The new 76 registration arrives on 1 September 2026 and, for many drivers, that means collecting a brand-new car over the next few weeks.
It also means sitting through the final paperwork. Alongside finance, servicing, paint protection and other add-ons, the motor dealer may offer you GAP insurance.
The policy might provide worthwhile protection. But it is optional, and the showroom is not the only place you can buy it.
What type of GAP insurance will the dealer offer?
Most UK motor dealers that sell GAP insurance offer some form of Invoice GAP. This will usually combine Finance GAP and Return to Invoice protection.
If your vehicle is written off, combined Finance & Invoice GAP will normally aim to top up the motor insurer’s Total Loss valuation to the higher of the original vehicle invoice price or the finance agreement settlement figure at the time of claim.
That can protect considerably more than standalone Finance GAP. The important thing is to check the claim calculation rather than relying on the policy name.
You have time to compare it
The FCA’s deferred opt-in rules are designed to prevent a motor dealer from concluding the GAP insurance sale until at least two clear days after providing the required information.
The dealer must also explain that GAP insurance is optional and may be available from other providers.
That comparison does not have to delay the purchase or collection of the car. Ask for the dealer’s quotation and policy documents, then use the time to compare them properly.
What have customers actually been quoted?
Between 1 August 2025 and 31 July 2026, 280 customers who went on to buy a policy from GAPinsurance.co.uk told us what their motor dealer had quoted them.
The average dealer quotation was £416.90. The average GAPinsurance.co.uk premium was £250.47, a difference of £166.43.
Our premium was lower in 260 of the 280 comparisons. It was higher in 19 cases and effectively the same in one, which is why price should never be the only part of the decision.
The policies being compared were not necessarily identical. Check the settlement calculation, claim limit, duration, additional benefits and restrictions as well as the premium.
Be careful with discounted or “free” GAP insurance
If the dealer suddenly discounts the GAP insurance or offers it free, look carefully at the vehicle invoice.
We have seen cases where the GAP premium remained on the invoice at its full price while the dealer reduced the vehicle price by the same amount. The overall total did not change, so the offer appeared free.
There is a problem, though. Invoice GAP normally works back to the original discounted vehicle invoice price. If £417 has been moved from the vehicle price to the GAP premium, the original invoice price protected by the policy may also be £417 lower.
Ask the dealer to show the vehicle price and GAP insurance premium separately. Make sure the paperwork reflects the deal you were offered.
Five questions to ask before you agree
- What figure will the GAP policy use to calculate an eligible claim?
- What is the total premium, including Insurance Premium Tax?
- Does the same protection apply throughout every year of the policy?
- Will a claim be paid in cash, or are there restrictions on sourcing a replacement vehicle?
- Has the vehicle invoice price been changed to fund a discounted or free GAP policy?
Our new Dealer GAP Insurance Guide explains the FCA rules, Insurance Premium Tax, real customer price data and the policy terms worth comparing:
GAPinsurance.co.uk/guides/dealer-gap-insurance.asp
Drive Protected with GAPinsurance.co.uk.