Compare GAP Insurance

GAP insurance is short for Guaranteed Asset Protection insurance. It is an optional policy that drivers can take out alongside their standard car insurance policy and pays out if your car gets written off or stolen. It is intended to cover the shortfall in value between the amount you initially paid for the car and the amount it is worth at the time it is written off.

Because new cars depreciate quickly and because car insurers only compensate you for the current value of your car, you could receive significantly less money than the sum you paid for your vehicle. GAP insurance would make up this difference and compensate you for the amount you paid for the vehicle so you don’t lose out financially.

Only you know if you need GAP insurance. If you bought a brand-new vehicle that will depreciate quickly, or have a car on finance, then you may consider getting GAP insurance so you can get a brand-new replacement car or clear any outstanding finance if your car is written off.

You should check if your car insurance policy already has new car replacement included before getting GAP insurance, so you don’t end up paying for any unnecessary cover.

As with any other insurance policy, when you take out GAP insurance you will pay a premium, either upfront or monthly, to get cover for a certain period of time. If your car is written off or stolen, you would then contact your GAP insurer to make a claim. Each provider and policy will have their own terms and requirements, so you should check your policy for further details.

You will only be able to make a claim on your GAP insurance policy if your car is declared a total write-off by your car insurer and your main car insurance claim has been successful.

There are many variables that affect how much a GAP insurance policy costs. The age and value of your vehicle and whether it is on finance can all impact the cost of GAP insurance, so drivers should compare providers to find an affordable policy that still meets their needs.

Some dealers may offer GAP insurance when you buy a car from them, but it is worth looking at your other options to see if there are cheaper and more suitable alternatives.

You can buy GAP insurance at any time, but it is generally more useful the sooner you get it. With some GAP insurance policies, you will need to get the cover within a certain number of days of purchasing the vehicle or taking out the car finance agreement.

It is possible to take out GAP insurance later on, but this would normally only cover up to the value that the car is worth at the time of taking out the policy, rather than the amount you paid for the car.

If you want to buy GAP insurance from a dealership rather than an independent provider, there are rules about when you are able to purchase it.

It is up to you. You should bear in mind that, if your car is written off or stolen, you will still be responsible for paying any outstanding finance and that, due to depreciation, your car insurance payout may not cover this.

If you would struggle to clear your car finance payments with your own money, then GAP insurance could make up the difference and clear the debt.

GAP insurance is most useful for brand-new cars as these will depreciate in value much faster than used cars. Because the rate of depreciation of used cars is slower, the difference between the insurance payout and what you paid for the car is likely to be much smaller than with a new car.

You can still get GAP insurance for a used car, depending on how old it is, but you should weigh up whether it is worth getting the cover or if you could manage without it.