GAP Insurance Cash Payouts
If your vehicle is written off, you'll have enough to organise without being told where to buy your next car. Our GAP insurance policies provide a cash settlement for a successful claim, rather than credit that must be spent with a nominated dealer.
Who receives the money?
If a finance company has an interest in your vehicle, the amount due to it is paid first where necessary. Any remaining GAP insurance payment goes directly to you.
If you bought the vehicle outright, or had already cleared the finance before the claim, the whole GAP insurance payment goes to you.
The amount payable depends on your policy type, its claim limit and the circumstances of the claim. A cash settlement describes how the money is paid, not a promise that every claim will produce money left over after finance is settled.
Do I have to buy another vehicle?
No. Any remaining claim payment made to you is yours to use as you choose.
You can put it towards another vehicle from a dealer of your choice, choose something completely different, or decide not to replace the vehicle at all.
When comparing policies, check whether another provider requires a replacement purchase, pays through dealer credit, or changes the settlement if you don't buy another vehicle.
What if I paid cash for my car?
GAP insurance isn't only for people with outstanding car finance. Depending on the policy you choose, it can help protect against the difference between your motor insurer's settlement and the original purchase price or replacement cost.
Paying for your car outright doesn't automatically mean you need GAP insurance, though. Consider the cover you already have, what you want to protect and whether the policy suits your vehicle and circumstances.
Compare our GAP insurance policies.
How much could GAP insurance pay?
Different types of GAP insurance calculate claims differently. Understanding that calculation matters just as much as knowing who receives the money.
See our GAP insurance payout examples and read the policy documents for the cover, limits and exclusions that apply.
