The most loved Fiat models are praised for their compact size and agility – they’re the perfect city car. The attractive Fiat 500 is still the brand’s most popular model. Small but zippy this car is ideal for drivers new to the road – the average age of a Fiat driver is 18-24. Despite the low risks of owning a Fiat, what happens if you do get into an accident? You’ll need to be able to afford a replacement car and that could severely impact your finances.
GAP insurance helps Fiat drivers afford a replacement car after a total loss. There are four types of GAP insurance available depending on how you paid for your car. Have peace of mind that you can afford a replacement after a total loss.
Although popular, Fiats are luckily not key targets for theft – 1.8 are stolen per 100,000 (Honest John). However, young drivers can’t be too careful. In fact, 1 in 5 have written off their car in the past five years and the average total loss shortfall for a first car* is £1,322 (YouGov, 2022).
Guaranteed Asset Protection (GAP) insurance is an affordable coverage type which helps to cover this shortfall if the unexpected happens and you need to find a replacement vehicle. Moreover, 20% of Fiat owners who have written off their car have remaining finance to pay (Sparta Group). GAP cover insures your remaining finance and never leaves you in negative equity – when you owe more than the current market value.
If you have comprehensive car insurance, you’ll receive a settlement based on the current market value of your Fiat. However, this doesn’t cover the full amount you paid for your car, any outstanding finance or car lease hire payments.
Drivers continually lose money to depreciation. Car finance also increases your risk. If you still owe a considerable amount on finance after writing your car off, you’ll have payments to make even while you no longer own the car.
Regardless of how you paid for your car, only 17% could afford a like-for-like replacement with their insurance settlement after a total loss.
Fortunately, Fiats are not in a high-risk category for thefts or write-offs but anyone can be at risk on the road. GAP protection tops up your market value settlement to help you afford a replacement.
There are several types of GAP cover. Back to Invoice insurance covers the difference between the car insurance settlement and the vehicle purchase price (or the outstanding finance balance on your finance agreement if this is higher). Vehicle replacement insurance covers up to the (like-for-like) replacement cost even if this is higher than you originally paid for the car. Contract Hire GAP insurance covers your outstanding rental payments, up to £3000 towards your next vehicle and the discrepancy in your insurance settlement.
Finally, Agreed Value GAP insurance covers vehicle depreciation only. Any loss in value from the date your cover started is covered by this type of GAP cover.
Car finance is an increasingly popular way to upgrade your motor. However, this payment method can leave you with a considerable shortfall if you write off your vehicle. You’ll receive the market value settlement from your motor insurer but this may not leave you enough to put down a deposit on your next car. Or worse, you risk owing more than the market value on finance, which leaves you paying for a car you no longer own.
GAP insurance tops up your market value settlement to cover your remaining finance – even if you owe more than the original purchase price of your vehicle (BTI) or replacement cost (VR). With GAP cover you should be able to pay off your remaining finance and put down a deposit for your next car.
As we mentioned, there are four types of cover for Fiat owners. Back to Invoice GAP insurance (most popular), Vehicle Replacement, Contract Hire GAP and Agreed Value GAP insurance. We summarise and compare the features and what it covers.
|
Back to Invoice Plus |
Covers vehicles:
|
Features
|
|
Vehicle Replacement Plus |
Covers vehicles:
|
Features
|
|
Contract Hire Plus |
Covers vehicles:
|
Features
|
Agreed Value |
Covers vehicles:
|
Features
|
Here, we explore GAP insurance quotes based on a new Fiat model, bought in cash, covered by Back to Invoice Plus. If you choose to pay in monthly instalments, your total cost will look slightly different.
|
Model |
Price (new) |
1-year |
2-year |
3-year |
4-year |
|
Fiat 500 |
£12,000 |
£122.18 |
£101.92 |
£138.33 |
£207.70 |
|
Fiat Panda |
£15,000 |
£122.18 |
£101.92 |
£138.33 |
£207.70 |
|
Fiat Tipo |
£27,700 |
£146.61 |
£189.38 |
£228.07 |
£293.23 |
Get a Fiat GAP insurance quote
The average shortfall after a total loss is £1,322 (YouGov, 2022)for a car worth around £5,000 and for a more valuable car (£28,000), the average shortfall is £5,596 (ALA, 2022). With the cost of a Fiat GAP insurance policy being around £100-200, you could save thousands in the event of a write-off.
One in five drivers write off their vehicle so total loss insurance is a good idea to ensure you can afford a replacement after a total loss. Here are some of the reasons to choose the number one GAP insurance company.
We have a 99% payout rate
We have over 17,000 five-star reviews on Trustpilot
We’re rated five stars on Defaqto
Our policies are affordable and accessible
Policies are available for almost all cars
First-rate, UK-based customer service
Get your GAP insurance quote
“Great peace of mind having Gap insurance should anything happen to my car”
– Date of experience: 22 July 2024
“ALA’s products have given me peace of mind for my vehicle purchase and the knowledge I am in good hands should the worst happen and I need to make a claim.”
– Date of experience: 29 July 2024
“Couldn’t recommend any better customer service, was given a competitive price for a well known GAP insurance company. Would recommend.”
– Date of experience: 25 July 2024
Read over 17,000 five-star reviews
You can buy total loss cover before or after collecting your vehicle. If you’ve already purchased your Fiat, you need to consider the timeframe requirements for GAP insurance. Back to Invoice allows 180 days, Vehicle Replacement allows 90 days and Contract Hire allows 365 days from the day you collected your car. Agreed Value has no limit. Read about GAP insurance policy requirements
Your Fiat GAP insurance remains valid while you have comprehensive insurance in place. If your car insurance pays out, so will we.
Yes, a stolen vehicle is considered a total loss which is covered under any GAP insurance policy.
Comprehensive car insurance covers you for the cost of vehicle repairs and also pays a market value settlement when your car is stolen or damaged beyond repair. GAP insurance tops up your total loss settlement to help you afford a replacement and assists with other related costs such as outstanding finance and insurance excess.
GAP cover is available for cars bought outright and for cars paid for using a PCP loan, Hire Purchase or personal loan. Buying a car is a huge investment regardless of how you paid for it. GAP insurance helps make sure you can afford your next car after a total loss whether you paid in cash or on finance.
Car Excess Insurance
Short Term Motor Insurance
Scratch and Dent Insurance
Tyre & Alloy Wheel Insurance
Cycle Insurance
