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GAP Insurance FAQ

What is GAP insurance?

Guaranteed Asset Protection (GAP) Insurance is a financial product separate from your regular motor insurance that is designed to protect you against financial loss.

If your lease vehicle is stolen or written off (total loss) during your lease period, your motor insurance will normally pay the current market value of the vehicle which may not be enough to cover the finance settlement figure on your vehicle. A GAP insurance policy covers the difference between the current value of the car (the amount your car insurer will usually pay out) and the contract hire early settlement figure, including up to £1500 advance rentals.

You can find out more about GAP insurance on our GAP Insurance Explained guide.

Which sort of GAP Insurance policy do Nationwide Vehicle Contracts offer?

Our GAP Insurance policy is called Contract Hire GAP insurance (also known as Finance GAP) and is specifically designed for vehicles on Contract Hire and Personal Contract Hire agreements.

Contract Hire GAP insurance pays any outstanding debt owed on the contract hire early settlement figure that is not covered by your motor insurance policy.

What are the benefits of Contract Hire GAP?

Contract Hire GAP insurance is worth considering if:

  • You’re on a contract hire or personal contract hire deal
  • You paid a small initial rental for your finance deal (e.g. 20% or less)
  • You’re paying the debt off slowly (e.g. over three to five years)
  • You don’t have enough personal savings to pay the difference
  • You’ve taken out a long-term contract hire arrangement in which you might end up owing more than the value of your car

What are the disadvantages of Contract Hire GAP?

Contract Hire GAP insurance is not worth considering if:

  • Your motor insurance policy offers a brand new car replacement during the first 12 months of ownership (subject to restrictions or exclusions)
  • You’re already covered by your finance agreement
  • You can afford to make up for any shortfall
  • The GAP insurance only pays out if your normal car insurance company says the car is written off (total loss) or unrecoverable

Is GAP insurance required when leasing a vehicle with Nationwide Vehicle Contracts?

Unlike comprehensive motor insurance which is compulsory, GAP insurance is an optional product and is not legally required when leasing a vehicle with Nationwide Vehicle Contracts. Whether you choose to take out a GAP insurance policy is up to you however it is worth noting that you only have a limited amount of time to take out the policy.

As with every type of finance product, it is important that fully research the benefits and considerations before taking it out to ensure it is right for you. It is also important that you pay attention to the fine print as there are exceptions to the policy.

How long do I have to take out a GAP Insurance policy?

You must apply for a policy within 60 days of delivery of your vehicle.

How do I pay for the GAP policy?

You can choose to pay for the GAP insurance premium as one lump sum or by 12 monthly interest free direct debit installments.

If you wish to pay for the premium in full, you can pay by debit or credit card or by BACs payment.

Who is the underwriter for the GAP policy?

All of our GAP insurance policies are underwritten by MAPFRE Asistencia Compania Internacional de Seguros y Reaseguros Sociedad Anonima, trading under the name MAPFRE Assistance. MAPFRE ASSISTANCE is a global insurance, reinsurance and services company founded in Madrid (Spain) in 1989 and operating worldwide.

MAPFRE Asistencia Compañía Internacional de Seguros y Reaseguros, S.A. branch in the United Kingdom (trading as MAPFRE Assistance) has registered offices at 5th Floor, Alpha House, 24a Lime Street, London EC3M 7HS and is subject to limited regulation by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) according to the European Union Regulation.

Is my vehicle covered for GAP Insurance if I take the vehicle abroad?

Provided your lease vehicle is insured at all times under an authorised UK Motor Insurance policy which provides comprehensive cover, the GAP insurance cover extends for trips across European Economic Area.

To maintain their fully comprehensive motor insurance, customers will need to tell their motor insurance provider that they are going abroad. If you do not do this, your insurance could be invalid and this will invalidate the GAP policy.

Is there a mileage restriction?

No there is no mileage restriction for how many miles you do once you have bought the policy.

Does the policy cover my vehicle if it is stolen?

GAP insurance covers you in the event your vehicle is stolen and not recovered, or damaged beyond economic repair provided your insurance company declare it as a total loss and offers you a settlement.

