A Guide to GAP Insurance
GAP insurance protects you financially if your vehicle is written off or stolen (also known as a TOTAL LOSS).
It’s not just about covering a financial shortfall. We have spent 20 years improving our products. Now they come with a host of extra benefits.
Remember! GAP insurance does not replace your normal Motor Insurance. You still need motor insurance. GAP insurance is an extra layer of protection to stop you from getting a nasty financial shock.
The right GAP insurance depends on how you paid for your vehicle.
Don’t worry about choosing. Our online quote wizard will ask you a few simple questions. Then, it will show you the products available.
Read about our products below:
Suitable for: People who buy their vehicle with cash, a bank loan, HP or PCP finance and want protection for more than 12 months.
Note: This product does not cover leased or contract hire vehicles.
What does it do: If your vehicle is declared a write off, this product pays the difference between the insurance payout and what you paid for the vehicle or the remaining finance balance, whichever is higher, up to a set limit. Here’s a summary of what’s included in your policy:
- Depreciation Protection: This cover pays the difference between the motor insurer’s payout and the original purchase price (excludes certain items).
- Shortfall Protection: If you owe more on your finance agreement than the original purchase price, it covers the higher early settlement amount instead.
- Total Loss Excess Cover: If you paid an excess to your insurer after a write-off, it reimburses up to £500.
- Temporary Mobility: You will get a hire car for up to 35 days after a write-off.
- Additional Excess Cover: We pay you back up to £500 towards your excess for normal, everyday motor insurance claims that aren't related to a vehicle write off or glass/windscreen repair. So if your vehicle is damaged and you make a claim under your motor insurance policy to repair it and your motor insurer charges you £400 excess, your GAP policy will pay you £400. You can claim up to £500 per year for the duration of your GAP policy.
- Choice of cover period: You can choose how long you want the cover to last.
Suitable for: People of businesses who are leasing a vehicle.
What does it do: If your vehicle is written off or stolen, this policy protects you from being left with a potentially large, unexpected bill from your leasing company. Here’s a summary of what’s included in your policy:
- Shortfall Protection Car insurers only pay the market value of the car on the day of the loss. This policy covers the financial gap between that insurance payout and the total amount you still owe to clear your contract hire or lease agreement.
- Initial Deposit Cover: We will reminburse your initial rental amount (deposit) you paid for your vehicle, up to a maximum of £2,000.
- Total Loss Excess Cover: If you paid an excess to your insurer after a write-off, it reimburses up to £500.
- Temporary Mobility: You will get a hire car for up to 35 days after a write-off.
- Additional Excess Cover: We pay you back up to £500 towards your excess for normal, everyday motor insurance claims that aren't related to a vehicle write off or glass/windscreen repair. So if your vehicle is damaged and you make a claim under your motor insurance policy to repair it and your motor insurer charges you £400 excess, your GAP policy will pay you £400. You can claim up to £500 per year for the duration of your GAP policy.
- Choice of cover period: You can choose how long you want the cover to last.
Suitable for:
- People who bought their vehicle privately (not from a dealer), or have owned their vehicle for more than 3 months and didn’t buy GAP insurance.
- Want an annual policy they can review and renew until their car is 10 years old.
If your vehicle is written off, this product increases the motor insurance payout by 25%, up to £10,000. It can be renewed every year and transferred if you change your car.
What does it do:
- 25% valuation boost: It increases the motor insurer total loss payout by 25% to help you buy a new car
- Total Loss Excess Cover: If you paid an excess to your insurer after a write-off, it reimburses up to £500.
- Temporary Mobility: You will get a hire car for up to 35 days after a write-off.
Click here for a real claim example
If your car is brand new and you are the first person to register it, your car insurance might include 'new for old' cover for the first year. This means they will try to replace your vehicle with a brand new one instead of giving you cash.
You might wonder if you still need GAP insurance during this first year. The decision is up to you, but you should consider the other benefits on your GAP policy. You still get a hire car and help with your insurance excess costs. You can also transfer your GAP policy to a new vehicle for free, provided the vehicle is of similar value. Before buying GAP insurance for a new car, always check your current motor insurance policy to see what it covers.
Warning: We have seen situations where a car is written off in the first year, but the customer is surprised because the insurance company does not replace it with a new car. Here are some common reasons:
- You are not the first owner: Many insurance companies only offer 'new for old' cover if you are the first registered keeper. If your car is leased, the leasing company is the registered keeper. If you bought your vehicle from a dealer, the dealer might have registered it first. So, even if the car is new to you, you might not be the first registered keeper. Check this small print with your motor insurer.
- Finance agreements: Finance companies technically own the car. They often refuse to accept a replacement vehicle and demand a cash payout instead. This means you might only get a cash payout from the insurer, which could be less than what you paid for the car and be in a situation where you need GAP insurance.
- No stock: If the insurer cannot find an exact match for your vehicle, they will offer a cash amount instead. This amount might be less than the original price of your car.
- Too many miles: Some insurers cancel 'new for old' cover if you drive over a certain number of miles.
Always check your main vehicle insurance policy carefully. If you are unsure, contact us.
We are experts: We have focused on GAP insurance since 2001. We have been the official GAP insurance providers for the British Insurance Brokers Association since 2012.
We save you money: Some Car dealers sell GAP insurance at high prices. Because we sell online, our costs are lower, and we pass those savings to you.
We are safe: Our policies are backed by top ‘A’ rated UK-based insurers. We are fully regulated by the Financial Conduct Authority.
The right GAP product depends on how you bought your vehicle and when. Some products must be purchased soon after buying your vehicle. Always compare options to find the best coverage for your situation.
