Why do you need GAP Insurance

GAP covers the difference between purchase price and market value of the vehicle in case of total loss or theft. Insurance guarantees up to 100% recoverability of the purchase price of the vehicle for up to 5 years.

Did you know that in case of total damage Casco insurance is not based on the purchase price but on the current value of the car? Once you have GAP Insurance, We will pay you the amount by which the net invoice price exceeds the motor insurance settlement.

What is GAP Insurance

GAP Insurance (Guaranteed Asset Protection) is an insurance that you can purchase in addition to your Casco insurance for your vehicle. The purpose of GAP Insurance is to protect the investment you have made in your vehicle purchase. We cover financial losses caused by total damage to your vehicle, including theft, fire and natural disasters. The GAP Insurance benefit covers the difference between the Casco insurance benefit in the event of a total motor vehicle damage (the value of the vehicle at the time before the insured event) and the value of the vehicle indicated on the purchase invoice (which is the insurance amount for the GAP insurance). GAP insurance is available for new vehicles.

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What is covered by GAP Insurance

The insurance covers total loss of the vehicle due to:

  • Theft
  • Car accident
  • Fire
  • Natural disaster

Advantages of GAP Insurance (Guaranteed Asset Protection)

  • The maximum limit of cover is as much as 196.000 RON
  • Up to 5 years of guarantee of getting sufficient resources to buy a new vehicle.
  • You choose the policy period (2-5 years)

Frequently asked question


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What is GAP Insurance?

GAP insurance (“Guaranteed Asset Protection insurance”) is an insurance that you can purchase as a supplementary cover to tour Casco  insurance. The purpose of this insurance is to protect the investment you made when purchasing  your vehicle. GAP protects  you  from a financial loss caused as a result of total damage (including theft) of the vehicle. In case of a total loss, GAP covers the difference between the indemnity paid by the Casco insurer  (which covers the value of vehicle just before the insured event) and the purchase price of the vehicle, which is the insured sum in the GAP policy.

How does GAP insurance work?

The new vehicle loses its market value from the moment it was purchased. The market value drops most significantly  in the first years after its purchase and its value may fall to half of the original purchase price during the 4-5 years following the purchase. By concluding the GAP insurance, in the event of an insured event (total loss of the vehicle), you can still have the same amount of money which you have invested in purchasing your vehicle. You can conclude GAP up to 180 days of the purchase date of your vehicle.

Who is GAP insurance suitable for?

GAP insurance is appropriate for any vehicle owner who, after "total damage", does not want to purchase a comparable vehicle to that which he had before the total damage occurred, but would like to purchase a new one. The maximum entry age of the vehicle is 6 years from the date of the first registration and it has not been more than 6 months since the invoice or sale contract was issued.

What are the GAP risks?

GAP follows the Casco covers when a total loss occurs. In case of total loss GAP covers car accident, theft, fire, natural disasters. As soon as the Casco insurer has paid your total loss claim, the GAP insurer reviews the claim and makes a settlement. We recommend that you choose a Casco  insurance that covers the greatest possible range of risks.

When we do not pay GAP insurance?

All the exclusions are mentioned in the Contract, but some of the exclusions are listed here as well: altering mileage of the car; insured driving following consumption of alcohol; using the vehicle for a purpose other than its  usual  purpose.

When does the GAP insurance expire?

GAP insurance expires upon the expiry of the period for which it was arranged. However, it may also cease earlier in the event of an insured event - total damage claim to the Casco  insurer, at the moment of change of ownership of the vehicle, or other termination of the contract under the insurance legislation.

What happens if I sell the vehicle?

This is the so-called "extinction of the subject of insurance", where, after documenting the change of owner, the original owner (our insured) is entitled to unused premiums. After documenting the change of owner, we will then return the proportional part of the paid premiums from the moment of transfer (in accordance with the data entered on the technical license). For more information, please contact Colonnade (+4021 300 96 21 and e-mail: office@colonnade.ro).

Am I entitled to unused premiums even in the event of an insured event?

No. In the event of an insured event (total loss), the entire premium is consumed by the end of the insurance period.

What happens if I change an insurance company?

The advantage of GAP is that it is not tied to a particular Casco insurance product or Casco insurance company. During the insurance period, you can change the Casco  insurance as  convenient for you.

What is the maximum claim amount from GAP insurance?

The indemnity limit is 196.000 RON. This is the maximum amount we would pay from our insurance for one insured event.

What is the maximum amount of deductible insurance?

The maximum deductible is 19.600 RON.

What is considered a new vehicle?

A vehicle of category M1 (passenger car) or N1 (lorry up to a total weight of 3 500 kg) whose first registration date has been within 6 months (180 days). The purchase price of the vehicle is not more than 490.000 RON.

What is considered a used vehicle?

If more than 6 months (181 days) have elapsed since the date of first registration, the vehicle it’s considered a used one.

How is the valuation of a used vehicle determined?

On entering the insurance as well as in the case of an insured event (to ensure objectivity), we determine the price of the Vehicle by EUROTAX methodology.

What do I need to document to conclude an insurance contract?

  • Invoice or sales contract (copy, scan)
  • certificate of registration, technical license (copy, scan)
  • actual mileage as of the valuation date of the vehicle used
  • detailed list (specification) of optional equipment
  • Colonnade evaluation of the vehicle

Which cannot be insured?

  • Vehicles that are used for the contractual transport of persons for a fee (taxi, car rental, hotel and similar transportation, etc.)
  • Priority vehicles equipped with blue or red warning lights (ambulances, firefighters, police, etc.)
  • Vehicles used for contractual or other rental to third parties, except when insured by the lessee of the Vehicle and registered as a holder in its Registration Certificate
  • Vehicles on which any identifier (VIN, etc.) has been changed or removed, or on which the mileage of the Vehicle has been manipulated or the date of first entry into service of the Vehicle
  • Vehicles which have not been type-approved for operation on roads in the Bulgaria or cannot be secured to it
  • Vehicles that were individually imported into the Bulgaria (unless they had been granted an exemption to enter insurance from Colonnade)