Agreed Value Car Insurance

If your vehicle is written off in an accident or stolen, the pain and inconvenience of being without a car is bad enough. If you’re left out of pocket on top of that, those feelings of frustration are only like to grow.

Your motor insurer will offer a payout in line with your car’s value at the time. Due to depreciation, that could be thousands of pounds less than what you paid for it in the first place. That’s a position nobody wants to be in, but Agreed Value Car Insurance from Direct Gap can protect you.

If your vehicle is declared a total loss, Agreed Value Gap Insurance will pay the difference between your motor insurer’s settlement and 100% of the Glass’s Guide Retail Price on the day you purchased this policy.

  • Covers new & used cars
  • Cover from 1 to 4 years
  • 30-day money back guarantee
  • Covers all factory fitted optional extras
  • Covers loss of vehicle through theft of keys
  • Covers insurance excess up to £250
  • Covers all drivers on your insurance policy
  • Free transferable cover

Why choose Direct Gap for your Agreed Value Insurance policy

We’re one of the leading providers of Gap Insurance in the UK. Here are just some of the reasons to come to us for your Agreed Value policy:

·  Knowledge: All of our team are highly trained, with plenty of expertise in all things motoring and insurance. You won’t have to deal with any call centres either – all claims are dealt with in-house.

·  Integrity: Our staff will always put your best interests first – they don’t make any commission from sales of Agreed Value Car Insurance.

·  Responsibility: We hold ourselves to the highest possible standards and we’re fully regulated by the Financial Conduct Authority.

·  Flexibility: We’ll do everything we can to provide you with an Agreed Value Insurance policy that works for you and your vehicle.

·  Service: We pride ourselves on looking after our customers, so we’re delighted to receive a 5-star Feefo rating as well as thousands of glowing reviews, some of which you can see below.


  • Vehicle Retail Price:


  • Car Insurance Pays:


  • Gap pays:


The vehicle has a retail price of £16,000 when you buy the policy.  The vehicle is a total loss 12 months later and your insurer pays £12,000.

The gap insurance policy pays you £4,000 to return you to the full retail price.


What does ‘agreed value’ mean?

‘Agreed value’ refers to the retail price of your vehicle on the day that you purchase this policy. We use the Glass’s Guide to determine the market worth of your car, and your policy will cover the difference between that figure and the payout you receive from your motor insurer in the event of your vehicle being written off or stolen.

Get an Agreed Value Car Insurance quote

What is Agreed Value Car Insurance?

Agreed Value Insurance can provide priceless financial protection. If your car is declared a total loss, it covers the difference between the settlement from your motor insurance company and the retail price of your vehicle when you took out this policy.

How does Agreed Value Insurance work?

As an example, let’s say you bought a new car for £20,000 and took out an Agreed Value Insurance policy at the same time. After a couple of years, your vehicle is written off in an accident. Let’s say that, by this point, its worth has depreciated to £15,000. Your motor insurance company provides a settlement in line with its market value at that stage, rather than the £20,000 you initially paid. That leaves you £5,000 out of pocket, but your Agreed Value Insurance covers that difference, so you don’t lose out.

Do I need Agreed Value Car Insurance?

Agreed Value Insurance isn’t a legal requirement like a standard motor policy. However, it could prove a sensible decision. Cars – especially new models – can depreciate quickly, and if something were to happen to your pride and joy then you could be left thousands of pounds out of pocket, even once you’ve received a settlement from your motor insurer. Our quotes start from just £109, so we think it’s a small price to pay for that peace of mind.

Get an Agreed Value Car Insurance quote

What is total loss?

Only your insurer can declare the vehicle a total loss. Usually, this results from accidental damage, your fault or third-party fault, fire, theft or vandalism.

Total loss means that you have claimed under your motor insurance, your claim has been agreed, your vehicle has been forfeited (title of the vehicle transferred to the motor insurer) and a payment made following the incident.

Will my Agreed Value Car Insurance cover me if I’m at fault?

