In the event of a total loss claim, the motor insurer will pay the current market value of a vehicle, not the purchase price.

A claim under a GAP policy will pay the difference between what the policyholder receives from the motor insurer and what they originally paid to purchase the vehicle (this can include vehicles purchased under a finance agreement).

GAP insurance cover details

What’s covered
  • There are several variations of GAP insurance available:
    • Vehicle replacement insurance,
    • Return to invoice, Retail price protection or Purchase price protection,
    • Contract hire GAP,
    • Finance GAP,
    • Valuation GAP,
    • Combination GAP.
What’s not covered
  • In respect of total loss which is not subject of an indemnity under the accidental damage, fire or theft section of the motor insurance policy or which occurs while the vehicle is being driven or used by a person not covered under the motor insurance policy.
  • In respect of any total loss by an accident when the driver of the vehicle is intoxicated by alcohol or under the influence of drugs not prescribed by a registered medical practitioner or drugs prescribed by a registered medical practitioner where a warning against driving has been given.
  • Any vehicle which is not covered by a motor insurance policy for the full duration of the period of the insurance.
  • If the insured person takes the option under their motor insurance policy to have the vehicle replaced new for old following the agreed total loss of the vehicle hereunder (the balance of the cover hereunder will on request be transferred to the replacement vehicle).
  • If the total loss occurs outside Great Britain, Northern Ireland, Isle of Man, Channel Islands, European Union or any other county for which International Motor Insurance Card (Green Card) is issued.
  • In respect of any excess deducted under the motor insurance policy above £250 (as applicable).
Optional cover
  • Choose various price bands depending on target market.
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Explore the GAP insurance market

Market information
  • There are more than 37 million vehicles on the UK roads.1
  • According to a study by, the average new car depreciates 11% as soon as it leaves the car dealer’s lot. After a year, it’s worth 20% less than new.2
  • In 2014 Britain’s auto industry turned over a record £69.5 billion.3

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