Vehicle Replacement Gap Insurance

In the event of your car being declared a total loss, Vehicle Replacement Gap Insurance will pay the difference between the motor insurer’s settlement and the cost of a replacement vehicle matching the original model’s specification.

Vehicle replacement gap cover also protects you if you purchased your car under a finance agreement (except where the policy is transferred). When your vehicle is written off, if the outstanding finance balance is greater than the cost of a replacement, this total loss gap insurance will pay the difference between the vehicle value at the point of total loss and the remaining finance balance.

Cover will include up to a maximum of £250 motor insurance excess.

  • Covers new and used
  • Cover from 1 to 5 years
  • Covers dealer discounts
  • Covers Increase in car list price
  • Unlimited claim limits on vehicles up to £50k
  • Covers insurance excess up to £250
  • Covers all drivers on your insurance policy
  • Free transferable cover

Why choose Direct Gap for your Vehicle Replacement Gap Insurance?

We’re wholly committed to providing you with the policy that suits you and your vehicle. Here are just some of the reasons why you can rely on Direct Gap:

•  Integrity: We don’t make any commission on sales of total loss gap policies, so you can rest assured we have your best interests in mind.

•  Flexibility: We’ll work with you to find the cover that meets your specific needs.

•  Responsibility: We’re fully authorised by the Financial Conduct Authority and we adhere to the highest ethical standards at all times.

•  Knowledge: All our staff are fully trained specialists with a wealth of experience in motor insurance. And you’ll never be passed around a call centre – all claims are dealt with in-house.

•  Service: We always put our customers first. From our 5-star Feefo rating and the comments below, you can see it’s an approach that is appreciated.


  • Vehicle Retail Price:


  • Car Insurance Pays:


  • Gap pays:


With VRI+ Gap Insurance you get back the full £25,000 replacement price of the vehicle!  Even if the price of the car has increased in price.

  • Vehicle Retail Price:


  • Motor insurance pays:


  • Gap pays:


You receive £25,000 in total.  The finance company are owed £17,000.

You keep the £8,000 balance after the finance has been settled.

See what our customers are saying about us

Stuart Bennett 26 Sep 2014


Fantastic, easy to use and much cheaper than main dealer prices!

Paul Lomax 10 Apr 2015


Very easy and efficient, great help from Ray via telephone.

Adam 26 Jan 2017


£60 cheaper than dealer, 5 years cover in place of 2-3 AND cover extends to cost of replacement vehicle not just return to invoice - SUPERB PRODUCT, excellent value for money

Joseph Collard 26 Jul 2014


Good value in comparison to cost through dealer

J Mason 1 Jun 2015


Found the website easy to use, and the services to be explained very clearly. The SEO work by the company certainly aided in me purchasing from you today, as you were a higher hit on the Google Results page.

Daniel Coleman 4 Dec 2019


Easy smooth transaction and better value than the dealers. So glad I chose you guys and didn't fall into the dealer trap. Lets just hope I never have to use the Insurance.

Ross Ranson 16 Oct 2018


Comprehensive cover and easy to purchase. Thank you

Paul Cross 26 Apr 2022


Quick, easy, and very competitive.

Chi Cham 13 Jan 2019


Website very informative, best price by far, easy decision to buy policy.

carly spink 23 May 2014


fab prices and easy website thank you

Barrie Pinchbeck 27 Mar 2019


Phoned and spoke to a gentleman called James to answer 1 or 2 queries before completing the application on line. James was very helpful answering all of my queries. Easy and quick to complete th application on line. Hassle fr…

Linda 25 Apr 2014


Very helpful website

Tania Stone 18 Dec 2013


I used you to ensure I protect my new car against total loss I found you through the Which site which gave me a lot of confidence in the products.

John White 3 Aug 2014


Easy, clear and concise. Hassle free web site

M S Powell 17 Dec 2013


Thanks for recommending the tyre insurance cover as well as the VRI policy

C.J.Hillaby 7 Feb 2018


My rating is based on your performance in answering my questions by telephone and the ease of use of your internet website, clear use of english, and efficiency in completing my application. I felt that the price quoted and l…

darren skipper 9 Jan 2014


Very good.

Mrs Charlotte Graham 27 May 2015


Very easy process to apply. I hope to never have to use it but it offers good piece of mind at a fraction of the cost that the dealership offer these policies at.

Gerry Howley 26 Aug 2017


excellent easy to use site and great price. I will recommend you in future

Trevor Ranns 26 Nov 2014


Took a free policy for 14 days and got good service, reminded me when expired and advised on best option for my needs.

Paul Dawson 13 Oct 2015


Very efficient !

