Do I need gap insurance?
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'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?
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.
- 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.