container image
Need help? Calling from a mobile please call 0151 647 7556
Lines open: Mon-Fri 9am-6pm | Bank Holiday & Sat 10am-2pm

What is Gap Insurance?

Gap Insurance is an insurance policy that runs alongside your own fully comprehensive motor insurance and is activated when your vehicle is written off.

It is classed as a supplementary insurance. What this means is that there is no legal obligation for you to buy it. Yes, naturally we think it is a good idea, we are a gap insurance provider after all. However, ultimately it is your choice. When all is said and done, gap insurance can help protect your financial commitment if your vehicle is written off. Conversely, without gap insurance, you will have to deal with any financial implications.

It is your money, your car and your choice.

So what does Gap Insurance do and why should you think about buying a policy?

To understand the benefits of gap insurance, you must first understand what happens when and if your car is written off. A comment we often hear is that surely this is what your motor insurance policy is for? Well, yes and no. Your motor insurance is compulsory and is legally required to be able to use public roads. It protects you from driving on the roads and any damage that you may cause in the process. To an extent, it also covers you in the event of your vehicle being written off in so much that you will be offered a fair value for your vehicle on the day of loss.

1. You Buy a Car

Buying any car at any time can cost a lot of money. For most of us, this may mean using a big chunk of savings or even taking on additional finance. 

2. Your car is written off 

Your motor insurance company are legally obliged to offer you a fair market value for your car on the day it was written off. 

3. Insurance Settlement

With the average car usage potentially losing up to 50% in just three years. Any settlement you receive could be substantially less than you paid or even how much you need to be able to clear your finance.

So what happens now?

In the best-case scenario, you have enough money from the settlement to replace the car without using your savings. Worst-case scenario, you could be left with no car and have to pay for something you no longer have.

Gap insurance can help, 

We can not stop you from being in an accident or your car being stolen. Still, it can ensure that should the worst ever happen, at least the financial worry is taken care of after the distress experienced.

There are three main levels of gap insurance

Finance / Contract - Lease Hire Gap Insurance.

This policy pays the difference between your motor insurance companies settlement and the amount you have outstanding on your lease/finance agreement. This could be made up of different elements, including differences in market value, early termination and even a proportion of forward rentals. 

Combined Return to Invoice Gap Insurance.

Pays the difference between your insurance companies settlement and the higher of either the invoice price you paid or the amount outstanding on your finance agreement. Simply put, you get the original invoice price back; from this, you can clear any finance if necessary and then the balance is yours to use as you wish.

Combined Vehicle Replacement Insurance.

Pays the difference between your insurance companies settlement. And the higher of either the amount outstanding on finance, the original invoice price you paid or the replacement cost of another vehicle the same as yours was on the first day you drove home. Please remember that settlement is always in a cash format.

No Idea which level of gap insurance you need?

Which level of gap insurance is most appropriate for you will depend not only on the age and mileage of your car. But also how you paid for it, what you intend to use it for and ultimately, what level of protection you want.

Tyre Damage Insurance


Mr Steven Totman

Combined Vehicle Replacement


Mr Steven Totman

Combined Vehicle Replacement

"Excellent site explained things really clearly and concise."

Mrs Joanna Cullimore

Combined Vehicle Replacement


Mrs Josephine Piers

Motorbike Return to Invoice


Mr Tim O'Connell

Taxi Vehicle Replacement


Mr Kevin Heaney

Driving School Return to Invoice


Miss Emma Moss

Alloy Wheel Insurance

"Great price"

Mr Kevin Todd

Excess Protection

"This was a renewal of an existing policy; there was no "renewal" button to make the process quicker, i.e. I had to enter all my details, personal and car, instead of you getting my existing policy up, and me then making any changes!"

Mr William Kendall Hall

Scratch & Dent Insurance



Combined Return to Invoice

"Very easy to set up and very competitive rates! "

Mr Andrew Yeates

Run Flat Tyre & Alloy Insurance

"Very polite and couldn't have been more helpful when I rang just to see what the service was like before signing up. The signing up itself was very easy to complete."

Mr Tim Pickthall

Click the quote button and our automated system will ask about you and your car. You will then be offered levels of cover that you may be able to benefit from. You can enter your payment details and pay online. You will receive your documents within minutes.

Or why not call 0800 195 4926 and speak to a team member? They will need to know a little bit about your car. Then, they will be able to help explain your options and, where possible, offer the most appropriate levels of cover and the best deals we have.