Gap Insurance
GAP Insurance protects you against financial loss in the unfortunate event of a total loss insurance claim
What is GAP Insurance?
If your vehicle is written off, your motor insurer will typically pay its current market value. Due to depreciation, this may be far less than the amount you originally paid or still owe on finance or a lease. GAP insurance steps in to bridge the difference. Its aim is to cover the gap between your insurance payout and your vehicle’s purchase price or outstanding finance, covering any shortfall.
Flexible GAP Insurance options
Our recommended GAP Insurance partner, MotorEasy, offers a selection of 5-star Defaqto-rated GAP policies designed to suit how you purchased your vehicle. Simply get a quote, and they’ll match you with the policy that best fits your needs. Options include:
Return to Invoice (RTI) GAP
Ideal for new or used cars bought with cash, a loan, or a Personal Contract Plan (PCP). RTI covers the difference between your car’s original invoice price and its market value at the time of a total loss claim. You can take out RTI GAP within six months of purchasing your vehicle.
Return to value (RTV) GAP
Best for vehicles purchased more than six months ago. RTV covers the difference between your car’s value when you start the policy and its market value at the time of a write-off.
Lease and Contract Hire GAP
Designed for vehicles on a lease or contract hire agreement. This policy covers the difference between your motor insurer’s payout (based on market value) and the outstanding balance on your lease or contract hire agreement, including any early settlement fees.
Key Benefits
Why choose MotorEasy GAP Insurance:
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Theft
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Accidental damage
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Fire damage
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Water damage
- Covers total loss claims due to an accident, theft, fire or flood.
- Claims settled within 24 hours of an insurance pay-out
- Provides £500 to cover additional insurance excess fees.
- Cover for optional extras and accessories provided they’re installed by the factory or dealer
- Five-star Defaqto rated
Customer reviews
Good but hope not to use…
Easy to set up and to compare the options available friendly and knowledgeable advisors I’ve given a 4 because I have not and hope not to use the claims service. It is however comforting to know you have the potential insurance gap covered.
Dave
Swift and hassle free
Swift and hassle free After purchasing a used car just one year old, I was recommended to get GAP insurance to protect the sales value in case of accident. I went through a comparison site and saw MotorEasy. It wasn’t the cheapest option but it offered the best coverage. Signing up was swift and hassle free.
Lynne Thomson
Online quote for GAP Insurance
Online quote for GAP Insurance. Easy to follow and sign up to. Very informative and the pricing was very competitive against other providers. Paid over 3 instalments. Very happy.
Tanner
FAQS
The moment you buy your vehicle and start adding mileage, its value begins to depreciate. Unfortunately, this loss of value tends to fall at a faster rate than the interest you typically pay when financing or leasing a new vehicle.
If your car is later involved in a total loss claim, your main insurer’s payout can be less than expected and often won’t be enough to clear the outstanding balance on your lease or finance agreement. A GAP policy tops-up an insurance payment, giving you the extra funds to settle any remaining costs to help fund your replacement vehicle.
A GAP Insurance premium will vary depending on the value of the vehicle and the period of time under cover. Most policies are typically priced between £100-300 for multi-year cover, with an average 3-year policy typically costing around £190. Shorter or longer terms are also available depending on how long you plan to keep your vehicle. It is generally best suited to newer cars, which tend to depreciate more quickly. For older vehicles that have already lost most of their original value, GAP insurance is unlikely to provide significant benefit.
Unlike motor insurance, GAP insurance is not a legal requirement but it can be a great way to secure peace of mind if you have concerns about the rate of interest on your loan, lease or finance agreement. It gives you that extra reassurance that, for a modest initial sum, you’ll be covered against outstanding funds following a potentially stressful total loss claim.
You can purchase a GAP insurance policy at any time, but it's best to arrange it in the earlier stages of vehicle ownership. If you wait too long, especially after a few years, the value of your car will have depreciated more, meaning if you purchase GAP at that point, there will be less of a shortfall to cover in the event of a claim.
Payouts can vary depending on the type of vehicle under cover. Those with a high rate of depreciation will typically receive higher payouts. Below is a summary of the average GAP payout by MotorEasy during 2024:
| Month | 2024 |
|---|---|
| January | £5,429.64 |
| February | £3,933.62 |
| March | £4,884.16 |
| April | £5,824.57 |
| May | £4,990.73 |
| June | £5,713.20 |
| July | £5,583.60 |
| August | £5,775.16 |
| September | £6,077.15 |
| October | £5,999.66 |
| November | £6,635.32 |
| December | £5,858.99 |
A vehicle write-off is a stressful event. Having to pay-off money still owed on a car you can no longer drive makes matters even worse. With GAP Insurance you’ll have the peace of mind that, should the worst happen, you’ll receive an additional pay-out to fund a replacement vehicle.
GAP Insurance coverage varies depending on the type of policy you choose, but there are some common exclusions that apply to all policies. Here’s what GAP Insurance typically doesn’t cover:
- If you don’t have a comprehensive main motor insurance policy in place.
- If your vehicle is not declared a total loss (write-off) by your insurer.
- If you're Not the registered keeper or not named on the finance agreement for the insured vehicle.
- If the write-off occurs while the vehicle is being used for racing, competitions, speed testing, off-road driving, or similar high-risk activities.