Motorcycle Invoice Gap Insurance

What is GAP insurance?

If you’ve landed on this page, it’s probably because you have at least some idea about what GAP insurance is and know how important it is. If you have no idea what GAP insurance is… don’t worry! We have all the information you need right here!

Guaranteed Asset Protection Insurance (GAP) is designed to protect you from a hit in the pocket if your motorbike is declared a 'total loss' or write off by your bike insurer.

If your motorbike is deemed a total loss (typically because of an accident or theft), insurers will only pay you market value for your motorbike at the time of the incident; therefore, because your motorbike will depreciate in value over time, there is likely to be a “gap” in the financial settlement between what is paid out by your bike insurer and the amount that you purchased your motorbike for.

In the case of bikes that are purchased with finance, shortfalls are potentially made bigger, in turn meaning that you face a double hit by having an uninsured liability and no motorbike to enjoy or use for essential journeys.

Important: BeMoto GAP Insurance is for motorbikes only, i.e. not for scooters, quads or trikes.

Read on for more information, example claims and policy premiums; plus FAQs to help make up your mind.

BeMoto Return to Invoice (RTI) GAP

If you have purchased a brand new bike (or a used bike that is less than 10 years) within the last 185 days from a VAT Registered Garage or Dealership, then RTI GAP pays the difference between your bike insurer's total loss settlement and the purchase price you paid for your bike - including any factory fitted options and up to £1,500 of dealer fitted modifications if paid for at the same time.

BeMoto policies are designed by bikers for bikers, so... unlike many policies:

• Aftermarket modifications do NOT invalidate your cover, although the insurer won't replace them (they'll only pay up to the £1,500 for factory options or modifications that were paid for and fitted by the dealer at the time).
• You don't need to guess the depreciation amount or "gap" to insure. Our RTI GAP policy is unlimited up to the value of the bike you paid / level you choose, i.e. if your bike was £20k and you choose the £20k option, then it will cover the full gap up to £20k.

If you bought your bike more than 180 days ago, or from a private seller, or if it is over 10 years old / 100k miles already, then our Total Loss Protect GAP Insurance could be the right product for you.

EXAMPLE RTI GAP CLAIM: "Mind the GAP"

This Image illustrates the simple function of GAP Insurance. Imagine you buy a bike worth £20,000, and after 2 years and a lot of fun miles, you have an insurance claim that means the bike will be written-off. At that time, a reasonable market value for the bike might be £12,000 - which may clear your finance agreement but without GAP insurance you would be looking at a shortfall of £8,000 from what you paid for the bike:

• What about those factory options and dealer fitted modifications you lovingly added at the time?
• When will you afford the new modern equivalent bike, dripping with the latest tech, that's gone up in price?
• How about the extra shock of your insurance excess and potential early finance termination costs?

In this example, RTI GAP insurance could cover all of these by providing an extra £8,000 on top of the bike insurance pay-out.

Contract Hire & Lease

Contract Hire and Lease pays the difference between your motor insurer's settlement and any outstanding rental/lease payments you may have. This policy is for you if you hire or lease a bike and you can take an option of covering any upfront lease or rental payments up to £3,000.

In the event of your bike being declared a total loss then this policy can cover the outstanding contract hire settlement.

How much does BeMoto Return to Invoice GAP insurance cost?

Premiums are very competitive compared to other products in the market and this cover has been designed to be fit for bikers (most are just car policies for bikes).

Note: RTI GAP policies cannot be renewed or extended yearly or at the end of the policy; therefore, it makes sense to obtain a policy for as long as you plan to keep your motorbike:

* Prices correct as at August 2020

BeMoto RTI GAP Insurance Benefits

Remember, the policy covers the full gap up to your chosen bike value level. No need to try and guesstimate the potential shortfall. Plus, you can still modify your bike without invalidating cover (although the insurer won't pay for aftermarket mods carried out once it leaves the factory / dealership).

Note: For RTI GAP you must have comprehensive insurance cover in place for the entire time the policy is in place. If you have do not have comprehensive cover, check out our Total Loss Protect GAP Cover.

* If you have purchased a bike from anywhere but a VAT Registered Garage or Dealership, purchased a bike aged over 10 years or with over 100,000 miles, or the bike has been purchased more than 185 days before you purchase GAP Insurance, then this cover will not be suitable. Instead you should consider Total Loss Protect.

The information contained on this page is a brief summary of policy conditions. For a full list of all conditions please refer to the Insurance Policy Information Document (IPID) and GAP Policy Documents before purchase.

Frequently Asked Questions (FAQs)

What is Combined Return to Invoice and Finance GAP insurance?

For the first 48 months, this policy provides the difference between the settlement from your motorbike insurance or Glass’s valuation whichever is greater and the purchase price of the motorbike; or if the early settlement figure is greater on your finance agreement.

