RTI Gap Insurance

Roman Danaev

25 May 2023

Meaning and Definition

RTI Gap insurance, or Return to Invoice Gap insurance, is a type of insurance coverage designed to protect car owners in the event of a total loss or theft of their vehicle. It covers the difference between the insurance payout received from the comprehensive motor insurance policy and the original purchase price or outstanding finance amount of the vehicle, whichever is higher.

Why it is important to know

RTI Gap insurance provides added financial protection to car owners, particularly in situations where the insurance payout may not fully cover the outstanding finance amount or the original purchase price of the vehicle. It helps bridge the gap and ensures that the car owner is not left with a significant financial shortfall in the event of a total loss or theft. RTI Gap insurance can be especially beneficial for car owners who have financed their vehicles and want to protect their investment.

Example in car finance

Suppose a car owner purchased a vehicle for £20,000 and financed it through a car finance agreement. A few months later, the car is involved in an accident and is deemed a total loss by the comprehensive motor insurance provider. The insurance company assesses the vehicle's current market value and offers a payout of £16,000. However, the car owner still owes £18,000 on their car finance agreement. In this scenario, RTI Gap insurance would cover the £2,000 difference between the insurance payout and the outstanding finance amount, helping the car owner settle their finance agreement without incurring a significant financial burden.

Car finance calculator

Must be between £3,000 to £50,000
Your monthly payment
Total charge of credit£0
Total amount payable£0
Apply now for your personalised, no-obligation quote