This is especially important with compulsory covers such as motor insurance, so that you have time to arrange alternative cover.

Thanks guys - much appreciated.

Now....how to tell Welcome Finance they can pick up the car in Germany....