What is the maximum value clause with Gap Insurance?

When you are considering and comparing Gap Insurance cover, you may come across the term 'maximum value clause' but what is it? The term basically forms a limit to the maximum purchase price that can be covered when you buy the Gap cover. This figure is normally determined by a recognised industry valuation system, such as Glass' Guide, Parkers Guide or CAP.

How would it work on a Gap Insurance policy?

Well, for example, your policy terms may state that the maximum value that the policy can cover, may be the lower amount of either the invoice price paid or the Glass Guide Retail Value for the vehicle, at the time of purchase. This basically means that if you paid a price higher than the price suggested by Glass Guide, then the insurer would not pay to the invoice price.

This term was quite a common place amongst motor dealer policies, and some online providers. However, in recent times, it has been removed from cover terms to make the protection easier to understand.

Do GapInsurance123 policies employ a maximum value clause? 

Finance and Contract Hire Gap - No Maximum Value Clause

Combined Return to Invoice Gap - No Maximum Value Clause

Combined Vehicle Replacement Gap - No Maximum Value Clause


Agreed Value Gap - Yes, set at 105% of the Glass' Guide Retail Value (which is 5% more than many other similar types of cover)


So this means with a GapInsurance123 Combined Return to Invoice policy you will not be limited to any guide price if the vehicle purchase price exceeds it (*subject to other policy terms). So if you buy a new vehicle from a dealer, and you have paid slightly over the odds as it is a 'one off' you have no fears of being caught with a maximum value clause on your invoice price.

Good news all round!

Other resources:

Combined Return to Invoice Cover

Combined Vehicle Replacement Insurance

Finance and Contract Hire Gap Insurance

Agreed Value Gap Insurance