Guaranteed Asset Protection (GAP)
Invaluable cover for motorists
Many people don't realise, until it's too late, that an insurance company will only pay out the market value of a car that's been written off.
It doesn't matter how much you think your vehicle's worth. It doesn't matter how much you bought it for. Too many people find that they have an insurance payout that doesn't cover the outstanding amount on the loan they used to buy it.
GAP ensures that there's no shortfall between the motor insurance payout for a write-off and the amount left outstanding on the loan.
- It's the best way to protect your investment
- It covers shortfalls up to £5,000
- It provides cover for the full term of the loan
- It covers vehicles of all ages
- All insurance write-offs are covered whether due to damage or theft
We're the only major loan provider that provides GAP cover with loan protection at no extra charge*. Bought separately, it could cost you £150 or more**.
Just look at how GAP cover from Alliance & Leicester can really make a difference:
A customer takes out a £15,000 personal loan to pay for a new car. After 2 years the car is written off and the insurance company pays out the market value which is deemed to be £9,000. The amount outstanding on the loan is £10,500 - the customer is therefore left with £1,500 to pay on the loan after the insurance payout
Luckily the customer bought GAP insurance so the £1,500 will be covered and the loan fully paid off. The insurance will also cover the £250 excess on the motor policy.
Total payout £1,750 and we have one satisfied customer!
*Source: Survey of personal loan payment protection policies from British Bankers Association members, February 2006.
**Source: Competitor online quotes based on a loan of £15,000.
