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Return to Invoice GAP Insurance
What is Return to Invoice GAP Insurance?
Combined Return to Invoice covers the difference between what your motor insurance market value settlement at the point of write off and the HIGHER of:
1. The original invoice price you paid for the vehicle.
2. The outstanding finance settlement.
Return to Invoice GAP Insurance is also known as
- Back to Invoice
- Retail Price Protection,
- Invoice Gap insurance
- RTI Gap insurance
- Return to Invoice
Return to invoice is the most typical type of GAP Insurance cover offered by motor dealers. For online providers, it is most commonly provided alongside Vehicle Replacement GAP for retail car buyers.
How Does RTI GAP Insurance Work?
You bought a 640d M Sport series Gran Coupe in April 2018 and paid £66,170.
- Forty months later, the car is stolen.
- The motor insurer settles the market value.
- Glass's Guide (data taken from Glass's Guide August 2021 values the car between £26210 - £28680
- WeBuyAnyCar (data taken from WeBuyAnyCar August 2021 ) values the car at £27390
- A RTI GAP policy would pay the difference between the original price paid (£66,170) and the motor insurer settlement (£28680)
Therefore £66,1700-£28680 = £37490 RTI GAP settlement
Why do you want to RTI Gap insurance Cover?
According to the AA ( data taken from the AA car deprecation guide 24/08/2021 ) by the end of the 1st year, a new car can lose up to 40% of its value. They go on to say that even with a modest mileage of 10,000 miles per year by the end of year three this could be as much as 60% loss in value.
If your vehicle is written off by your primary motor insurer following a theft, fire, flood, accident (fault or not), etc., then your motor insurer may only cover the market value of the vehicle. This is despite your motor insurance being 'fully comprehensive' in nature. 
If your motor insurance company settlement could be a fraction of the original purchase price you paid, ultimately, you could be left with two potential financial issues:
- You only have the motor insurer settlement amount to use to get a new vehicle.
- If you have finance still outstanding, you have to use the motor insurer settlement amount to clear the finance. This may not be enough, and you still have to find funds to buy a new car.
The key features of GAPInsurance123 Combined Return to Invoice.
These will include:
- The combined cover covers the HIGHER of the finance settlement, the original invoice price you paid.
- RTI GAP Insurance PAYS YOU A CASH SETTLEMENT
- Up to 5 years of cover is available for vehicles up to £100,000.
- Transferable RTI GAP Insurance policy - you have one free policy transfer to an eligible vehicle per policy term.
- £250 towards your own motor insurance excess - If the vehicle is written off, there is no excess on our policy to be deducted. We pay the first £250 of your vehicle insurance excess.
- Covers All Factory Fitted Options
- Includes cover for up to £1,500 of dealer-fitted accessories
- Covers theft with keys
- You can buy cover up to 180 days after purchasing a vehicle from your dealer. If you buy a brand new vehicle and have new car replacement cover with your motor insurer, this can be extended to 365 days.
- It covers all named drivers over the age of 18
Will your RTI gap insurance cover Warranty costs?
Your policy may cover warranty costs on the understanding that
- You can not cancel them or claim any unused proportion.
- You can not transfer the balance to your next car.
- You have not already had the benefit. For example, you bought a two-year warranty, and your car is stolen in the third year.
When can you buy Return to Invoice cover?
The time frame within which you can buy cover depends significantly on the provider from which you buy it.
With motor dealers, the window may be as short as 30 days after you buy your vehicle.
It can be anywhere between 45 days and 365 days from the vehicle purchase with other providers.
With the new GAPInsurance123, Combined Returned To Invoice GAP, the maximum period from the vehicle purchase you can buy the policy is 180 days.
Where can you buy Return to Invoice GAP?
You will first be told about GAP cover when buying the car from the motor dealer. New GAP Insurance rules, brought in by the Financial Conduct Authority in 2015, mean that motor dealers now must provide a short period for customers to assess alternatives.
