Gap Insurance

We understand there’s nothing more exciting than buying a new car – that fresh smell of upholstery and the feeling when you take it out for the first spin. But, from time to time misfortune can strike, and your precious car could be the target of thieves, or it may become involved in an accident causing it to be written-off.


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

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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.

In the event of such circumstances, the prior depreciation of your vehicle could mean that your insurer only pays out part of the car’s original purchase price. This could put you in a potentially tricky financial situation and leave you unable to replace your car to the same specifications.

That’s where GAP (Guaranteed Asset Protection) insurance comes in.

Here at Direct Gap, we pride ourselves on our superb value and our excellent service. We handle our claims in-house, meaning you’ll deal with our UK-based team of trained insurance professionals who operate with a friendly approach.

We don’t expect everyone to be quite so knowledgeable about gap insurance, so we’ve put together this handy guide covering a range of frequently asked questions:

How much can cars depreciate?

Depreciation represents the greatest cost to car users after fuel expenses, but the rate of depreciation can vary wildly depending on the age, make, model and mileage of a vehicle, so there’s no single answer to this question.

However, research shows that the average car depreciates by up to 60% in the first three years. That means if you were to purchase a vehicle for £20,000, it could be worth only £8,000 three years later. Fortunately for you, Direct Gap’s excellent range of gap insurance means you’d be covered for that £12,000 shortfall in the event of you becoming involved in an accident which causes a total write off.

How does gap insurance work after a car is stolen?

Our gap insurance policies are not only designed to cover your shortfalls in the wake of accidental damage, however. We understand that your beautiful new car can sometimes be the target for thieves and, occasionally, the unthinkable happens and you wake up one morning to find your pride and joy has been wrongfully taken.

Of course, we hope this never happens to you, but if it does, our range of gap insurance products will help you cover the difference between the original cost of your car and its value when it was stolen.

Is gap insurance just for new cars?

No, you can also take out gap insurance even if your car is not brand new and fresh off the forecourt. With an older car, the difference between its value at the time you took out the policy and the point at which it was declared a total loss may be less significant than with a newer model, so it’s worth weighing up the financial benefits of gap insurance in that instance. Additionally, it’s worth remembering that any car more than 10 years old or with more than 100,000 miles on the clock will not qualify for gap insurance.

Which gap insurance do I need for PCP?

If you’ve bought your car via PCP (Personal Contract Purchase), choosing from our range of products will depend on your specific circumstances. For example, Finance/Contract Hire gap insurance may be best if you have put down a minimal deposit, as it will cover the difference between the outstanding amount of finance remaining on your agreement and the value of the car at the point where it was declared a total loss.

Alternatively, you could opt for our Vehicle Replacement + gap insurance, which will pay the difference between your motor insurer’s settlement and the cost of a replacement car, matching the original specifications of the vehicle.

If you’ve put down a large deposit on your car, our Return to Invoice + gap insurance may be the preferred option, as it will cover the difference between your insurer’s pay-out and the purchase price of your vehicle. Whatever your situation, here at Direct Gap we’re committed to providing the solution that best suits your requirements.

Will gap insurance cover hail damage?

Yes, our gap insurance offerings will cover you if your car becomes damaged by falling hail. We understand that the famously unpredictable UK weather means your car can become unexpectedly damaged. There’s not much you can do about mother nature, so we’re happy to cover you for 

Will gap insurance cover Uber drivers?

Our range of gap insurance products exclude anyone using their vehicle for hire and reward schemes, such as taxi drivers, couriers or hauliers. So, if you’re an Uber driver, our gap insurance will not be applicable to you.

Is gap insurance included in a lease car?

Almost all of the time, gap insurance does not come as part of your lease agreement. So, if you want to protect your finances in the wake of your car being declared a total loss, our Finance/Contract Hire gap insurance enables you to do exactly that, as it will cover any outstanding finance / rentals on your contract.

How does the application process work?

We want to make your life as straightforward and hassle-free as possible, which is why we’ve made it perfectly simple to get your initial quote through our website. All you need to do is enter the cost of your vehicle and the length of policy you wish to take out, and we’ll calculate your quote in seconds. And, to avoid any confusion, once you select the ‘buy now’ option, we’ll make it clear what your policy does and does not cover.

Of course, should you wish to contact one of our expert team members, you can give us a call on 01422 756100, email us at or simply get in touch via our online contact form. What could be easier?!

How can I pay for gap insurance?

At Direct Gap, we understand the importance of flexibility, which is why we offer our customers different payment options on top of our excellent range of gap insurance products.

When you take out a policy with us, you can pay your premium up front in one go. Or, if you’re seeking pay monthly gap insurance, that’s no problem either. You can simply pay us in the form of 12 monthly instalments. Please note that they can only be set up via telephone and the minimum premium that we can finance is £100.

Can I buy gap insurance at any time?

You need to purchase your gap insurance policy within 180 days of taking ownership of your vehicle.

If your car is brand new, your motor insurance may cover you for a replacement within the first 12 months, in which case you can defer the start date of your gap insurance until the car is a year old. However, even if you are planning to defer, you still need to buy your policy within the first 180 days of ownership.

Can I cancel my gap insurance?

Should you decide that you no longer wish to continue with your gap insurance policy, we offer the opportunity to cancel.

The law states that, to be entitled to a full refund, this must be done within 14 days, but here at Direct Gap we offer you a 30-day grace period to change your mind. Beyond that initial 30 days, if you subsequently decide to discontinue your policy, you’ll be charged a £35 cancellation fee and be given a refund on a pro rata basis.

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