Nigel Lewis 26 Aug 2020



Lisa 5 Feb 2016


Phoned for advise on which GAP option was relevant to buy for my situation and they were very helpful, thank-you.

Gillian Little 26 Oct 2015


Straight forward and Ray Davis on phone at Direct Gap was very helpful.

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What is Vehicle Replacement Gap Insurance?

In the event of your vehicle being written off, this total loss gap insurance will pay the difference between the motor insurer’s settlement and the price of a replacement vehicle matching the cost of the car’s original specification.

If you purchased your vehicle under a finance agreement (except where the policy is transferred) and the outstanding finance balance at the point of total loss is greater than the replacement vehicle cost, this insurance will pay the difference between the vehicle value at the time it was written off and the outstanding finance balance.

The value of your vehicle at the time of being declared a total loss will be different to when you first purchased it, and your motor insurance company will offer you a payout aligned to its current worth, rather than its original purchase price.

It is estimated that cars can depreciate by as much as 60% over as little as three years, which may leave you with a significant financial shortfall if your car was to be written off. That is an unpleasant scenario for anyone to imagine, which is why we offer the best in Vehicle Replacement Gap Insurance, to help protect you and your finances.

Get a quote for Vehicle Replacement Gap Insurance

How does Vehicle Replacement Gap Insurance work?

For example, if you paid £25,000 for your car, but its value at the time of being written off was only £15,000, your Vehicle Replacement Gap Insurance would cover the £10,000 difference between that original purchase price and the settlement you received from your motor insurer. Additionally, if the value of your replacement vehicle had gone up from the original purchase price, your gap insurance policy would deliver a payout to reflect that.

Alternatively, let’s assume you bought your car on a finance deal for £25,000 and, at the time of being written off, you owed £17,000. Your vehicle replacement gap policy would ensure the finance company received their money, while you would keep the remaining £8,000. In cases where the outstanding balance was greater than the cost of a replacement car, this policy would cover the difference between the vehicle’s value when it was written off and the amount left outstanding on the finance agreement.

Furthermore, your cover will include up to a maximum of £250 motor insurance excess.

Do I need Vehicle Replacement Gap Insurance?

There is no obligation to take out total loss gap insurance, but it can prove a sensible decision if your car were to ever be written off. If that were to happen and you did not have vehicle replacement gap cover, you could be left significantly out of pocket or with a hefty amount to repay on your finance agreement.

We would always recommend carefully reading through the terms and conditions of your motor insurance policy. If your car is new, your insurer may include the offer of a replacement vehicle within the first year of ownership. If that is the case, you could always choose to defer the start of your Vehicle Replacement Gap Insurance until your car is 12 months old.

Get a quote for Vehicle Replacement Gap Insurance

What is total loss?

Only your motor insurer can declare the vehicle a total loss. In general, this 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 total loss gap insurance cover me if I’m at fault?

Yes, you will be covered even if the incident that caused your car to be written off was your fault. However, you will not be covered if the driver is under the influence of alcohol or non-prescription drugs or involved in illegal activity, fraud or an act of wilful negligence. Please take the time to carefully read through the terms and conditions of your replacement vehicle gap policy for full details.

Can I get Vehicle Replacement Gap Insurance if I bought my car on finance?

Yes, this policy is an option for you if you have purchased your car via a finance agreement. You will receive any money that is left over once the finance company have been paid what they’re owed, and if the outstanding balance is greater than the cost of a replacement vehicle, this policy will cover the difference between the remaining balance and the value of the car when it was written off.

Does Vehicle Replacement Gap Insurance settle my outstanding finance?

Yes, in the event that your finance settlement exceeds the purchase price of the vehicle, this total loss gap insurance policy will settle the outstanding finance shortfall and release you from the finance contract. This excludes negative equity carried forward from any previous finance agreement and arrears on the contract.

Do I still have to make payments on a car that is written off?

No, once your motor insurance company have declared your car a total loss, your finance company will subsequently receive the outstanding balance thanks to the cover provided by your Vehicle Replacement Gap Insurance policy.

Get a quote for Vehicle Replacement Gap Insurance.

Is Vehicle Replacement Gap Insurance only for new cars?

You can take out total loss gap cover on a used car, but it may make more sense to do so on a new vehicle, which would likely come with a higher initial value and could leave you with a greater financial shortfall in the event of it being declared a total loss.

How long can I have owned the vehicle and still buy the policy?

Our vehicle replacement gap policy can be purchased providing you have owned the vehicle for fewer than 180 days.

I have new-for-old cover for 12 months on my motor insurance; can I defer my vehicle replacement gap policy?

Yes, you can defer the start date for up to a maximum of 12 months but the cover must be taken out within 180 days of purchasing the vehicle. The policy start date must not exceed the anniversary of the vehicle’s first registration.

