Agreed Value Gap Insurance

This article has been designed to assist your understanding of Agreed Value Gap Insurance for your Motorbike.

Where as Return to Invoice Gap Insurance will protect the original invoice price you paid for your motorbike and  Vehicle Replacement will protect the possible replacement costs for a new motorbike, Agreed Value will essentially protect the value which was agreed when taking out your Gap Insurance policy.

Agreed Value Gap Insurance can only apply, if a motorbike

  • is more than 180 days old
  • has been bought privately, for example at an auction or a non VAT registered dealership
  • has come to the end of an existing Gap Insurance policy.

Agreed Value Gap Insurance in the most simplest terms, protects or freezes the agreed value of your vehicle.

The agreed value is based on the market value of your motorbike at the time of taking out your Gap Insurance policy. The Gap Insurer will use the Glass’s Guide Dealer Retail, which is a vehicle specialist website.

Please see the following illustration which uses Loraine and her Harley Davidson.

Loraine bought her 5 year old  Harley Davidson from her sister in 2008. Loraine took out Agreed Value Gap Insurance who gave her an agreed value of £10,000. However three years down the line, in 2013, Loraine’s motorbike was stolen. Loraine went through the usual comprehensive insurance procedure which informed her that they will pay her a settlement sum of £5,000. This was based on the market value of the Harley Davidson at the time it was stolen.

Loraine now has a £5,000 shortfall. In other words, Loraine is now down £5,000. However as Loraine is protected by Gap Insurance, she will be paid the outstanding £5,000 to bring her back to the original agreed £10,000 sum.

Loraine’s Gap insurer provider will also pay her £250 towards her comprehensive insurers excess payment.

Please note that the Gap Insurer provider will not reimburse Loraine’s road tax as this can be claimed back from the DVLA.

Why don’t you Google ‘Glass’s Guide Dealer Retailer’ and check the market value of your motorbike!

For more information about Motorbike Gap Insurance, click the following link.

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