GAP Insurance
Car written off? Insurance might not pay the full amount. ALA GAP Insurance covers the shortfall.
Recommended by Regit
Whether it's an accident a fire a flood
GAP cover helps you get back on track
If your car is written off or stolen, your insurer will usually pay its current market value, not what you originally paid or still owe on finance.
That gap can leave you thousands of pounds out of pocket when replacing your car. GAP insurance is designed to cover that shortfall, helping protect you from unexpected financial loss.
Cars can lose a significant amount of their value in the first few years, which means the risk is often higher than people expect. GAP cover helps reduce that risk and gives extra peace of mind if the worst happens.
Is GAP Insurance Worth It?
These statistics are from research ALA conducted with YouGov in December 2024
Got a new car?
A brand new car can lose up to 35% of its value within the first year and up to 70% over three years. A ten year-old car will usually be worth only 20% of its original price, giving you an idea of the financial impact a write-off could have. Don't get caught out – protect your investment with ALA GAP insurance cover today.
Will I need GAP Insurance?
Whether you'll need GAP insurance depends on your car's depreciation and your financial buffer. With 34% of UK drivers experiencing a vehicle write-off (ALA/YouGov 2024), a standard total loss settlement often falls short of the original purchase price. GAP insurance covers this 'gap,' which is vital for the 49% of motorists who would otherwise struggle to afford a replacement vehicle after an accident or theft.
Choose the right GAP Insurance
GAP Insurance is not just for new cars, explore the range of GAP insurance products
Back to Invoice Plus
Covers the gap between your insurance payout and the price you paid for your car, or the finance still outstanding.
Suitable for new and used cars up to 10 years old, owned outright or on finance.
Available if the car was bought recently.
Vehicle Replacement Plus
Covers the gap between your insurance payout and the cost of replacing your car with a similar one.
Suitable for new and used cars up to 7 years old, owned outright or on finance.
Available for cars with lower mileage that were bought recently.
Contract Hire GAP Insurance
Covers the gap between your insurance payout and the remaining lease payments if your car is written off or stolen.
Suitable for new and used cars on a contract hire agreement.
Also helps cover part of your initial rental payment.
Agreed Value GAP
Covers the difference between your insurance payout and the agreed value of your car.
Suitable for used cars that don't qualify for other GAP types.
Often used for cars bought privately or with higher age or mileage.
Frequently Asked Questions
What is GAP insurance?
GAP (Guaranteed Asset Protection) insurance covers the financial shortfall if your car is written off or stolen. Your standard car insurance pays out the current market value, which may be less than what you originally paid or still owe on finance. GAP insurance bridges this gap.
Who should consider GAP insurance?
GAP insurance is particularly valuable if you: bought a new car (which depreciates rapidly), have an outstanding finance agreement, are in negative equity, or own a model known for fast depreciation.
How much does GAP insurance cost?
Pricing depends on your vehicle's value, cover level, and term length. Use our quote calculator for an accurate price.
What types of GAP insurance are available?
There are several types of GAP insurance to suit different needs:
- Back to Invoice - covers the difference between market value and original purchase price
- Vehicle Replacement - covers the cost of replacing your vehicle
- Contract Hire - covers shortfalls on leased vehicles plus deposits
- Agreed Value - protects against depreciation to an agreed amount
Does GAP insurance cover negative equity?
Yes, GAP insurance covers negative equity where your outstanding debt exceeds the vehicle's market value. However, negative equity transferred from a previous finance agreement is typically excluded.
Do I need GAP insurance if I have fully comprehensive cover?
Comprehensive insurance only pays out your car's current market value at the time of a claim - not what you paid for it. Some policies include new-for-old replacement in the first year, but most don't. GAP insurance provides protection beyond this.
When might a GAP insurance claim be rejected?
Claims may be rejected if: you breach the policy terms, make a fraudulent claim, lack proper documentation, refuse a new-for-old replacement offered by your insurer, or don't have comprehensive car insurance in place.
What doesn't GAP insurance cover?
GAP insurance typically excludes: vehicles without comprehensive insurance, negative equity from previous finance agreements, vehicles over 10 years old or exceeding £125,000, motorcycles, left-hand drive vehicles, those with motor trade insurance, and vehicles used for hire/reward, rallying, or competition. See the full policy terms for complete details.
About This Insurance
GAP insurance calculations shown on this page are provided by ALA Insurance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA) as an insurance intermediary.
ALA Insurance Ltd acts as an insurance broker and is not an insurer. GAP insurance policies are underwritten by Financial & Legal Ltd. The identity of the insurer underwriting your policy will be confirmed before you purchase.
Motoring.co.uk Ltd (t/a Regit) is acting as an introducer only and does not provide insurance advice or arrange insurance.
This is a non-advised sale. No advice or recommendation has been given, and no assessment has been made as to whether this policy is suitable for your individual needs or circumstances.
ALA Insurance Ltd receives commission from the insurer for arranging this policy. Motoring.co.uk Ltd (t/a Regit) receives a tenancy fee for advertising ALA Insurance Ltd's services. These payments do not affect the price you pay.
Any figures or examples shown are illustrative only and are intended to help explain how GAP insurance works. They do not constitute a recommendation. Actual claim outcomes will depend on the terms of your GAP policy and the settlement provided by your comprehensive motor insurer.
GAP insurance is subject to eligibility criteria, policy limits, exclusions, and full terms and conditions, which will be provided before you complete your purchase.
You will have a 14-day cooling-off period after purchase, during which you may cancel the policy for a full refund provided no claim has been made.
GAP insurance policies underwritten by FCA-authorised insurers may be protected by the Financial Services Compensation Scheme (FSCS), subject to eligibility.