Gap Insurance

Gap insurance covers the difference between your insurance offer at the point your car is ‘written off’ or declared a total loss and the value of your car when you bought it, any outstanding finance payments plus – for some enhanced policies - any additional costs needed to get you back on the road with a car to the same specification as when it was purchased.

It’s important because cars depreciate over time and your motor insurer will value it in line with depreciation. If your car is 'written off' your motor policy insurance only covers your vehicle to its value at the point it is declared a total loss. This can be substantially less than outstanding finance commitments, the price you paid for your car and the cost of getting back on the road in a car with a similar specification.

Example

  • Vehicle Cost:

    £20,000

  • Car Insurance Pays:

    £7,000

  • Gap pays:

    £13,000

With Gap Insurance you get back the full £20,000 purchase price of the vehicle!

  • Vehicle Cost:

    £20,000

  • Motor insurance pays:

    £13,000

  • Gap pays:

    £7,000

You receive £20,000 in total.  The finance company are owed £17,000.

You keep the £3,000 balance after the finance has been settled.