GAP Insurance
What is GAP Insurance?
GAP Insurance (Guaranteed Asset Protection) covers the difference between your car insurer’s payout and what you originally paid or still owe if your car is written off or stolen. It protects you from major depreciation losses caused by accidents, theft, fire, or flood.
Most cars under 8 years old, with fewer than 100,000 miles, under 3,500 kg, and worth below £75,000 are eligible if they meet UK specs and are unmodified. New or used cars bought outright, financed, or leased within the last six months can be covered.
MotorEasy offers simple, tailored GAP options to protect you during the years when your car loses value fastest. For more details, see our full GAP Insurance guide.
How does a GAP Insurance Policy Work?
GAP Insurance covers the difference between your insurer’s payout after a write-off and your car’s original value or outstanding finance. For example, if a £30,000 car is written off when it’s worth £10,000, GAP covers the £20,000 shortfall.
Your claim limit is shown in your quote or schedule. If you think your car may be written off, check your Policy Document in your MotorEasy account before accepting any insurer settlement.
What does GAP Insurance cover?
GAP Insurance covers you if your car is written off due to theft, accidents, fire, or water damage, bridging the gap between your insurer’s payout and what you originally paid or still owe on finance.
MotorEasy also covers factory- or dealer- fitted extras and includes up to £500 towards your insurance excess.
Types of GAP Insurance Policies Explained
At MotorEasy, we offer different GAP cover options to suit your situation:
| GAP insurance type | Who it's for | What it covers |
| Return to Invoice GAP | For new and used cars bought in the last 6 months. | The difference between your insurer’s payout and what you originally paid. Plus any outstanding balance on your finance or lease. |
| Return to Value GAP | For new and used cars bought more than 6 months ago, from a private seller. | The difference between what your insurer pays out and the amount you paid for your car. |
| Contract Hire / Lease | For new and used cars purchased on a contract hire / lease agreement. | Any outstanding balance on your finance or lease agreement. Plus Early Termination Charges and it covers Initial Rental / Deposit |
Not sure which is right for you? Our team can help explain the differences so you’re sure to have the best option for your needs.
GAP Insurance vs. Dealer Policies: What’s the Difference?
Dealership GAP is often the most expensive option. Buying direct is usually better value.
MotorEasy GAP Insurance is typically more affordable, more flexible, and backed by a Defaqto 5-star rating.
It’s always worth comparing prices- MotorEasy quotes take just a few quick steps online.
GAP Insurance Limitations & Exclusions
While details vary by policy, some exclusions apply to all GAP cover. Your policy may be void if:
- You don’t have comprehensive car insurance
- The vehicle isn’t declared a write-off
- You’re not the registered keeper or named finance holder
- The write-off happens during racing, off-road driving, speed testing, or similar activities
How much does GAP insurance cost?
GAP Insurance usually ranges from £100- £300 for several years of cover. The exact price depends on factors like your car’s make, value, age, and mileage, as well as the type of cover you choose and the policyholder’s details.
When To Buy GAP Insurance
The best time to buy GAP Insurance is as soon as you get your car. Most policies let you purchase cover on the day of purchase or within 180 days. Buying early gives you the most protection while depreciation is highest.
Is GAP Insurance worth it?
It depends on your situation.
GAP Insurance is worth considering if:
- You’ve bought a new or nearly new car (big early depreciation)
- You’re on finance or lease
- You couldn’t afford the shortfall after a write-off
You may not need it if:
- Your insurer includes new-car replacement in the first year or two
- Your car is older and depreciates more slowly
Things to note:
- Dealer GAP can cost up to 3× more than buying direct
- Dealers must give a 2-day cooling-off period
- Always check the policy limits and exclusions
Is GAP insurance good for leased vehicles?
Yes. GAP Insurance is particularly valuable for leased cars because it covers any remaining lease payments if the vehicle is written off or stolen. Lease agreements can leave you with a large outstanding balance, and GAP helps protect you from that cost. It offers extra peace of mind on long-term finance or lease contracts, and we strongly recommend it for new or recently leased vehicles.
Which manufacturers can I get GAP Insurance for?
MotorEasy offers GAP Insurance for a wide range of manufacturers, from Audi to VW. Get a quote to see the full list of makes and models covered.
Why choose MotorEasy?
If your car is written off, your insurer pays only its current value—often far less than what you paid. With vehicles losing up to 60% of their value in the first few years, this can leave a big shortfall. MotorEasy covers that difference, ensuring you’re not left out of pocket.
How to Make a GAP Insurance Claim
Making a claim with MotorEasy is simple:
- Log into your MotorEasy Account
- Scroll down to the ‘My Purchased Products’ section
- Click ‘Report a fault’
- Upload required documents - such as service invoices or recovery receipts
Common FAQ's
What is the difference between GAP and car insurance?
Car insurance pays your car’s current market value. GAP Insurance covers the difference between that payout and what you paid or still owe, protecting you from any shortfall after a write-off.
Do I need GAP insurance on a finance car?
You don't have to, but it’s strongly recommended. If your financed car is written off, your insurer may pay less than what you still owe—GAP Insurance covers that shortfall. It’s useful for any car, but especially when you’re still making payments.
Can I get GAP insurance at any time?
Yes, but it’s best to buy it as soon as you get your car. Waiting means more depreciation and less cover, and policies won’t apply if the car is already written off or stolen.
Does GAP insurance pay the full amount?
Not always. GAP Insurance covers the difference between your insurer’s payout and what you paid or still owe, up to your policy limit. It may not cover extras like your excess or additional fees, so always check your policy details.
What is shortfall insurance?
Shortfall insurance is another name for GAP Insurance. It covers the difference between your car insurer’s payout and the amount your vehicle was worth or what you still owe if it’s written off or stolen.
