[JonF1982]

Ok so lets say you paid £20,000 for a car 3 years ago. At the time you got a really good discount of £3,000. Today, the car retails for £24,000 as we've had a few years of inflation.

You still owe £10,000. The Car's market value is £8,000. Your car gets stolen, you have no car and still owe 10k in finance.

Standard gap insurance pays you the difference between your insurance settlement (£8,000) and you finance outstanding (£10,000). So £2,000. That gives you £10,000. You to go into the dealer and put down £10k, and finance £14k as that special offer you got 3 years ago isn't available.

Return to invoice pays you the difference between your insurance settlement (£8,000) and what you paid for the car (£20,000). So you walk into the dealership with £20,000, but still need to find £4,000 to buy a new car.

Replacement Car just gives you a new car, regardless of the fact it now costs £4,000 more than when you bought it.

Therefore you have got three levels of Gap insurance, Standard, RTI and Replacement Car, standard being the basic one, replacement car being the best.

Hope that helps.