Free Gap Insurance

Free Gap Insurance from Direct Gap is a complimentary form of cover which lasts for 14 days from the policy start date.

In the event of your vehicle being written off or stolen, Free Gap Insurance will pay the difference between the purchase price and the motor insurer’s settlement at the point of total loss.

The maximum payment for a Free Gap Insurance policy is restricted to £5,000.

  • Free 14-Day Drive Away Gap Cover
  • Returns you back to the vehicle invoice price
  • Covers new and used cars
  • Covers all factory fitted optional extras
  • Covers loss of vehicle through theft of keys
  • Covers all drivers on your insurance policy


What is Free Gap Insurance?

Free Gap Insurance is available as 14-day complimentary cover for your pride and joy. It works in much the same way as standard Gap Insurance in that it provides valuable financial protection in the event of your vehicle being declared a total loss.

So, if your car is written off in an accident or stolen within the 14-day policy period, your Free Gap Insurance will pay the difference between the original purchase price and the settlement you receive from your motor insurers. Please note, however, that the maximum amount we can cover through Free Gap Insurance is £5,000.

How does Free Gap Insurance work?

When you purchase a vehicle, depreciation means it’s likely to be worth significantly less a few years down the line – and this is especially true of new models, which can depreciate quickly. This can be a problem if your car is declared a total loss i.e., written off in an accident or stolen.

That’s because your motor insurers will offer a settlement in line with the vehicle’s current market value, rather than what you paid for it in the first place. Let’s say for example that you bought a new car for £20,000 but at the time it was written off its value had dropped to £15,000. That leaves you £5,000 out of pocket, but with Free Gap Insurance from Direct Gap you would be covered for that shortfall.

That £5,000 represents the maximum we can cover with Free Gap Insurance, but it is highly unlikely any vehicle would depreciate by more than that amount over the duration of a 14-day policy.

Take Out Free Gap Insurance

What cover does Free Gap Insurance provide?

Here you can find a summary of the policy benefits of Free Gap Insurance:

  • All drivers named on your standard insurance policy are covered.
  • Can be taken out to insure both new and used models.
  • Returns you back to the vehicle invoice price.
  • Provides cover for all factory fitted optional extras.
  • Is valid in the event of a total loss due to theft of keys.

What are the benefits of Free Gap Insurance?

Free Gap Insurance from Direct Gap offers you the chance to protect your pride and joy for 14 days without paying a penny. If something were to happen during that period and your car was written off or stolen, you’d be covered for the difference between the purchase price and the motor insurance settlement.

In the meantime, the 14 days of complimentary cover offers you the chance to find out more information about Gap Insurance, work out whether it’s right for you and shop around for the best deals.

Take Out Free Gap Insurance

What are the restrictions on Free Gap Insurance?

As with any type of policy, there are restrictions that apply to Free Gap Insurance:

  • The cover lasts for 14 days and the maximum we will pay is £5,000.
  • The offer is limited to one policy per customer.
  • Your vehicle must have been purchased in the past 30 days.
  • Your vehicle must be covered under a main motor insurance policy.
  • Your vehicle must be less than 10 years old and have covered fewer than 100,000 miles.
  • Contract hire and lease vehicles are not covered.

The above are a selection of the main restrictions that apply to our Free Gap Insurance. For a comprehensive list, please see the policy wording.

What happens at the end of the 14-day period?

When your Free Gap Insurance period ends after 14 days, rest assured there is no obligation to take out a standard Gap Insurance policy. We will take no payment details up front and you will receive an email to inform you that your period of complimentary cover is now over.

If you do not wish to take out standard Gap Insurance at that point, there is no need for you to do anything. The Free Gap Insurance policy will automatically cancel at no charge to you. However, if you do wish to purchase Gap Insurance after those 14 days are up, you can call us on 01422 756 100 or get a quote online in a matter of moments.

How do I take out Free Gap Insurance?

Taking out Free Gap Insurance with us couldn’t be simpler. All you have to do to get started is enter your vehicle’s purchase price and then select the pre-determined options on cover limit and term length.

After that, just fill out some basic details about yourself and your vehicle and you’re all set to confirm the start of your policy.

Take Out Free Gap Insurance

How should I calculate the vehicle purchase price?

The purchase price is the actual invoice price that you pay for the vehicle. You should deduct any discounts but do include all factory fitted accessories.

You should exclude any additional payments for warranty charges, insurance premiums, finance charges, road fund licence, cost of fuel and negative equity from a previous vehicle.

Who is the insurer of this Free Gap Insurance 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.

What is the claim limit on Free Gap Insurance?

The claim limit is the difference between the motor insurance settlement at the point of total loss and the original purchase price paid. We will pay up to £5,000 on this complimentary product.

When and how do I receive my Free Gap Insurance policy documents?

Your Free Gap Insurance policy documents will be sent by email as soon as you take out the cover.

What is total loss?

Only your insurer can declare the vehicle a total loss, which in general can result 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.

Does Free Gap Insurance cover me for theft of vehicle with keys?

Yes, Free Gap Insurance covers you when keys are stolen from your home or office which results in vehicle theft. However, you must exercise due diligence and take appropriate steps to safeguard both the keys and the vehicle.

No insurer, including your motor insurer, will provide cover for wilful negligence. An example would be if you were to leave the keys in the vehicle and go off to pay for fuel, resulting in the vehicle being stolen.

Why would a Free Gap Insurance policy not pay out?

Please see the policy terms and conditions for a full listing, however the main exclusions are when the vehicle becomes a total loss while 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, e.g. leaving keys in the ignition whilst the vehicle is unattended.

Can anyone drive my vehicle and still be covered by my Free Gap Insurance?

Yes, Free Gap Insurance will include anyone covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.

Does Free Gap Insurance cover me in the EU?

Your Free Gap Insurance policy will cover you in the European Union as long as your main motor insurance policy is valid for that area.

What types of purchase is Free Gap Insurance suitable for?

Free Gap Insurance is suitable for cash purchase, hire purchase or PCP. It will NOT cover ANY aspect of finance settlement and is not suitable for contract hire.