GAP Waiver is a simple non-insurance alternative to GAP Insurance.

Unlike GAP Insurance where the customer takes out a separate insurance policy with a third party insurer which pays out in the event of a financial shortfall between the finance balance and the road risk insurers’ payment in the event of a total loss claim, GAP Waiver is far simpler. With GAP Waiver there is no third party insurance provider from the customers’ perspective and no requirement to be FCA authorised for the sale of ‘insurance products??? from the lenders perspective. It is merely the lender promising to waive any remaining balance following a total loss claim.

GAP Waiver provisions are drafted into the terms and conditions of the finance agreement and act as a promise between the customer and the lender. These provisions may be active for every customer within the rate charged or may require activation upon payment of an additional fee.

Deposit Waiver

With waiver it is also possible to offer an equivalent non-insured waiver option to replace RTI GAP whilst also retaining a customer’s business. Following a total loss claim, Deposit Waiver is simply a promise from a motor dealership to reduce the cost of another vehicle by the amount of the deposit paid by the customer. To discuss GAP Waiver contact us today!