It is entirely your responsibility to ensure that you have the appropriate cover provided by your motor insurer during the first 12 months.

How can I pay?

You can pay for your Vehicle Replacement Gap Insurance via a one-off payment with the use of a credit/debit card without any charges. Alternatively, we can arrange for credit payments over 12 months. Please note that the payments are collected by a third-party agency and a small administration fee applies.

Why is Direct Gap so much cheaper than a motor dealer’s quote?

We are an internet-based provider, which means we have lower overheads than motor dealers. As a result of the high volume of total loss gap cover that we sell, we are able to provide quality policies at the keenest prices.

You can be confident that our prices are lower than those quoted by dealers and many other websites. Paying less than you have been quoted elsewhere does not mean you are buying an inferior product, it just means that they are making more profit from your purchase!

Get a quote for Vehicle Replacement Gap Insurance.

When can I claim on my Vehicle Replacement Gap Insurance?

You will be able to claim on your policy once your car has been declared a total loss by your motor insurance company.

The process will then be as follows:

  • You will need to call the claims line on 01422 756100
  • You’ll then have to fill out the claims form
  • The relevant paperwork will need to be checked
  • Your money will be issued to you by way of bank transfer




What is the claim limit?

The claim limit is the difference between the motor insurer’s settlement and the cost of a replacement vehicle matching the original vehicle specification or to settle the finance shortfall, whichever is greater.

Why would this policy not pay out?

Please see the policy terms and conditions for a full listing, however the main exclusions on your Vehicle Replacement Gap Insurance 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, e.g. leaving keys in the ignition whilst the vehicle is unattended.

What is the vehicle purchase price that I should use to calculate the cost of the policy?

The purchase price is the price of your vehicle as confirmed in the sales invoice, which includes factory-fitted accessories and dealer-fitted options up to £1,500 and paintwork protection systems up to £250.

You should exclude all deposit allowances, discounts, rebates, concessions, cashbacks, incentives and contributions. Also exclude new vehicle registration fees, road fund licence fee, number plates, warranty costs, insurance premiums, fuel and other extras, arrears, or negative equity.

Get a quote for Vehicle Replacement Gap Insurance

Who is the insurer of this policy?

The insurer is Acasta European Insurance Company Limited, (registered no. 96218). It 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 Vehicle Replacement Gap Insurance cover my motor policy excess?

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

Can my vehicle replacement gap policy be transferred to another vehicle?

Yes, you can make one transfer during the period of insurance.

If you sell your vehicle, provided that no claim has been made under this insurance, you may transfer the remaining cover to the replacement vehicle, subject to our agreement. No fee will apply for this transfer. A new schedule will be issued confirming the replacement vehicle details. Where the replacement vehicle is deemed to be of higher value, an additional premium may be required.

Cover will not include any refinancing.

In the event of bereavement, the remaining benefits of Vehicle Replacement Gap Insurance may be transferred to the policyholder's spouse or partner.

Am I covered for theft of vehicle with keys?

Yes, this total loss 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 – for example if you leave the keys in the vehicle to pay for fuel and the vehicle is stolen.

Can anyone drive my car and still be covered by Vehicle Replacement Gap Insurance?

Yes, vehicle replacement gap will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver.

Am I covered to drive my vehicle abroad?

You are covered in the UK, Isle of Man and the Channel Islands. You are also insured in member countries of the European Community and any other country for which 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.

Get a quote for Vehicle Replacement Gap Insurance

Do I get a courtesy car with vehicle replacement gap insurance?

No. Direct Gap are providers of additional cover, and as such do not offer a courtesy car. Your motor insurance policy may include this, but please check the terms and conditions of that policy to be certain. Nor do Direct Gap provide you with the replacement vehicle – our total loss gap insurance policy is designed to ensure you receive the money you need to be able to afford a new car to the same specifications, but we do not provide you with the car itself.

Can I cancel my vehicle replacement gap cover?

Yes, it is possible to cancel your Vehicle Replacement Gap Insurance. To get a full refund, you would usually have to do so within 14 days of the policy’s start date. However, at Direct Gap, we offer you a 30-day grace period.

If you choose to cancel after those 30 days are up, you will be charged a fee of £35 and given a refund on a pro-rata basis.

How do I get a total loss gap insurance quote?

It couldn’t be simpler to get a quote for this total loss gap cover. Just enter your vehicle’s cost and the desired length of policy and you’ll have your estimate in a matter of moments.

Get a quote for Vehicle Replacement Gap Insurance

How old can my car be to buy Vehicle Replacement Insurance?

We can provide cover on vehicles up to 10 years old.