GAP Insurance | Guaranteed Asset Protection (GAP)

GAP stands for Guaranteed Asset Protection (GAP). GAP Insurance covers the difference between your insurance offer at the point your car is written off or declared a total loss and the value of your car when you bought it. 

It will also cover any outstanding finance payments, plus – for some enhanced policies – any additional costs needed to get you back on the road with a car to the same specification as when it was purchased. 

Taking out Gap Insurance is important because cars depreciate over time and your motor insurer will value it in line with depreciation. If your car is written off, your motor insurance policy only covers your vehicle to its value at the point it is declared a total loss.

This can be substantially less than outstanding finance commitments, the price you paid for your car and the cost of getting back on the road in a car with a similar specification.