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Gap insurance for your Toyota

At Shortfall.co.uk, we can provide Gap Insurance for your Toyota.

Gap Insurance is a form of financial protection designed to protect you against the costs of depreciation should your vehicle be declared a total loss. The average vehicle would lose approximately 50% over a three-year term if your vehicle were declared a total loss. i.e. stolen and not recovered or written off in an accident, your motor insurance company would only ever pay the value of the vehicle at that time.

This could leave you in a very vulnerable position financially, but this is where Gap Insurance can protect you from the effects of depreciation. You can purchase three main types of Gap Insurance for your Toyota. These depend on how you have purchased the vehicle, and different purchase methods will result in one type being more suitable than the other.

Return to Invoice Gap Insurance

This form of Gap Insurance is designed to protect the price you have paid. In the event of a total loss, this policy will bridge the gap between your motor insurance settlement and the original invoice price you have paid, for example. Let's say you have paid £18,000 for your Toyota. Three years later, it's stolen and not recovered, and your motor insurance company only offer you £9,000. This policy will pay an additional £9,000 to top you back up to the original purchase price of £18,000.

Vehicle Replacement Gap Insurance

This form of Gap Insurance is designed to protect the vehicle's replacement cost. As in the example above, you may have paid £18,000 to buy that same car again three years in the future, but it may now be £20,000. In the event of a total loss, this policy will bridge the gap between your motor insurance settlement and the replacement cost of another 'like for like' Toyota at that time. For example, let's say you have paid £18,000 for your Toyota. Three years later, it's declared a total loss and your motor insurance company only offers you £9,000. Due to inflation and price increases, the replacement cost at that point is now £20,000. This policy will pay an additional £11,000 to top you back up to the replacement cost of £20,000.

Lease & Contract Hire Gap Insurance

This type of Gap Insurance is different to the types of Gap Insurance listed above. This type is only suitable for vehicles that have been purchased in the form of lease or contract hire where you don't have the option to keep the vehicle. Instead, you have to hand it back. This policy bridges the gap between your motor insurance settlement figure and the amount outstanding on your lease/contract hire agreement. Therefore, resulting in you having no outstanding financial liability.