It is important to note, however that your GAP insurance policy will not cover you if your motor insurance company refuses to settle or significantly reduces the payout because of unpaid premiums, salvage value or contributory negligence. If your vehicle was stolen as a result of negligent behaviour (e.g. you left the keys in the ignition whilst de-icing or paying for fuel) and the insurance company reduces or refuses to payout, any GAP insurance will not be honoured.

Do you cover named drivers?

Yes, as long as your own motor insurance will insure them to drive your vehicle fully comprehensively then they will be covered on your GAP insurance policy.

Is the policy transferable to another vehicle?

The policy is not transferable to another vehicle.

I am going to put a private plate on my vehicle, will this be a problem?

If you need to change the registration number on your policy because you have added a private plate to your vehicle, please let the Administrator know by writing to them at the below address:

Abraxas Insurance Administration Services Ltd, 1 Victoria Street, Bristol Bridge, Bristol, BS1 6AA.

Is there an excess I will need to pay similar to my own car insurance?

No there is no excess on a GAP Insurance policy, in fact should you need to make a claim on your gap insurance policy, the underwriters will pay you £250 towards your motor insurance excess.

Are maintenance charges covered by the Contract Hire GAP policy?

No, the GAP policy covers your liability for the vehicle rentals only. Other costs which are not covered include:

  • Road Fund Licence
  • Excess mileage charges
  • Late payments or arrears

Do you charge for policy amendments?

All amendments to your policy details are free of charge. If you need to change your address, highlight errors on your schedule or amend your registration number, you can amend your policy details at any time by writing to them at the below address:

Abraxas Insurance Administration Services Ltd, 1 Victoria Street, Bristol Bridge, Bristol, BS1 6AA.

Please note, an administration fee is only charged for cancellations outside the 30 day cooling off period.

Can I cancel my GAP policy?

You can cancel your GAP policy at any time.

If you cancel your policy within 30 days from the start date, you will not be charged a cancellation fee and will receive a full refund of the Premium under this Policy provided no claims are known or reported.

If you cancel your policy after the first 30 days, you will be entitled to a daily pro-rata refund on the remainder of your policy based on the date the Administrator receives the letter, email or phone call minus a fixed amount of £35 to cover costs. No refund is available if any claims has been submitted.

To cancel your GAP insurance policy, please provide written notice of cancellation and quote your certificate number (found on the Certificate of Insurance) to:

Email: cancel@mapfre.co.uk

Telephone: 0330 400 1657

Address: Abraxas Insurance Administration Services Ltd, 1 Victoria Street, Bristol Bridge, Bristol, BS1 6AA.

How do I make a claim?

If you need to make a claim on your GAP insurance policy, you must follow the procedure detailed in your policy documents. You will need to contact the Administrator within 30 days and before you accept an offer of settlement from your motor insurance company.

You can contact the Administrator by calling 0330 400 1657 or emailing gapclaims@mapfre.co.uk who will provide you with a valuation and send you a claim form.

You must also send the following documentation to the Administrator within 30 days of the loss for claims authorisation;

  • Your motor insurance policy certificate and schedule
  • The motor insurance settlement letter
  • A copy of the Contract Hire agreement and the Contract Hire Early Termination Charge from the finance provider

Please send this documentation direct to the Administrator at:

Address: Abraxas Insurance Administration Services Ltd, 1 Victoria Street, Bristol Bridge, Bristol, BS1 6AA

What is a claim limit?

A claim limit is the maximum amount over and above your vehicles valuation on the day it was written off that you will ever be able to claim from your gap insurance policy. For Contract Hire GAP insurance, the claim limit is up to £10,000 for the full duration of the contract.

I want to complain about the sale of GAP policy, who do I contact?

If you wish to complain about the way the policy was sold to you, please follow Nationwide Vehicle Contracts Complaint Procedure.

If you wish to complain about a claim or the Administration of the policy then the complaint should be addressed to:

Customer Care Manager, Abraxas Insurance Administration Services Ltd, 1 Victoria Street, Bristol Bridge, Bristol, BS1 6AA

If the complaint is not resolved to your satisfaction, you may contact the Financial Ombudsman Service at:

Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

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