Yes, even if you are to blame for the accident that causes your car to be written off, you will still be protected by your Agreed Value Insurance. Of course, as with any policy, there are exclusions that apply. These include driving under the influence of alcohol/non-prescription drugs or being involved in illegal activity. You can read the full terms and conditions in your policy wording.

Can I get Agreed Value Insurance if I bought my car on finance?

Yes, you can take out Agreed Value Car Insurance for vehicles paid for on finance. However, if the outstanding finance balance exceeds the value that we have agreed upon, you will have to cover that difference from your own pocket.

Is Agreed Value Insurance only for new cars?

You can take out Agreed Value Car Insurance on a used vehicle, but it may make more sense to purchase a policy for a newer model. These will come with a higher retail price and tend to depreciate more quickly, so you could be facing a greater shortfall if your car is written off or stolen.

Can I take out an Agreed Value Insurance policy at any time?

Yes, Agreed Value Insurance can be purchased at any time, regardless of how long you have owned the vehicle.

Can I defer my Agreed Value Insurance policy?

There are some motor insurers that offer new-for-old cover in the first 12 months, which is why many drivers choose to defer their Gap Insurance policies for the first year. However, Agreed Value Insurance is designed to protect those drivers who fall outside of the usual 180-day qualifying period for our other gap policies, so deferring does not apply.

How do I get an Agreed Value Car Insurance quote?

To get a quote for Agreed Value Car Insurance, you just need to follow three simple steps. All we need from you is your vehicle’s value, your desired cover limit and length of policy. Once we have those details, you’ll have your estimate in a matter of seconds.

Get an Agreed Value Car Insurance quote

How can I pay for Agreed Value Car Insurance?

You can pay through one upfront payment via credit or debit card without any charges. Or, we can arrange credit payments over 12 months. Please note those payments are collected by a third-party agency and a small administration fee applies.

What is the claim limit?

The claim limit on an Agreed Value Insurance policy is the difference between the motor insurer’s settlement at the point of total loss and 100% of Glass's Guide retail value of the vehicle when you purchased the policy.

You need to select a suitable claim limit to ensure adequate cover for the term and price of your vehicle.

Why would this policy not pay out?

The main exclusions on this policy are:

The vehicle becoming a total loss whilst the driver is under the influence of non-prescription drugs; under the influence of alcohol; involved in illegal activity, fraud or an act of wilful negligence – for example leaving the keys in the ignition whilst the vehicle is unattended.

Please see your policy terms and conditions for a full listing.

Who is the insurer of this policy?

The insurer is Acasta European Insurance Company Limited (registered no. 96218), which is authorised and regulated by the Gibraltar Financial Services Commission and subject to regulation by the Financial Conduct Authority and Prudential Regulation Authority for the conduct of UK business.

The insurer is covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if the insurer cannot complete their obligations. This depends on the type of business and the circumstances of the claim. For claims against insurers 90% of the claim is covered with no upper limit.

When and how do I receive my policy documents?

Policy documents together with confirmation of payment are sent by email as soon as you make the payment.

Whose name should the policy be in?

The policy should always be in the name of the owner or registered keeper of the vehicle.

Does Agreed Value Car Insurance cover my motor policy excess?

Yes, up to £250 in the event of a total loss claim.

Can anyone drive my car and still be covered by my Agreed Value Insurance?

Yes, anyone included on your comprehensive policy as a named driver will be covered by your Agreed Value Car Insurance.

Does my Agreed Value Insurance cover me for driving abroad?

You are insured in member countries of the European Community. You are also covered in any nations where an International Motor Insurance Certificate (Green Card) is effective on your vehicle at the point of total loss up to 120 days in any one trip.

Do I get a courtesy car with an Agreed Value Insurance policy?

No, we do not provide a courtesy car as part of your Agreed Value Insurance. Your standard motor policy may include this as a benefit, but please check the terms and conditions to be sure.

Can I cancel my Agreed Value Car Insurance?

Yes, you can cancel your Agreed Value Car Insurance completely free of charge within 30 days of the policy’s start date. This is more than twice the legal requirement of 14 days. If you choose to cancel once that grace period ends, you’ll be charged a fee of £35 and given a refund on a pro-rata basis.