What is Guaranteed Asset Protection (GAP) Insurance

If your vehicle is stolen or written off, it is likely that your motor insurer will only pay the current market value for your vehicle.  This amount could be less than what is needed for you to purchase a similar vehicle or cover the outstanding amount left on a finance or lease agreement; as new vehicles lose their value very quickly.

GAP Insurance provides the difference between your motor insurers settlement (usually the market value of the vehicle) and what you paid for the vehicle in the event of a total loss (when your vehicle has been stolen or written off).

Types of GAP Insurance

There are different types of GAP Insurance, depending on how you paid for your vehicle and the number of vehicles you want to cover:

Cover Description
Finance GAP Finance GAP will pay the difference between your Insurers total loss settlement and the remaining amount on your finance agreement.
Lease GAP Lease GAP will pay the difference between your Insurers total loss settlement and the amount due to your lease company at the date of the total loss (also known as a Termination charge).
Purchase Price Protection GAP Purchase Price Protection GAP will pay the difference between your Insurers total loss settlement and the purchase price of the vehicle.
Top Up Fleet GAP Top Up Fleet GAP is available for fleets of 5 or more vehicles and will pay the difference between the motor insurers settlement figure and the outstanding amount owed to the finance or lease company OR 25% of the motor insurer’s total loss settlement figure, whichever calculation is greater.

What GAP Insurance doesn’t cover

  • Vehicles not covered on a comprehensive motor insurance policy for the duration of the insurance or vehicles covered on a motor trade policy

  • Vehicles purchased more than 90 days from the start of the policy

  • Vehicles over 8 years old (up to 10 years old on top up fleet GAP)

  • Vehicles registered outside of the United Kingdom

  • Vehicles which have not been provided by a VAT registered supplier

  • Vehicles used for daily or weekly rental purposes