This RTI GAP Insurance guide is here to help you understand what is meant by the term RTI Insurance, what it covers, and the advantages and disadvantages of purchasing a RTI GAP policy.
RTI Insurance will cover you if the car you have financed is written off or stolen within the term length of the finance agreement, and the insurance pay out is lower than the amount of finance you have left to pay. The RTI Insurance will then cover the difference between what the insurance company has paid out and the original price you paid for the car on the sales invoice. This difference will also include the deposit that you paid when purchasing the vehicle.
With more than 450,000 accident related write-offs a year in the UK, many drivers find themselves owing money on their finance agreements when the insurance company doesn’t match the price originally paid for the vehicle on the sales invoice.
If the car you have financed is written off or stolen and the insurance pay out is less than the amount owing on the car and you have no other cover you are responsible for making up the difference with the lender.
RTI GAP Insurance can be extremely useful and save you a lot of worry, stress and money if you have taken finance out on a vehicle and then have your vehicle written off or stolen within the term of your finance agreement.
RTI GAP Insurance will put your mind at rest knowing that what you paid for the car at the time of purchase is what you will receive back, therefore putting you in the same financial position prior to the claim.
It is important to remember that RTI GAP Insurance only covers you when your car has been deemed a total write off or has been stolen. It is important to weigh up the chances of this happening within the first year before making a decision as to whether to proceed.
"GAP insurance covers the amount on a loan that is the difference between the asset value and the amount covered by another insurance policy. Some GAP policies also cover the deductible. This coverage is marketed for low down payment loans, high interest rate loans and loans with 60 month or longer terms. GAP insurance is typically offered by a finance company at time of purchase. Most auto insurance companies offer this coverage to consumers. GAP insurance is usually paid upfront and, for that reason, one is eligible for a refund if he/she sells or refinances their vehicle."
This data has been put together with help from the Creditplus Customer Advisors. For more questions and answers on insurance visit our dedicated car insurance section with our Help and Advice pages.
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