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GAP Insurance 101 - Your questions answered quickly

 

Welcome to our 'quick fire' GAP Insurance question and answer hub. For more in-depth detail answers, please click the link in each question. 

 

1. Policy Basics

  • How long does GAP Insurance last? - GAP Insurance usually lasts between 1 and 5 years. Some policies end earlier if your car is sold, written off or if your finance ends. The length you choose should match your ownership or finance term. 

  • Should I get GAP Insurance? - You may want GAP Insurance if your car is new or financed, as it protects against depreciation after a total loss. If you own an older or low-value car, GAP may not be as worthwhile. The decision depends on your car’s age, finance, and risk tolerance.

  • Does GAP Insurance affect my car insurance premium? - No. GAP Insurance is a separate policy and does not affect your motor insurance premium. It runs alongside your car insurance and only becomes relevant if your vehicle is written off or stolen.

  • Can GAP Insurance save me money in the long run? - Yes, GAP Insurance can save you thousands if your car is written off or stolen, by covering the shortfall between your motor insurer’s payout and what you first paid or still owe. If your car depreciates slowly or is of low value, the savings may be less.

  • What factors affect the price of GAP Insurance? - The cost of GAP Insurance depends on several factors, including your car’s value, age, mileage, the type of cover, claim limit, and the length of the policy. Dealer-sold GAP policies are often more expensive than those sold online.

2. Eligibility & Vehicles

  • Can I get GAP Insurance on a used car bought privately? - Yes, if you buy a used car privately, you may be able to take out an Agreed Value GAP policy (also known as Return to Value GAP). Instead of using the invoice price, cover is based on the car’s current market value at the time you arrange the policy.

  • Does GAP Insurance cover electric cars? - Yes, GAP Insurance can cover electric cars, protecting against depreciation, finance shortfalls, and rising replacement costs. Some policies may exclude batteries leased separately, so always check the terms.

  • Does GAP Insurance cover motorcycles? - Most GAP Insurance policies are designed for cars and may not cover motorcycles. Some providers exclude bikes due to higher risk, or provide specialist cover. 

  • Are imported cars eligible for GAP Insurance? - Some imported cars can qualify for GAP Insurance, but many providers have restrictions or exclude them entirely. Obtaining a standard valuation and motor insurance for an imported vehicle can be challenging, which is one of the main reasons they may be excluded from GAP Insurance cover. 

  • Does GAP Insurance cover modified cars (performance, wraps, alloys)? - Most GAP Insurance policies only cover factory-fitted or dealer-installed options. Modifications made after purchase, like performance upgrades, wraps, or custom alloys, are usually excluded. Always check the policy wording.

  • Can I get GAP Insurance for vans or commercial vehicles? - Yes, many GAP Insurance providers offer cover for vans and light commercial vehicles, but there are restrictions. Eligibility often depends on the vehicle’s weight, how it is used, and whether it falls within age and mileage limits.

  • Does GAP Insurance work for company cars? - Yes, GAP Insurance can often cover company cars, but it depends on ownership. If the car is purchased, leased or financed through the business, you may be eligible for GAP Insurance. Privately owned cars used for business may also qualify.

  • Can high-mileage cars be covered by GAP Insurance? - Yes, some high-mileage cars can be covered by GAP Insurance, but restrictions apply. Most providers set an upper limit of around 80,000 miles at the time the policy begins. Some providers can go higher. Cars above this limit are usually excluded because they depreciate faster and carry higher risks.

  • Can Classic Cars be covered by GAP Insurance? - Classic cars are usually not eligible for GAP Insurance, as they don’t depreciate like modern cars. Learn why GAP isn’t suitable and what alternatives exist.

  • Can young drivers get GAP Insurance? - Yes, GAP Insurance is available for young drivers. They normally need to be at least 18 and hold a full UK driving licence. Provisional drivers may not be covered.

3. Finance & Ownership

4. Claims & Exclusions

  • What counts as a total loss for GAP Insurance? - A total loss is when your motor insurer declares your vehicle a write-off (following an accident, fire, flood, etc), or it’s stolen and not recovered, or recovered and uneconomic to repair. This is the trigger for you to make a GAP Insurance claim.

  • What happens if my car is stolen but later recovered? - GAP Insurance only pays if your stolen car is declared a total loss. If it’s recovered and repairable, your motor insurer may repair it, and GAP won’t apply.

  • Does GAP Insurance cover fire or flood damage? - Yes. GAP Insurance applies if your car is written off due to fire, flood, or other insured damage. It only pays once your motor insurer declares the car a total loss.

  • What happens if my insurer pays less than market value? - If your motor insurer pays you less than the true market value, your GAP Insurance settlement can still be based on that figure. Providers have different rules and processes to follow, but many GAP Insurance providers can help ensure there is no 'gap' in your payment. However, there are some circumstances where your GAP Insurance won't help. 

  • What happens if my insurer pays more than expected? - If your insurer pays more than expected, GAP Insurance will only make up any remaining shortfall. If their payout already meets or exceeds your invoice price or finance balance, no GAP payment is due.

  • Does GAP Insurance cover courtesy or hire cars? - No. GAP Insurance only applies to the insured vehicle if it is written off or stolen. Courtesy or hire cars provided by your motor insurer or a third party are not covered.

  • Does GAP Insurance cover third-party motor insurance? - No. GAP Insurance requires your car to be insured under a fully comprehensive motor policy. Third-party, fire & theft, or third-party only policies are not eligible.

  • What documents do I need to make a GAP Insurance claim?

  • How long do GAP Insurance claims usually take to settle?

5. Costs & Value

  • Why is GAP Insurance from a dealer usually more expensive?

  • Are there admin or transfer fees on GAP Insurance?

  • Do GAP Insurance policies have claim limits?

  • What’s the difference between a 1, 2, 3, 4, and 5 year GAP policy?

  • Does the age or mileage of my car affect the cost of GAP Insurance?

  • Does GAP Insurance cost more for electric cars?

6. Policy Management

  • Can I cancel GAP Insurance at any time?

  • Do I get a refund if I cancel GAP Insurance?

  • Can I switch GAP Insurance providers mid-term?

  • Can I transfer GAP Insurance to a new car if I change vehicles?

  • Can I renew GAP Insurance when my policy ends?

  • What happens if I sell my car while still covered by GAP Insurance?

  • How do number plate changes (private plates) affect GAP Insurance?

  • What happens if I move house during my GAP policy?

7. Special Situations

  • Does GAP Insurance cover my voluntary excess?

  • Does GAP Insurance cover factory-fit options and dealer extras?

  • Does GAP Insurance cover accessories fitted after purchase?

  • Does GAP Insurance apply if I drive abroad?

  • Does GAP Insurance cover track days or off-road use?

  • Does GAP Insurance apply if my car is used for business travel?

  • Can GAP Insurance cover hire-purchase agreements on older cars?

  • Does GAP Insurance cover short-term or temporary insurance policies?