GAP Insurance
Vehicle Replacement GAP Insurance

Vehicle Replacement GAP Insurance

Vehicle Replacement GAP insurance will cover the difference between your insurance payout and the cost of buying a brand-new, like-for-like replacement, if your car is declared a total loss
If you originally bought your car at a discounted price or it’s value has risen over time, consider Vehicle Replacement GAP insurance to be compensated for these cost increases in the event of a write-off
Use our quick and easy comparison tool to compare the leading Vehicle Replacement GAP insurance brands and get a quote today

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GAP Insurance All GAP insurance types

Return to Invoice Vehicles purchased from a dealer in the last few months

Return to Value Vehicles purchased privately or older vehicles owned a while

Vehicle Replacement New vehicles purchased recently from a dealer

Vehicle Finance Vehicles purchased on finance. Only covers outstanding charges

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Last updated on 25 November 2020.

Vehicle Replacement Gap Insurance FAQs

What is Vehicle Replacement GAP insurance?

If your car is declared a total loss, Vehicle Replacement GAP insurance will cover the difference between your car insurance payout and the cost of buying a brand-new, like-for-like replacement. So, rather than reimbursing you for the amount you paid for the car, it will cover the current value of a new model with the same specifications of the car you wrote off (or as near to it as possible).

For example, you could buy your vehicle for £10,000 but, at the time of write-off, a new replacement model could be worth £11,000. So, if your car insurance pays out £6,000, Vehicle Replacement GAP insurance would pay £5,000 so you receive £11,000 in total.

This means that, if you originally bought your car at a discounted price or the value of your car has risen over time, you will be compensated for these cost increases.

How does Vehicle Replacement GAP insurance work?

You will normally need to purchase Vehicle Replacement GAP insurance within a certain number of days of purchasing your new car. Then, if your car is stolen or written off, you can claim on your GAP insurance if you have successfully settled your main car insurance claim.

Vehicle Replacement GAP insurance will make up the shortfall between what your car insurer paid out (the current market value of your car) and the cost of buying a brand-new replacement. Most providers will use Glass’s Guide or another independent, third-party valuer to determine the value of the vehicle in question.

Does GAP insurance replace your vehicle?

Vehicle Replacement GAP insurance will cover the costs of replacing your car with one of the same model and specification. In some cases, a provider may replace your vehicle, but typically they will pay you a cash settlement to cover the cost of a brand-new replacement.

Other types of GAP insurance won’t replace your vehicle, but will recompense you in other ways.

How can I find the best Vehicle Replacement GAP insurance for me?

If, after assessing your options, you decide that you want Vehicle Replacement GAP insurance, you should look at different providers to find a policy that best meets your needs. The costs, cover, and terms of each provider will vary, so it is important to research and compare each one to see which one fits your circumstances.

Is Vehicle Replacement GAP insurance only available for new cars?

Vehicle Replacement GAP insurance is more commonly taken out for brand-new cars, but some providers may offer this cover for used cars, as long as they meet their age and mileage criteria. Whether you have a new or used car, this type of GAP insurance will cover the cost of getting a replacement car that is the same model, specification, and condition of the vehicle you originally purchased.

Which GAP insurance should I choose: Return to Invoice or Vehicle Replacement?

Whether you should choose Return to Invoice or Vehicle Replacement GAP insurance (or any other type of GAP insurance) will depend on your situation and your own personal preferences.

Return to Invoice policies will only cover what you originally paid for your car, and this might not be enough to buy a new replacement if the car’s value has risen. In contrast,

Vehicle Replacement will cover the full current cost of replacing your vehicle. However, because Vehicle Replacement GAP insurance accommodates these rising costs, it can often be more expensive than other types of GAP insurance. Whatever GAP insurance you decide to get, if any, it is important to fully research your options.