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Guaranteed Asset Protection (GAP)
If your vehicle is stolen or written off GAP can make the difference. Ask us about GAP Insurance before you buy from a dealer.
What is GAP Insurance?
GAP Insurance is designed to protect against financial shortfall in the event your vehicle is involved in a total loss claim and the amount the motor insurers pay is either not enough to allow you to replace the vehicle with a similar vehicle, or to pay off any outstanding finance payments.
All policies are available for cars, light vans, commercial vehicles up to 44t GVW, motor bikes, motor homes or vehicles used as taxi’s or for driving school tuition. To meet your requirements we offer multiple types of policy as described below.
Finance & Lease GAP Insurance
Finance GAP is designed for people who have financed their vehicle on Hire Purchase (HP), Personal Contract Purchase (PCP) or with a Bank Loan, whilst Lease GAP is for people who are obtaining their vehicle on Contract Hire or Lease.
If, following an accident, fire or theft your motor insurers decide your vehicle is a write off, despite the fact that you no longer have the vehicle you will still be liable for the amount outstanding to the Finance company, or to settle a contract with a lease/contract hire provider.
Vehicles depreciate in value at an alarming rate. If your vehicle is written off the insurers will only pay what they consider to be the market value for the vehicle, which will this be less than what you originally paid for it.
This can cause a considerable amount of stress when you are without a vehicle and having to find additional funds.
If the Motor Insurance payout is not enough to clear any outstanding balance owing, Finance/Lease GAP Insurance will pay the difference, up to a selectable limit ranging from £5,000 to £20,000 and a maximum of £10,000 for Driving Instructors.
Cover is available for periods of up to 60 months for finance or lease agreements. Cover is also available for individuals and companies and on vehicles up to £100,000 value.
Purchase Price Protection GAP (PPP GAP)
If the vehicle is declared a
Total Loss, PPP GAP (also known as Return/Back to Invoice GAP) refunds the difference between the purchase price of the vehicle and the comprehensive motor insurer’s valuation of the vehicle.
For example if you paid £20,000 for your vehicle, and after two years it is declared a Total Loss, and the insurance company values the vehicle at £12,000, PPP will refund the difference of £8,000.
PPP is available on cars with a retail price of up to £100,000 with benefits of up to £25,000 on new and used vehicles for periods up to three years.
Period of InsuranceCover under all policies lasts until whichever of the following is earliest:
- the expiry date of the policy;
- the date the Insured Vehicle is sold or transferred to a new owner; or
- the date a claim is paid for the Insured Vehicle under this policy.
- 60 months of the start date of the policy;
- the scheduled expiry of the Finance Agreement; or
- the date the Insured has paid all sums due under the Finance Agreement, or ceases to be indebted for any other reason
- The vehicle must be under 8 years of age and registered in the United Kingdom. Second cars can be accepted;
- The vehicle must be a car or light van up to 3.5t GVW;
- You must hold a current driving licence;
- Your vehicle must be covered by a UK comprehensive motor insurance policy and shown in Glass’s Guide;
- Your vehicle must not be manufactured by Aston Martin, Bentley, Ferrari, Lotus, Maserati, Rolls Royce, TVR or any American make of vehicle unless manufactured as a right hand drive and purchased from an authorised UK distributor and not imported directly;
- Your vehicle must not be an emergency vehicle, taxi, bus, truck, HGV, motorcycle, invalid carrier.
- Lease GAP is available if your vehicle is on Contract Hire or Lease only;
- Purchase Price Protection is available whether you have paid cash or financed your vehicle;
- Finance GAP is available if your vehicle is on Finance only, this includes PCP, HP and Bank Loans;
Frequently Asked QuestionsOpen all | Close all
- What is a ‘Total Loss’ ?
- When an insured person has claimed under their comprehensive and/or fire and theft motor insurance policy and the claim has been settled, with the vehicle forfeited and a total loss payment made.
- Is GAP cover available for Goods Carrying Vehicles?
- Yes, you can cover GCVs up to 3.5 tons for both Finance and PPP.
- Are imported vehicles covered ?
- GAP Insurance is only available for imported vehicles when they are factory fitted right hand drive and purchased from a UK distributor authorised by the manufacturer of the vehicle. Cover does not apply for ‘Grey’ or ‘Parallel’ Imports.
- Can you give cover for Driving Instructors’ Vehicles ?
- Yes, for both Finance/Lease GAP and PPP. However, PPP is limited to 12 or 24 months cover options.
- Does the cover extend to Couriers or vehicles used for Private Hire?
- No. The policy stipulates that vehicles used for these purposes are excluded from cover.
- How long will GAP Insurance cover last?
- Finance/Lease GAP is available for up to 60 months with PPP GAP available up to 36 months, unless it is a Driving Instructor’s vehicle, which is limited to a maximum of 24 months.
- How long after the purchase of the Insured vehicle can the GAP Insurance be bought?
- You must purchase Finance or Lease GAP within 3 months of the Finance or Contract Hire/Lease start date. PPP Gap can be purchased within 6 months of the vehicle purchase date
- Can the PPP GAP Insurance still be purchased when the car is bought for cash (ie. no finance involved)?
- Yes. The policy covers the difference between the amount the motor insurance policy pays and how much was originally paid for the car within the maximum claim limit.
- Can GAP Insurance be taken out if the vehicle is purchased from a Private Seller?
- Finance/Lease GAP only covers vehicles purchased from a dealer supported by a Finance Agreement. However, PPP GAP Insurance will also cover vehicles purchased privately as the cover is for the difference between the total loss settlement made by the Motor Insurance company and the original invoice price of the vehicle. A receipt for the transaction will be required to validate any claim.
- Is the date of purchase of the vehicle the date the vehicle was ordered or the date it was collected?
- The date of purchase is the date the vehicle was collected by the insured person.
- What is the ‘Claim Limit’?
- This is maximum amount the GAP Insurance will pay in the event of a claim. Please refer the insured to the policy schedule for the limit on the policy.
- Must the Insured person also be the Policyholder of the Motor Insurance policy?
- No, not at all. The only stipulation is the GAP Insurance Policy must be in the name of the “Registered Keeper” (that’s the name on the V5/log book for the car).
- Would the GAP Insurance pay out if the driver was under the influence of alcohol?
- There might be cover under the policy, but only if the driver was within the legal limit for alcohol consumption.
- Can You give me an example of how GAP Insurance works?
- Vehicle Cost £22,000 - Insurance settlement £12,700 = PPP GAP benefit £9,300.
Vehicle Cost £7,500 - Insurance settlement £4,600 = PPP GAP benefit £2,900.
Contact us about GAP Insurance - 020 8444 1040
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