GAP Insurance - Why is it so important?
Why is covering your car with GAP Insurance so important?
GAP Insurance provides an essential layer of financial protection for Mercedes-Benz owners. In the unfortunate event of your vehicle being declared a total loss, traditional insurance typically compensates you based on the vehicle's market value at the time of the incident.
However, if you are still financing your Mercedes-Benz, the outstanding loan amount may significantly exceed this market value due to depreciation. GAP Insurance bridges this potential shortfall, covering the difference between the insurance payout and the outstanding finance amount or the original purchase price, whichever is higher.
This policy can help to mitigate financial loss in the event a vehicle is declared a total loss.
What is insured by GAP Insurance?
Your vehicle providing that:
During the period of insurance, following the total loss of your vehicle due to fire, theft, accidental damage or adverse weather conditions, we will pay the financial the shortfall between the insured value and:
the purchase price of your vehicle, including delivery, factory fitted accessories and dealer fitted options as confirmed in the net sales invoice; or
the early finance settlement amount; whichever is greater, up to the sum insured.
We will also cover up to £250 of your motor insurance excess.
We provide a minimum payment clause. This means, in the event of a total loss of your vehicle during the period of insurance, we will make a minimum payment (dependent on the original purchase price of your vehicle) or will make a payment equal to the premium you paid for this insurance, whichever is the greater.
What is not insured by GAP Insurance?
If the vehicle is:
Written off by someone not eligible to drive your vehicle under the terms of the motor insurance policy for whom you gave consent or where the person driving your vehicle did not have fully comprehensive insurance in place for the vehicle.
We will not cover:
Your vehicle if you have not claimed under the Motor Insurance Policy or your claim has not been settled as a total loss.
Any amount due under the Finance Agreement relating to insurance premiums. We exclude all deposit allowances, discounts, rebates, concessions, cashbacks, incentives and contributions. We also exclude new vehicle registration fees, road fund licence fee, number plates, warranty costs, fuel, paintwork protection applications, other extras, arrears or Negative Equity.
Learn more about the insurance products we offer here.