Return to Value GAP Insurance

What is Return to Value GAP insurance?

Return to Value (RTV) GAP insurance, also known as Agreed Value GAP insurance, covers you if your vehicle is stolen or written off. It will pay you the difference between the amount you receive from your motor insurer and the value of your vehicle at the time of taking out the RTV GAP insurance policy.

Agreed Value GAP insurance is available on vehicles bought from a dealer or a private seller. Because it is based on the value of your vehicle when you took out the GAP policy, not how much you paid for it, you won’t need to show an invoice to get your policy, unlike if you choose Return to Invoice GAP insurance (see below).

You can also purchase RTV GAP insurance at any time, unlike other types of GAP insurance, which often require you to buy a policy within a certain number of days after purchasing your vehicle.

How does Return to Value GAP insurance work?

When you take out a Return to Value GAP insurance policy, the provider will independently verify the retail value of your vehicle using Glass’s Guide or a similar industry expert. This will be the maximum amount you can receive in total if your vehicle is stolen or written off.

If the worst should happen and your motor insurer declares your vehicle a total loss, your insurer will pay out the amount that your vehicle is worth at the time of the claim. As your vehicle will have depreciated, this amount will usually be less than the value of your vehicle at the time of taking out GAP insurance.

As long as your motor insurance claim is settled, your RTV GAP insurer should make up the shortfall so you will receive the full amount that your vehicle was worth when you took out the policy.

For example, your car might be worth £10,000 when you take out an RTV GAP insurance policy. If it is written off two years later, it might only be worth £6,000 which is what your car insurer will pay out. Your GAP insurance will then pay the remaining £4,000.

Is Return to Value GAP insurance worth it?

You might want to take out a Return to Value GAP insurance policy if you are worried about your motor insurer paying out less than the amount your vehicle was worth when you bought it. GAP insurance can make up the shortfall, so you wouldn’t need to make up the difference yourself.

To help you decide whether you need a GAP insurance policy, always consider how much your vehicle is likely to depreciate and whether you need to top up your motor insurance payout. Your insurance should cover the cost of replacing your vehicle, so you only need to buy GAP insurance if you want to be covered for the amount your vehicle was worth when you took out the policy.

» MORE: Is GAP insurance worth it?

Should I insure my car with Return to Value insurance?

If you decide that you do want GAP insurance, the next question is whether you should buy Return to Value or another type of GAP policy. RTV policies are typically intended for those who bought their vehicle from a private seller or those who decided they wanted cover after they bought their vehicle.

Return to Value GAP insurance may be one of your only options if you bought your vehicle from a private seller. Other policies such as Return to Invoice and Vehicle Replacement insurance will usually only cover you if you bought your vehicle from a registered dealer but, because the RTV provider will look at the value of your vehicle rather than the amount you paid for it, you can get this cover no matter where you bought your vehicle.

Similarly, if you decide that you want GAP insurance after buying your vehicle, you may only be able to get Return to Value cover as other policies require you to buy cover within a certain number of days after buying your vehicle.

If you bought a brand-new car from a dealer or your vehicle is on finance, other types of GAP insurance may be more suitable.

How can I get a Return to Value policy?

To get a Return to Value GAP policy, you will need to provide the insurer with your personal information as well as details about the vehicle you want to cover.

If you buy your vehicle from a dealer, they may offer you a GAP policy. However, you can also buy GAP insurance online, which would generally be cheaper than the policy offered by a dealer.

When you apply for RTV GAP insurance, the provider will work out the value of your vehicle and, as long as you meet all their requirements, they should give you a quote. Make sure you look at all the terms in your policy documents, so you know what is covered and what exclusions there are.

How does NerdWallet’s Return to Value GAP Insurance comparison work?

You can compare a selection of Return to Value policies on our comparison table above. Here you will be able to see what policies are available and what the requirements of each policy are, including mileage and age limits and the maximum claims limit.

Return to Value GAP Insurance FAQs