Compare car insurance quotes
Find out more
Compare GAP insurance quotes for your car, van, motorbike and motorhome
Guaranteed Asset Protection (GAP) insurance protects you against financial loss if your vehicle is declared a total loss or write-off by your car insurance provider.
If you have a motor accident and your vehicle’s written off, or if your car’s stolen, your insurance will provide a financial settlement for the loss of your vehicle.
Unfortunately, your motor insurance usually only pays out the current market value, which is likely to be less than the price you paid.
GAP insurance is a standalone policy that’s designed to cover the difference between the price you paid for the vehicle and its current market value.
So, if you bought a car on finance for £20,000 and it depreciated by 60% in three years, the car would be worth £8,000. If the car was written off, your insurer would pay the market value of £8,000 (minus any excess), so you’re £12,000 out of pocket. GAP insurance would cover that £12,000 so you can then purchase a brand-new car.
If you have an accident that makes your vehicle unusable, first get in touch with your insurer and get the vehicle declared a total loss
Before you accept any settlement your insurer has offered, contact your GAP insurer. Negotiations are then between both insurers so you don't need to be the go-between
If you’re happy with the offer, sign and return the forms sent by the insurer and be prepared to provide supporting documents, like your insurance certificate and insurance settlement figure
You should first complain to the insurers if you’re not happy. If the issue isn’t resolved to your satisfaction, you can get in touch with the Financial Ombudsman who will investigate
GAP insurance provides additional financial peace of mind if your vehicle's written off, but it doesn't suit everyone.
It may be right for you if:
But you might not need it if:
You don’t have to buy GAP insurance. But it can provide peace of mind if you know that you’d want to buy a brand-new replacement if your car was written off.
It can also be useful if you bought your car on finance.
In these circumstances, if your car got written off or stolen, although motor insurance would pay out what your car’s worth at the time of the incident, you could still be left with outstanding payments on a car you no longer have. With GAP insurance in place, the loan would be paid off.
There are some exclusions. For example:
The cost of GAP insurance will depend on a few different factors:
Protect your car, van, motorbike or motorhome with GAP insurance from i-Wonder[1]
Buy GAP insuranceThere are a few different types of GAP insurance and some cost more than others. Choose which one you need carefully
The dealership where you purchase your car might offer you a GAP insurance policy, but it may not be the most cost-effective option. It’s a good idea to shop around.
This can bring policy costs down. But be sure you could afford to pay it in the event of a claim
There are five main types of GAP insurance. They all make up the shortfall for depreciation on your vehicle but work in slightly different ways.
If your vehicle is written off or a total loss, an RTI policy will pay the difference between the original purchase price and the payout received from your insurer. It might even cover any outstanding finance.
RTI is for vehicles bought from a dealer within the last six months.
Most insurers offer AVC for vehicles bought privately, or from a dealer after the RTI cut off point.
It covers the difference between the insurance valuation at the time it was written off and the value of the car, van, motorbike or motorhome when you started the policy.
This type of cover is for lease vehicles. Most insurers will cover outstanding rental payments or the termination fee, as well as any shortfall in the market value payout your insurer gives you.
This is for cars, vans, motorbikes or motorhomes bought on finance or a lease contract and will help clear any outstanding debt owed on the vehicle.
This type of cover is often part of a package. For instance, it can be combined with an RTI policy.
Similar to finance GAP insurance, but this policy is for if the loan amount is more than the cost of the motor. For example, if you’ve part-exchanged a vehicle before the finance was paid off, and the remaining amount has been moved across to your new deal.
In the event of a total loss, VR provides a payout equal to the difference between the cost to replace the vehicle with a new motor of the same specification and the market value payout from your insurance provider.
This type of cover is designed to protect you should the cost of a replacement vehicle increase. You can’t purchase this type of policy through Go.Compare currently.
These add-ons to a GAP insurance policy often come with no excess to pay if you make a claim:
Covers cosmetic damage to your car’s bodywork - things like chips from stones or small scratches on the paintwork
Pays for parts, labour, repairs or replacement of alloys or tyres that have suffered accidental or malicious damage, like punctures and tears, pothole damage or scrapes and dents from kerbs
Find out more
Find out more
Find out more
Find out more
Find out more
Find out more
Page last reviewed: 11 August 2023
Page reviewed by: Holly Thomas
[1]Gocompare.com introduces you to i-Wonder to provide GAP insurance quotes. Gocompare.com’s relationship with i-Wonder is limited to that of a business partnership, no common ownership or control rights exist between us