Why might someone take out GAP insurance?

New cars lose value quickly. If your car is written off or stolen, your motor insurer will usually pay its market value at the time, which may be much less than you paid or still owe on finance. GAP insurance aims to cover that difference, so it may be worth considering if that shortfall would be a problem for you.

Are there any exclusions with GAP insurance?

Your car usually has to be confirmed as a total loss by your motor insurer, and GAP only pays once that claim is settled. Policies typically won't pay out if the car was written off as a result of drink or drug driving, or if it was being driven by someone without a valid licence. Undeclared modifications can also cause problems, so read the exclusions carefully.

Can I get GAP insurance if my car was bought on finance?

Yes, GAP insurance is commonly bought for cars on finance. Many policies have to be taken out within a set period after you buy the car, so check the time limit.

What information do I need for a GAP quote?

You'll usually need the price you paid for the car, not including any later modifications, and how many years of cover you want.

Insurance basics

GAP insurance

What GAP insurance is, how it can cover the shortfall after a write-off, the main types of GAP cover and the common exclusions to check before buying.

Guaranteed asset protection, more commonly known as GAP insurance, is there to protect you financially if your vehicle is written off or stolen and not recovered.

If your car is written off, your motor insurance will usually pay out its market value at the time of the claim. If you still have finance on the car, or it has lost a lot of value since you bought it, that payout may not be enough to clear what you owe or replace what you paid. GAP insurance is designed to cover some or all of that shortfall.

Nobody can predict an accident, but understanding GAP cover can help you decide whether it's right for you.

The main types of GAP insurance

When you look at GAP insurance, you'll be asked which type suits your situation.

Replacement GAP insurance

Replacement GAP aims to cover the difference between your motor insurance payout and the cost of replacing your vehicle with the same or similar model, taking into account any outstanding finance.

Invoice GAP insurance

Invoice GAP aims to pay the difference between your motor insurance payout and the original invoice price you paid for the vehicle. It is commonly offered by motor dealers.

Contract hire GAP insurance

If your vehicle is on a contract hire or lease agreement and is written off, your motor insurance payout may fall short of what you still owe under the agreement. Contract hire GAP is designed to help cover that remaining amount.

Top-up GAP insurance

Sometimes called return to value GAP, this tops up your motor insurance payout towards the value of the car when you bought it. Policies set their own limits on vehicle age, value and the amount they will pay, so check the terms.

Before you buy

You don't have to buy GAP insurance from the dealer who sells you the car. You can read more about your rights when buying insurance on the FCA website, and if you have a complaint you can't resolve, the Financial Ombudsman Service may be able to help.

Other cover we can help with

Kompare doesn't currently offer quotes for GAP insurance. We can help with van insurance, breakdown cover and other cover. See how we work for more.