Agreed Value Gap Insurance


You’ve bought a car from a private seller for £15,000 and you’re absolutely delighted with it. The only small fly in the ointment is that you don’t have an invoice from a VAT registered garage which means you can’t cover it with a Back to Invoice or Vehicle Replacement GAP policy.

So how annoying is it, then, when it’s involved in an accident that writes it off? Very. Not just because you really liked that car, but also because there’ll be a big gap between the £15,000 retail value of your car when you insured it and the likely £10,000 payout on your standard Comprehensive insurance. A £5,000 gap, to be precise.

ALA’s Agreed Value Gap Insurance takes the pain out of this situation by filling in the gap between the Glass’s Guide value at the time of policy purchase and the amount of your Comprehensive settlement. In this case, on top of your standard £10k settlement you’ll get £5,000 from your Agreed Value GAP Insurance. Nice.

To take out Agreed Value GAP Insurance for up to five years, your non-excluded vehicle needs to be under 10 years old and have fewer than 100,000 miles on the clock. The car can either have been bought from a private seller or it could have been bought from a dealer, but you’ve had the car for more than 180 days (which means the vehicle doesn’t qualify for Back to Invoice or Vehicle Replacement insurance). There are no policy amendment or transfer fees, and you can buy the policy at any time as long as the other conditions just mentioned are met.

Losing a car you love is bad enough, but the realisation that your standard insurance won’t cough up enough money to get another one just like it is even more depressing. Agreed Value GAP Insurance neatly solves that one for you.