What is van gap insurance?

Many purchasers of commercial vans will use a finance company. It’s important to be aware that if their vehicle is written off or stolen, their insurance policy, including a fully comprehensive one, will only cover replacing the van at its current market value rather than the owner’s purchase price.

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Because vehicles depreciate quickly in the first year – or indeed from the moment they are driven off the sales site – there is a risk that the owner may owe more to the finance company than their insurance company will pay out in the event of either of the above incidents.

Guaranteed asset protection (GAP) insurance is an option to cover this eventuality. With GAP, you can insure against the difference (up to a maximum of £20,000) between your insurance payout and the amount you owe the finance company.


This insurance is available in addition to the main motor insurance and is not a replacement for general insurance.

One of the issues that van purchasers will need to take into consideration is the possibility that they may have increased the value of the van by accessorising their vehicle via companies such as http://www.vehicle-accessories.net/Interior/Van-Linings/Waterproof-Van-Linings/Speedliner.

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For example, adding an after-market liner may increase the value of the vehicle and offset some of the initial loss if an insurance claim takes place. A polymer spray such as Speedliner is a good example.

When looking at GAP, it is important to check the eligibility of the vehicle. It is available for new, used, leased, business-owned or privately purchased vehicles.


There are different kinds of policies available on the market.

GAP insurance is available for new, used, leased, business-owned or privately purchased vehicles. There are several different types of policies. The main one is RTI Combined (also known as Return to Invoice/Financial Shortfall combined product) and Return to Invoice (also known as Invoice Price Protection) GAP. Other types of GAP include Finance GAP, Return to Value GAP and Equivalent Value/Replacement GAP. Make sure that you buy the type of policy that best suits your needs, and includes Transit Van Servicing.

Regardless of the cover the owner chooses, if the vehicle has been paid for in instalments, both the GAP insurer and the vehicle motor insurer are likely to pay the finance company first. The owner will receive anything extra after the loan has been paid back.

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