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 Vehicle Replacement Gap Insurance to help protect you and your finances.

Get a quote

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 £1,000 motor insurance excess.

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

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.

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.

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.

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

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.

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.

Helvetia Global Solutions Ltd (UK Branch). An A-rated insurer.

Helvetia Global Solutions Ltd’s UK Branch is registered in England & Wales under UK Establishment number: BR024650.

Helvetia Global Solutions is incorporated in Liechtenstein, registration number 0002191766. Helvetia Global Solutions is authorised and regulated by the Liechtenstein Financial Market Authority, Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority.

Registered on the Financial Services Register under the firm reference number 454140.

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

If you sell your vehicle, provided that no claim has been made under the policy, you may transfer the remaining cover to the replacement vehicle, subject to our agreement and that your new vehicle is within the same risk pricing bracket (you can contact us to confirm this). If there is no change in risk pricing bracket, then no fee will apply for this transfer. Otherwise, you may be required to cancel your existing policy, obtain a pro-rata refund and take out a new policy.

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.

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.

Not as standard. However, we may offer the option for a courtesy car at an additional cost during the purchase process.

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.

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

A total loss (often referred to as a write-off) is when your motor insurer determines that your vehicle is either beyond economic repair or has been stolen and not recovered.

In these situations, the cost of repairing the vehicle is considered uneconomical compared to its market value, or the vehicle cannot be returned. Your insurer will then offer a settlement based on the vehicle’s value at the time of the incident.

You need to wait until your motor insurer has declared your vehicle a total loss before you can make a claim. Once they have done that, the process is perfectly straightforward:

1. Check your policy wording for claims contact details (if you're unsure, give our team a call on 01422 756 100).
2. Fill out the claims form and send requested evidence.
3. Your paperwork will be checked.
4. If all is approved, your money will be sent to you via bank transfer.

For more information, head over to our guide on how the claims process works.

Never accept an offer from your motor insurance provider without approval from our claims team, as this may invalidate your policy, and in most cases, we can secure a better offer for you.

Yes, if you wish to discontinue your policy, then you can cancel.

Usually, to be entitled to a full refund, you need to do this within 14 days of the cover’s start date. However, we offer you an extended grace period of 30 days. Beyond that period, you'll be refunded on a pro-rata basis, excluding any arrangement fees that may be applicable.

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

Yes; you are covered 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 and you go off to pay for fuel which results in the vehicle being stolen.

Please see your policy wording for full details. However, the main exclusions of Gap Insurance are when the vehicle becomes a total loss as a result of:

• The driver being under the influence of non-prescription drugs or alcohol
• Being involved in illegal activity
• Fraud or an act of wilful negligence, e.g., leaving keys in the ignition whilst the vehicle is unattended.

Yes, subject to your comprehensive motor insurance being extended to the relevant country, you are covered in Ireland, the Isle of Man, the Channel Islands, Switzerland, and the countries of the European Economic Area.

We are an internet-based provider, and as such, we have lower overheads than motor dealers. As a result of the high volume of Gap Insurance that we sell annually, we can 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 in no way means that you are buying an inferior product; it just means that they are making more profit from your purchase!

Get a quote

Once your payment has been processed, your policy documents will be issued to you, usually within 2 hours.

You will also receive confirmation of your payment. Both documents should be retained for your records.

If you do not receive your policy documents or payment confirmation within this timeframe, please contact our team on 01422 756 100.

Most of our policies are fixed-term, with a one-off payment.

Alternatively, we may be able to arrange payments over 10 months. Please note that the payments are collected by a third-party agency and a small administration fee applies.