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The UK's original online GAP insurance provider

Providing GAP insurance online since early 2004. Cover available for new and used cars. Get a quote today.

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Our customers saved

On average
£243

At most
£1,647

Largest claim paid

£49,475

Average claim paid

£6,649

What is GAP insurance?

GAP insurance is an entirely optional form of insurance and some people will have a greater need for it than others.

Without GAP insurance in force, if your car is written off, you'd only have your motor insurer's valuation of the vehicle coming your way. If you have finance outstanding on your written-off vehicle, your motor insurer's valuation of the vehicle may not be sufficient to clear the outstanding balance, in which case, you'd have to use your own funds to both clear the remaining finance on the written off vehicle and fund a replacement vehicle.

Of course if you had no finance outstanding at the time of write-off, then in theory you could use your motor insurer's valuation of the vehicle to buy a vehicle of a similar age, condition and mileage as your vehicle at the time it was written off but, if you wanted anything newer or better etc, you'd have to use some of your own funds to cover the difference.

There are different types of GAP cover but, Invoice GAP insurance for example, would aim to top-up your motor insurer's valuation of the vehicle at the time of claim to the original invoice price that you paid for your now written-off vehicle when you first bought it. If you have finance outstanding you would use this original invoice amount to clear some or all of that outstanding finance and any remaining funds would be yours to use against the cost of your next car. Of course, if you had no finance outstanding then you'd have this original invoice amount entirely at your disposal to buy another car with.

Do you need it?

Ultimately, if you have sufficient funds at your disposal to comfortably afford to stand the combined cost of clearing any finance outstanding (where applicable) and replacing your vehicle in the event it's written off, you probably don't need GAP insurance. However if you could not comfortably afford to replace your vehicle or, you'd prefer that your own savings were not 'hit' substantially by the cost of replacing your vehicle if it was written off, therein lies the need for GAP insurance.

Add a little TLCc to your GAP insurance:

Total Loss Courtesy car

Total Loss Courtesy Car

If your vehicle is damaged in an accident, your motor insurance policy will normally provide you with a courtesy/hire car whilst the damage to your vehicle is being assessed.

If they determine that your vehicle is repairable, you would normally have the use of that courtesy car for the duration of the repairs.

However...

If they decide that the damage to your vehicle is beyond repair and subsequently declare it a Total Loss (they write it off), you would then not normally be entitled to their courtesy car any longer (unless you've paid them an additional premium for such entitlement) and, it would be withdrawn: leaving you without the use of a vehicle.

Depending on how much longer they take to settle your claim, you might be without a vehicle for a number of days - or even weeks!

Building in Total Loss Courtesy Car cover (TLCc) to your GAP insurance policy with us, means that in the event your car is declared a Total Loss, we will provide you with a courtesy car for you to use for up to 28-days.

TLCc Cover Features:

The car provided:

  • Will be of a similar sized engine to Your vehicle that was deemed a Total Loss (limited to a maximum of a 2.0 litre manual car or equivalent)
  • Will be insured. Please note that an excess (normally £250) will apply to accidents/claims occuring during your use of the courtesy car. Exact terms will confirmed prior to you accepting delivery of it.
  • Will be able to be delivered to and collected from your home or place of work.

For more information please review the Ts & Cs of our GAP insurance policies here, or generate a quote.

If your car's written off, we'll keep you moving!

Relaxing in a car, feet out of the window

What are the different types of GAP insurance?

There are a number of different types of GAP insurance. Taking the time to understand the difference between them and which type is better for your needs is important.

GAP insurance policies don't come much better than this.

Replacement GAP insurance is the highest level of GAP insurance cover available today. It's a combination of the three main types of GAP insurance: Finance GAP, Invoice GAP and Replacement GAP insurance - which means it provides the best of all cover levels.

In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft, or flood, Replacement GAP insurance aims to pay the difference between your motor insurer's valuation of the vehicle and THE HIGHER OF either:

  • The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
  • The ORIGINAL INVOICE PRICE that you paid for your vehicle first time around, OR
  • The cost of REPLACING YOUR VEHICLE with a brand new version of the same (or nearest equivalent) as your original vehicle - even if the replacement vehicle cost is MORE than you bought the vehicle for first time around.

For most people who go on to make a claim, having their motor insurer's valuation of the vehicle topped up to the cost of replacing their vehicle with a brand new equivalent at the time of claim by way of a Replacement GAP insurance claim pay-out, would leave them in the position of being able to both clear any outstanding finance and have money left over - more money than they would have had left over than with any other type of GAP insurance - to put towards the cost of their next car.

If you need assistance determining whether this type of cover is suitable for your needs, please contact us.

Replacement GAP claim example

Invoice GAP insurance is the most commonly purchased type of GAP insurance in the UK today (primarily because it's usually the highest level of cover offered by Motor Dealers). It's a combination of both Finance GAP and Invoice GAP insurance, thereby providing the best of both cover types.

In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft or flood, Invoice GAP insurance aims to pay the difference between your motor insurer's valuation of the vehicle and THE GREATER OF either:

  • The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
  • The ORIGINAL INVOICE PRICE that you paid for your vehicle when you first bought it.

For most people who go on to make a claim, having their motor insurer's valuation of the vehicle topped up to the original invoice price of the vehicle by way of an Invoice GAP insurance pay-out, would leave them in the position of being able to both clear any outstanding finance and have money left over to put towards the cost of their next car.

If you need assistance determining whether this type of cover is suitable for your needs, please contact us.

Invoice GAP claim example

If your vehicle is the subject of a Contract Hire / Lease agreement and is declared a Total Loss (written off) through accident, fire, theft or flood your Motor Insurer will pay out only what they think your vehicle is worth at the time of claim.

In the meantime your finance company will have calculated their settlement figure which, would normally be a combination of some or all of the following:

  • The amount that the finance company think your vehicle was worth at the time of loss
  • The sum of anything up to 100% of the as yet unpaid rentals under your Contract Hire agreement at the time of loss.
  • Administration & or penalty fees for wrapping up the agreement early.

Your motor insurance pay-out might well fall short of this figure. If it does your finance company might hold you liable for anything up to 100% of the shortfall and this where Contract Hire GAP insurance steps in... to pay the difference between your motor insurer's valuation of the vehicle and the amount required to settle the remaining balance of your Contract Hire agreement.

In addition, our policies cover up to £3,000 of the initial rental you paid as part of your Contract Hire agreement, meaning that you'd be reimbursed some or all of your initial rental for you to use against the cost of setting up a new Contract Hire agreement on a replacement vehicle.

If you need assistance determining whether this type of cover is suitable for your needs, please contact us.

Contract Hire GAP claim example

How Top-Up GAP insurance works

Top-Up GAP insurance is a 1-year long annually renewable GAP insurance policy available for a vehicle up to 10-years old, worth up to £80,000.

It could be a vehicle you bought cash outright, via finance or a vehicle you leased. It could be a vehicle you bought from a motor dealer or a private seller.

It could be a vehicle for which your existing GAP insurance policy is about to expire or, a vehicle that you were expecting to dispose of at the end of your original finance agreement but, you're now keeping for a longer period and you need GAP insurance for that extended period.

If your vehicle is written off, Top-Up GAP insurance aims to top-up your motor insurance pay-out by up to 25%, It will even cover up to £750 of any excess payable to your motor insurance company as part of the Total Loss (write off) claim too!