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Return to InvoiceVehicles purchased from a dealer in the last few months
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Vehicle FinanceVehicles purchased on finance. Only covers outstanding charges
Vehicle Finance GAP Insurance FAQ
What is Vehicle Finance GAP insurance?
Vehicle Finance GAP insurance will clear any outstanding debt that you owe to your car finance provider should you write off your car. Because of depreciation and because your car insurer will only cover the current market value of your vehicle, your standard car insurance payout is unlikely to be enough to clear your outstanding finance payments. Vehicle Finance GAP insurance policy would make up this shortfall and pay off your remaining finance.
For example, if you owe £14,000 on your car finance and your car insurance pays out £7,000, your GAP insurer would pay off the remaining £7,000.
How does Vehicle Finance GAP insurance work?
If your financed car gets stolen or written off, you should contact your GAP insurer as well as claiming on your standard car insurance. If your main insurer confirms your car is a total loss and pays your claim, then your GAP insurer should also pay out.
As your car insurance claim is unlikely to cover your remaining finance payments, Vehicle Finance GAP insurance will make up the difference and settle your outstanding finance. Remember that this type of GAP insurance will only clear your finance payments; it won’t leave you with a surplus to put towards buying a replacement car.
How can I compare Vehicle Finance GAP insurance on a comparison site?
To compare Vehicle Finance GAP insurance providers and the different elements of their individual policies, you can look at comparison tables. They list the key features of each policy, although it is worth researching further into the exclusions and terms to make sure you get the right cover for you.
How can I find the best Vehicle Finance GAP insurance for me?
To find the best Vehicle Finance GAP insurance policy for your circumstances, you need to consider your vehicle’s specifications, your financial situation, and the terms of your finance deal. This will help you when you come to research the different GAP insurance options, and can help you to find a policy that caters to your needs.
When can I buy Vehicle Finance GAP insurance?
This may depend on the provider. Some providers will require you to purchase Vehicle Finance GAP insurance within a certain number of days of taking out your car finance agreement, while others will allow you to purchase the policy at any point during your finance agreement. In both situations, the insurance will clear any outstanding finance you owe at the time your car is declared a total loss.
Will Vehicle Finance GAP insurance cover any negative equity?
If you have carried over any negative equity from a previous car finance agreement, then this may not be covered by a standard Vehicle Finance GAP insurance policy. However, there may be more specialist policies that can offer cover for this situation.
ALA GAP Insurance
GAP insurance broker that was established in 1990.Read more
Click4Gap GAP Insurance
GAP insurance specialist providing policies since 2004.Read more
MotorEasy GAP Insurance
GAP insurance for new and used cars.Read more
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