Will your Gap Insurance Policy cover you if your car is stolen?
This is a question that we are often asked and an important aspect to think about before you buy any form of Gap Insurance?
Unfortunately, it is not an easy question to answer.
The reason is that yes, your gap insurance policy will and no it won't as it will depend on the circumstances!
The problem is that just like your own insurance company if your car is stolen as a direct result of your negligence then no, unfortunately, your gap insurance policy will not be able to cover you. Don't forget that in order for your gap insurance policy to settle your own insurance company have to agree to also.
For example, if you left your keys in the ignition of your new car, with the door open and decided to take a walk to return two hours later and find your car stolen. your own insurance company would class that as negligent and therefore would not be able to pay. Another example we have heard of unfortunately unlike the slightly exasperated illustration above is actually a true story.
An Elderly gentleman was putting some new diesel in his car. (His car had the type of petrol cap release system which is operated from inside the car.) He finished fueling and then joined the queue to pay. He had left the keys in the ignition and a few minutes later an opportunist thief drove off in his new pride and joy.
This scenario genuinely does happen, not often but it happens.
If however someone broke into your house, or took your keys without your permission and then subsequently stole your car, your own insurance company would take the view that you had taken all due care and attention and settle and therefore we would follow suit.
This term is sometimes called by insurance companies "give indemnity" and if you read your policy you will see that it mentions that providing your own insurance company give you indemnity for the claim then we will too.
Simply put this means that whatever the circumstances of your car being written off. No matter if it was stolen with the keys or without, no matter if it was your fault or not, providing that your own motor insurance company are happy to settle then your gap insurance policy will too.