GAP insurance

We don't offer Gap insurance comparison - here are some companies[1] offering quotes[2]

  • As one of the UK's largest car insurance providers, Admiral like to make sure their customers have all bases covered. That's why they provide Gap insurance, to cover financial shortfall in the event your car is written off or stolen. Admiral cover a variety of different makes and models, providing they are less than five years old.

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  • Worried where you’ll turn in the event of a write-off? MotorEasy can help. Its GAP insurance policies cover both new and used cars whether bought outright or on finance. Pay a fraction of the prices dealers charge.

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  • Since 1990 ALA has been dedicated to providing top quality financial products within the motor industry, to both the personal and corporate client. As an FCA authorised company, ALA is able to offer specialist insurance policies, including GAP insurance, developed with its extensive knowledge of the market in which it operates.

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What is Gap insurance?

Guaranteed asset protection (Gap) insurance pays the shortfall between your car's value when you bought it and its market value if it's stolen or written off.

Gap insurance helps to pay off outstanding finance on the car, or puts a lump sum towards a brand new car.

The policy costs significantly less than your car insurance, usually around £100, and lasts for three years.

How much is Gap insurance?

GAP policies from dealerships tend to be more expensive than other policies, so it's best to shop around and compare online to find the best deal. And as GAP insurance can no longer be sold to you when you're buying the car, you have time to find the best policy to suit your needs.

As with all insurance policies, check to see exactly what you are covered for. Check for any exclusions, and how the market value at the start of the policy is calculated.

Also if the policy can be transferred if you sell your car and buy another, and if you can cancel.

If you pay for GAP insurance in full at the start of an agreement, but exit the agreement early, some insurers will refund you the proportion of gap cover you no longer need.

Types of Gap insurance

Gap insurance makes sure you’re not out of pocket if your car is a write-off, but there are a few variations in the types of policies on offer.

Return to value cover (RTV)

This is for cars bought privately or from a dealer, but not within the past three months.

It covers the difference between the insurance valuation at write-off and the value of the car when you opened the Gap policy.

Return to invoice cover (RTI)

RTI is for cars bought from a dealer within the last three months.

In the event of a write-off, the payout is the difference between the valuation and the original purchase invoice price.

Vehicle replacement insurance (VRI)

New car? This one is for you.

The payout covers the difference between the valuation and the cost of buying a brand-new car, even if that price has risen.

If you have fully comprehensive car insurance, read the small print. Some insurers offer a new replacement car service if the car is under 12 months old, so you may not need gap insurance.


Finance Gap insurance pays the difference between the vehicle's market value at loss and whatever amount is still outstanding on your finance agreement.

After an accident, contact both your main car insurance provider and your Gap provider as soon as possible.

Do I need Gap insurance?

If losing value is a concern, you have a finance deal left to settle, or if you want to make sure you go back to driving a new car, then Gap insurance is the answer.

For example, if you bought a car on finance for £20,000 and it decpreciated by 60% in 3 years, the car would be worth £8,000. If the car was written off, your insurer would pay the market value of £8,000, so you're £12,000 out of pocket. GAP insurance would cover that £12,000 so you can get back to driving a brand new car.

Before taking out a Gap policy, make sure you can afford the price of the premium on top of your regular insurance cover and any possible monthly loan or leasing fees.

If you have a Personal Contract Hire (PCH) lease, you don't own the car, but you've agreed to pay the finance for a fixed term. We can't help you get gap insurance for leased cars, however there are contract hire gap policies to help you cover the shortfall if you write off the car.

Gap insurance exclusions

Watch out for these common exclusions on your Gap insurance:

  1. Your Gap insurance will only pay out if you have fully comprehensive car insurance

  2. Your car must be confirmed as a total write-off, and you will only receive payment after your claim has been successful

  3. It will not pay out if your car was written off as a result of drink or drug driving

  4. Or if someone else was driving your vehicle without a valid driving licence

  5. It won’t pay the difference if you underestimated the value of your vehicle when taking out Gap insurance

  6. It won’t cover any non-standard modifications you make to the car after purchasing it

  7. A gap insurer may not provide cover if you pay over a certain annual value for your car insurance - read the small print closely

All you need to know

[1]We do not offer a full comparison service on Gap insurance at but instead have provided links to some companies that offer Gap insurance. These companies are not listed in an order that indicates that one is better than another but are instead ordered in line with our commercial arrangement with each one. Please remember, as different companies offer different policies, it is up to you to choose the one that best suits your needs. introduces you to Admiral, MotorEasy and ALA to provide Gap insurance quotes. All providers are authorised and regulated by the Financial Conduct Authority.’s relationship with Admiral, MotorEasy and ALA is limited to that of a business partnership, no common ownership or control rights exist between us.

[2] introduces you to Admiral, MotorEasy and ALA to provide Gap insurance quotes. All providers are authorised and regulated by the Financial Conduct Authority.’s relationship with Admiral, MotorEasy and ALA is limited to that of a business partnership, no common ownership or control rights exist between us

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