GAP insurance For Taxi & Delivery Drivers (Hire & Reward)

Hire & Reward GAP insurance covers the financial gap between the amount your insurance provider pays out if your car is written off or declared a total loss and the amount you paid for it, or the early settlement amount on a finance agreement.

A Hire & Reward policy will cover those who use their vehicles for business, including taxi drivers and delivery drivers.

Finance and contract hire GAP bridges the gap between the amount your insurance provider is prepared to payout or covers your outstanding finance settlement if you purchased your vehicle on finance.

On the other hand, combined return to invoice (RTI) GAP covers the shortfall between your insurance provider’s payout and the invoice price you paid for your vehicle upon purchase. Alternatively, if you purchased your car on finance, it covers the shortfall between your insurance provider’s payout and your outstanding finance settlement.

If you’ve ever had a vehicle be declared a total lost, you’ll have the misfortune to know that insurance compares rarely pay out the total value of a vehicle or the full outstanding payments on a car loan when it’s written off.

Therefore, without GAP insurance, you could end up paying finance instalments on a car you no longer have. Or, you might find yourself in a financial deficit when buying a new vehicle if you receive far less money than the vehicle’s worth at purchase.

This type of policy could prove beneficial for any motorist, but as a taxi driver or courier, your vehicle is particularly important to you, after all, it’s your livelihood.

Hire & Reward GAP insurance protects you against getting a much lower current market value back for your vehicle, meaning you’ll have more money to get yourself back out on the road.

• Any amount due under a finance agreement relating to arrears, dealer fitted options, insurance or warranty, and any interest payable on these items, or any amount not relating directly to the market value of the vehicle at the time of purchase.
• Your vehicle was the result of a theft when your vehicle was left unoccupied (that is, nobody is inside it) and was left unlocked, with the windows or roof open or with the keys inside or on it.
• Your claim under a vehicle insurance policy is declined and you have not received the vehicle insurance settlement.
• Where the loss is caused when the vehicle is driven, with your consent, by someone who does not hold a valid driving licence or is in breach of the conditions of that driving licence.

The policy will not pay out for a total loss of the vehicle if:

• Your vehicle is used as an emergency or military vehicle.
• Your vehicle is a non-UK specification vehicle or not built primarily for sale in the UK, or is classed as a grey import, kit car, bus, coach, commercial vehicle weighing more than 3.5 tonnes, truck, heavy goods vehicle or static caravan.
• The vehicle is used for road racing, rallying, pace-making, speed testing or any other competitive event.
• The vehicle has been modified other than in accordance with the manufacturer’s specifications.
• Your vehicle is stolen by any person who has access to the vehicle’s keys.

Other exclusions apply, see terms and conditions for full details.

You’re covered for up to 90 days in a 12-month policy period when driving outside of the UK, Channel Islands or Isle of Man.

However, make sure to check your policy wording for any specific exclusions.

Your cover starts on the policy start date found in your Policy Schedule. When your cover ends will depend on the length of cover you have chosen and could continue for a period of 12, 24, 36, or 48 months depending on the length of cover selected.