Do I need gap insurance?
Gap insurance can be bought for new or second-hand cars up to 10 years old. It's a common misconception that it's only used for financed cars.
Gap insurance is an additional cost on top of your car insurance policy. It's important to understand it, so you can decide whether you really need it.
You should consider gap insurance if:
Your car is on finance as your pay-out may not be enough to clear the debt. This could leave you paying for a car you no longer have.
You want a newer car if yours is written off or stolen. Gap insurance will cover the difference between what you originally paid for the car, and the current market value.
You'd like to guarantee you get the same amount that you originally paid in the event of a total loss.
Gap insurance is an additional cost on top of your car insurance policy. It's important to understand it, so you can decide whether you really need it.
You should consider gap insurance if:
Your car is on finance as your pay-out may not be enough to clear the debt. This could leave you paying for a car you no longer have.
You want a newer car if yours is written off or stolen. Gap insurance will cover the difference between what you originally paid for the car, and the current market value.
You'd like to guarantee you get the same amount that you originally paid in the event of a total loss.
You may not need gap insurance if:
You're happy to replace your car with a similar make and model rather than a brand-new car, if it is written off or stolen.
You have a used car and can afford to replace it with the market value paid by the insurer and your own funds if needed.
You have a fully comprehensive policy with ‘new for old’ included on your policy, and your car is less than 12 months old. Your insurer should offer ‘new car replacement’ in this case, which means you don't need gap insurance.
You have third party or third party, fire and theft insurance as having gap insurance only works with fully comprehensive cover.
You use your vehicle as a race car on a track or in a rally. Gap insurance will only cover you for road driving.
You're happy to replace your car with a similar make and model rather than a brand-new car, if it is written off or stolen.
You have a used car and can afford to replace it with the market value paid by the insurer and your own funds if needed.
You have a fully comprehensive policy with ‘new for old’ included on your policy, and your car is less than 12 months old. Your insurer should offer ‘new car replacement’ in this case, which means you don't need gap insurance.
You have third party or third party, fire and theft insurance as having gap insurance only works with fully comprehensive cover.
You use your vehicle as a race car on a track or in a rally. Gap insurance will only cover you for road driving.
Can I compare gap insurance?
We don't offer a comparison for gap insurance. Instead, we have a chosen provider who offers cover, which is powered by Direct Gap.
There's also a range of specialist providers who offer cover. So if you want to shop around and compare prices, you'll need to visit them separately.
Most car dealers will offer gap insurance policies when you buy a car. But independent research shows it's 50% cheaper to buy direct from an insurer, compared to a car dealership.
There's also a range of specialist providers who offer cover. So if you want to shop around and compare prices, you'll need to visit them separately.
Most car dealers will offer gap insurance policies when you buy a car. But independent research shows it's 50% cheaper to buy direct from an insurer, compared to a car dealership.
With Direct Gap, you get:
- No fees for paying by credit card, with monthly payment options available over 12 instalments (subject to status).
- A quick resolution - they aim to settle any claim within 10 days.
- No charge for amending your policy with new registration number or address details.
- Cover for all named drivers on your policy.
- £250 towards your motor insurance excess.
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Confused.com's Gap insurance is provided by Direct Gap who are a trading style of Motor Gap Limited. Motor Gap limited are authorised and regulated by the Financial Conduct Authority under firm reference number 516846 and is a company registered in England with registration number 07109212, whose registered office is at Hawkstone House, Valley Road, Hebden Bridge, West Yorkshire, HX7 7BL. Confused.com is an intermediary and receive commission from Motor Gap Limited which is a percentage of the commission received by Motor Gap Limited.