However... for months 49 to 60, it also provides the difference between the settlement from your motorbike insurance and the early settlement figure of your finance agreement. This is a time period which many insurers don’t provide cover for, but this policy does for no extra cost!

This policy is, therefore, suitable if you have bought your motorbike outright, financed the purchase or have personally leased or taken a contract hire motorbike.

Will GAP insurance cover the full value of my motorbike?

GAP insurance is designed as a “top-up”, your main motorbike insurer will pay a settlement of market value and the GAP insurance will pay the rest. So whilst it doesn’t cover the full value, it does do exactly what it’s meant to in covering the shortfall or “gap”.

Whilst you can choose the level of cover or value limit of the shortfall, your GAP policy should only be required to match the shortfall between your insurer’s settlement and either:

• The invoice price of your motorbike
• The outstanding finance balance
• The outstanding rental

How much cover do I need?

Motorbike depreciation is not an exact science because rates can be affected by the retention values of the make and model of motorbike. Other factors that affect value include; mileage, condition, and general marketability at the time of a total loss. Many GAP policies ask you to pick a cover level for the size of gap you want to insure.

However... to ensure you don't get caught out trying to calculate how much cover to purchase, this has been made simple! Just choose the correct value band for your original bike purchase cost, including dealer fitted modifications, and your GAP cover is unlimited up to that chosen amount - in other words - if your bike was £20,000 and you select £15,000-£20,000 level you are covered for any size gap up to the £20,000 you paid.

When can I buy a GAP Insurance policy?

You may obtain a policy within 180 days of purchasing your motorbike from a VAT registered dealer. The bike should be less than 10 years old at the time of purchase and have less than 100,000 miles on the clock, otherwise you will need Total Loss Protect cover instead.

Are dealer fitted accessories included in my GAP cover?

Yes, up to a maximum of £1500 provided that they have been fitted at the time of purchase or unless included in the motorbike manufacturer’s original specification (i.e. any option fitted at the factory).

Whilst this policy doesn't decline claims for aftermarket modifications you make once it leaves the factory / dealership, these costs aren't included in claims because the policy is designed to cover the original invoice price (subject to the £1,500 modifications limit above).

Is my GAP Insurance valid if I take the motorbike abroad?

Yes if Total Loss occurs within Great Britain, Northern Ireland, Isle of Man, Channel Islands, Member Countries of the European Community, and any other country for which an international motor insurance Green Card in respect of the Motorbike is effective at Date of Loss, and provided that your main motor insurer settles your claim.

What if I change my bike mid term?

If, having purchased a policy, and then subsequently change your motorbike before the policy expires, you will be provided with an unexpired monthly pro rata rebate of the original premium (subject to a £20 administration fee) which can be used in one of two ways:

1. It can be used by you as part of the premium for a new policy for your new motorbike, or
2. You can simply keep the rebate and use it as you wish.

Are Named Riders covered by my GAP policy?

All named riders on your main comprehensive motorbike insurance policy are covered; however, GAP claim settlement is always conditional on your main motorbike insurer settling your total loss claim.

Anyone riding your motorbike under their own motor insurance or on a temporary/short term motor insurance policy will NOT be covered.

If my bike is written off by an uninsured driver, will my GAP insurance pay out?

This GAP insurance is conditional on you holding a Comprehensive bike insurance policy for the duration and your claim being settled by your insurer or the third party (at fault) persons insurer. In most cases your insurer will settle your claim in the absence of a third party policy, then subsequently try to recover their losses from the Motor Insurance Bureau (MIB). As long as your insurer pays out, then this policy will also make a settlement.

My Comprehensive Insurer is offering me a 'new for old' replacement for the first 6 months, why do I still need GAP insurance in the first year?

There may be instances where your insurer reduces your settlement to market value only within this 'new for old' period. This can be for a variety of reasons, which include things like exceeding the annual mileage limits, adverse condition of the motorbike, because the motorbike has been stolen rather than being involved in an accident or if a replacement motorbike cannot be sourced within a certain number of weeks of the incident.

In addition, you only have 180 days from the start of bike ownership to purchase your GAP policy. Once your 'new for old' period passes, if you choose not to have GAP insurance in the first 6 months and 180 days pass, you will be left with just your insurance pay-out for the remaining period of ownership and could be left with a shortfall 2, 3 or 4 years down the line.

Does a Private Plate affect when I buy GAP insurance?

No. You can still purchase the GAP insurance immediately using the original registration.

Once your private plate is fitted to the motorbike please advise us of the new details and your records will be updated free of charge.

Although I own the motorbike, I am not the main user on the main motor insurance policy; in whose name do I apply for GAP?

The person named in the GAP Policy Certificate must be the registered keeper of the Motorbike in respect of Contract Hire/ Lease Finance and the authorised User of the Motorbike and (if applicable) who is named in the Finance Agreement.