There are, in reality, several places you can look to buy return to invoice from, including:
- the supplying motor dealer for the car
- an independent insurance broker specialist (like GAPInsurance123)
- a motor insurer
- a motor finance company
You may find that the motor dealer's products are considerably more expensive than comparable products from the other potential options. I'll explain the reasons for that later.
Who would benefit from and qualify for Return to Invoice Insurance?
This could be an individual, or a company, looking to protect an investment against the effects of depreciation if the vehicle was written off.
The policyholder must have an 'insurable risk' in the vehicle. This means they could suffer financial loss if the car were written off. An example of this is the vehicle owner, who has their name on the purchase invoice for the vehicle.
Another example is someone who has a finance agreement on the vehicle, such as a PCP or Hire Purchase.
The policyholder must also be named on the main motor insurance policy and be fully comprehensively insured.
Return to Invoice and Vehicle Replacement GAP - What is the difference?
The critical difference between RTI GAP and Vehicle Replacement GAP comes with the settlement the GAP cover is looking to protect for you.
An invoice GAP Insurance policy covers you back to the original invoice price you paid for the vehicle.
Vehicle Replacement GAP covers you back to the cost of the equivalent vehicle to the one you bought, but crucially on the day, you bought it. So if you purchased a brand new Ford Fiesta S.T. 2 initially, it is the cost of a brand new Ford Fiesta S.T. 2 when you make your claim.
This means that using our example above, the cost of a new Fiesta S.T. 2 increases, then this extra amount is provided by a Vehicle Replacement GAP policy over a style of RTI GAP insurance cover.
What is Combined Return to Invoice? 
When a GAP policy is said to be 'combined,' it combines more than one type of GAP Insurance.
Combined Return to Invoice GAP (also known as Combined R.T.I.) means an RTI GAP insurance combined with a Finance Shortfall GAP policy. Finance GAP is designed to cover any shortfall between the motor insurance settlement and the outstanding finance settlement required.
By adding R.T.I. GAP Insurance to Finance GAP in this way, this means that in the event of a claim, your Combined RTI GAP Insurance covers the difference between:
The motor insurance settlement AND HIGHER of
- the outstanding finance settlement
- the original invoice price paid for the vehicle
Do I need a Return to Invoice GAP if I have bought the car outright (i.e. a cash buy)?
People sometimes think that a GAP Insurance policy is only needed if you take a car on finance. This is not necessarily the case.
For people who pay cash for their vehicle, it is true to say that they do not have any financial liability. However, they have invested a large amount of money in the purchase of a new car.
If you take an R.T.I. GAP policy out on a brand new car that you have bought outright. The advantage of this is that the total invoice price would be returned to you if you ever had to make a claim. This is because there is no financial settlement to worry about.
Can you take out Return to Invoice GAP insurance at any time?
No, usually, you can only take RTI GAP Insurance within a set time frame of buying the vehicle. Every invoice Gap insurance policy we supply from August 2023, the maximum period you can purchase cover is 180 days from the vehicle purchase.
If you get other GAP insurance quotes, you may see that this period can differ from insurer to insurer.
What is insurance premium tax (I.P.T.)?
Insurance Premium Tax is a tax paid on insurance products. The Government sets the rate of I.P.T.
When you buy an insurance cover from an independent broker, like GAPInsurance123, you pay the standard rate of Insurance Premium Tax at 12%.
If you buy an insurance policy from the supplying motor dealer, you could be paying the higher rate of Insurance Premium Tax, currently 20%.
What happens if a financed car is written off?
If you have a Return to Invoice policy on a financed vehicle, then the claims process would be as follows.
- The motor insurance would write off the vehicle and pay you the current market value at that time.
- The Return to Invoice GAP Insurance would pay the difference between the motor insurance settlement and the initial invoice price you paid for the vehicle.
- The finance settlement would be paid off from the total settlement you received (i.e.. the car insurance settlement plus the R.T.I. GAP Insurance settlement).
- Whatever is left over after the finance has been paid off is your money towards a replacement vehicle.
Why is Return to Invoice GAP Insurance cheaper from GAPInsurance123 than from the motor dealer?
