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Gap Insurance - a guaranteed Asset protection insurance for used cars in Spain.



What is GAP- Guaranteed Asset Protection Insurance for Cars? 

GAP Insurance or Guaranteed Asset Protection Insurancein Spain will provide you with a replacement vehicle if the costs of repairs to your own vehicle are greater than the value of your car. 

This is the only GAP insurance in Spain that will provide you with a replacement vehicle if, after an accident, the cost of repairs to your car is greater than the value of your car or is classified as a total loss or write-off.

Older cars In Spain are not always insured fully comprehensive due to the cost to value ratio and as the vehicle gets older, the market value of your car in Spain drops significantly and, if involved in an accident or collision involving relatively minor bodywork damage, the car may be declared a total write-off and the compensation may not be sufficient to buy a replacement vehicle. 

This Gap insurance provider will provide you with a similar vehicle and total peace of mind without you having to pay any more. 

When should you take out a GAP vehicle policy?

Your car must have a value of at least €2,000 at the time of taking out this GAP insurance in Spain, and must be over 7 years old. 

How does GAP insurance in Spain work?

1.   You own an 11 year-old Spanish registered car.

2.   You are involved in an accident or collision, which damages the bodywork of the vehicle.

3.   Cost of repairs say                                                                       €3,200 

4.   Market value of your car at the time of the accident                     €2,200

5.   Result = A total write off.

6.   At this point you can chose a replacement vehicle with similar characteristics, you chose the colour, model, horsepower etc.

7.   They value your (total loss) vehicle at 120% of its market value.

8.   The GAP insurance company in Spain will search the second hand car market to find you a like for like vehicle within a specified period.

9.   During this period the GAP insurance provider may provide you with a courtesy car as long as the cost of repair is higher than the value of your vehicle.

10.Vehicles they offer you will come with a one-year, unlimited mileage guarantee.

11. If you select one of the vehicles offered to you by the GAP insurance company in Spain as a replacement vehicle, they will arrange and pay for all of the transfer documents.

12. The vehicle is delivered to your door.

Q. & A. 

Q. Is the replacement vehicle yours?

A.Yes, it is a replacement vehicle, not a courtesy one and it will be registered in your name.

Q. Who pays the change of ownership costs?

A.The GAP insurance provider covers all the costs and taxes relating to the change of ownership and transfer of the vehicle. 

Q. What happens if I have problems with the replacement vehicle once it has been delivered?

A. The replacement vehicle comes complete with a one-year guarantee and for additional peace of mind they will give you the option of a Mechanical Guarantee for a major breakdown if you pay a little more. 

Q. What happens if I live in Alicante and the car I like is in Madrid?

A.The GAP insurance company in Spain will arrange the delivery of the vehicle to your home. If you prefer to see the car in person, prior to acceptance of the vehicle, you will bear the relevant costs of viewing the vehicle. 

Q. What if they don’t find a vehicle I like or am prepared to accept?

A.The Insurance Company will pay you out 120% of the value of your vehicle in cash to help you select any vehicle of your choice or use the money as you see fit.

Q. What if I have finance outstanding on my damaged car?

A.  This GAP insurance product is for vehicles over 7 years old and therefore is unlikely to still have any finance associated with it. 

Market value of your car in Spain. 

The market value of your car (the price you would have to pay to buy the same vehicle on the open market), is usually a lot higher than what your insurance company is likely to offer you if you make a claim for the total loss of your car. So you don’t actually get replacement value. Second hand cars in Spain do hold their value, which does make it more difficult to find a suitable, value for value replacement.

In Spain, insurance companies will often make an offer to you for the total loss or write-off of your vehicle if it is classified as uneconomical to repair.  You can often refuse the first offer and see if they will increase the offer. 

Some will offer a few hundred Euros more just to settle the claim and get it off their books. However, this is not likely to be anywhere near the replacement value and you will more than likely have to contribute more money to buy a similar car, in age, mileage and condition. 

You can also opt to accept an offer from the insurance company and keep the damaged vehicle. They will likely reduce the offer slightly if you do decide to keep your old car, as you might be satisfied with doing some DIY and repairing it yourself. You will still get the value equivalent of 120% offered by the GAP insurance policy in Spain.


Copyright Plegasus Europe SL. All rights reserved. Updated February 2021