If you are looking for Return to Invoice GAP Insurance, you can compare premiums and terms from several providers. If you get a GAP Insurance quote from your motor dealer and compare that to GAPInsurance123, you may find a considerable difference in a premium price.
This is down to many factors:
Insurance Premium Tax: you pay only the standard rate of I.P.T. with your GAPInsurance123 policy. You may pay the higher I.P.T. rate of 20% when you buy from the motor dealer.
Commission margins: GAPInsurance123 works to fixed, low commissions per policy sale. The motor dealer traditionally works with much higher commission margins.
Economy of scale: Motor dealers can only sell a GAP policy to someone they sell a car. GAPInsurance123 is available to the whole marketplace. GAPInsurance123 is likely to sell far more policies than the motor dealer. We can drive very keen rates with our insurers.
What is the difference between RTI GAP Insurance and RTV GAP Insurance?
Return to Invoice GAP Insurance (RTI GAP) can be taken when you buy a vehicle from a VAT registered motor dealer. This could be a new or used vehicle. The key is that in the event of a claim that a VAT invoice can be produced and the RTI GAP can pay back to that figure.
Return to Value GAP Insurance (RTV GAP or Agreed Value GAP) is used when you do not buy your car from a VAT registered motor dealer. If you buy from a private seller, or an auction, then you will not get a VAT Invoice for a retail sale produced. RTV GAP Insurance uses the retail value of the vehicle at the start of the policy as the value, rather than any invoice price. The 'agreed value' will be defined by Glass' Guide in most products of this type.
Is GAP Insurance compulsory?
No, GAP Insurance is not something you have to take by law. The decision as to whether you buy GAP Insurance, or which type if you do, is a decision for you.
Who are GAPInsurance123?
- GAPInsurance123 is a trading name of Aequitas Automotive Ltd.
- Aequitas Automotive Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom (F.C.A. reference number 821163).
- Aequitas Automotive Ltd is a registered company in the U.K. Our company registration number with Companies House is 006652.
- Aequitas Automotive Limited has a registered office at Aequitas House, 56 Hamilton Square, Birkenhead, Merseyside, CH41 5AS.
- Aequitas Automotive Ltd is a registered insurance broker with the British Insurance Brokers Association (BIBA) membership number 006652.
How is Combined Return to Invoice GAP Insurance from GAPInsurance123 protected?
Your GAPInsurance123 GAP policy aims to provide you with peace of mind all the way.
In terms of the policy, the protection comes from the strength of the underwriter being A-rated and a Lloyds of London syndicate.
GAPInsurance123 as a brand has over a decade of experience in the field of GAP Insurance. The brand is a trading name of Aequitas Automotive Ltd, a specialist broker who runs many brands in the ancillary motor product field.
Aequitas Automotive Ltd is directly authorised and regulated by the Financial Conduct Authority and carries net assets well above £1 million at company's house.
Finally, protection by the Financial Services Compensation Scheme is available for qualifying customers should the insurer fail to meet their obligations.
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Updated 26/09/2024, written by Mark Griffiths
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Easy straight forward and good value.
Really easy to understand, good value, simple to set up
Very impressed with the help I received over the phone from **** explained my options very clearly and guided me through the process of applying for cover. I've used GapInsurance123 before and am very happy to do so again!
Nice and easy
Amazing & easy
Always easy to do business with and staff are very helpful and efficient
Thank you Jackie for your help. Highly appreciated for great service...!
Quick simple process, appreciate note about 12 month vehicle replacement may be covered on my insurance already, it was.
I called to clarify a couple of things before purchasing and spoke to a lady called Jackie, very pleasant and extremely helpful. I wouldn't hesitate to recommend GAP 123.
Great service, very friendly call handler
easy site to used very pleased with price
VERY EASY TO USE AND COMPLETE. EXCELLANT PRICE HIGHLY RECOMMEND.
Very quick an easy, but the only slight disappointment is that is no where to get your existing customer discount on the web site. You have to phone for that and if you need the cover to start at the weekend you miss out. Shame.
good
Really easy to understand and follow.
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