What is GAP Insurance?

GAP stands for Guaranteed Asset Protection. You may also see it referred to as Return to Invoice, Vehicle Replacement, Finance GAP or Shortfall Insurance. These all describe types of Gap Insurance.

In simple terms, Gap Insurance helps protect you against the effects of depreciation.

If your vehicle is declared a total loss (often called a write-off) your motor insurer will usually pay out the current market value at the time of the claim. This is often less than what you originally paid, or less than the amount outstanding on finance.

This can leave you with a shortfall, either needing to cover the remaining finance or finding that the payout is not enough to replace your vehicle.

 

How Gap Insurance helps

Gap Insurance is designed to cover that difference.

Depending on the policy you choose, it can help:

  • Clear any outstanding finance or lease balance
  • Return you to your original invoice price
  • Help you afford a replacement vehicle of a similar specification

This can reduce the financial impact if your vehicle is written off.

Find out more about the different types of Gap Insurance.

 

Why people consider Gap Insurance

  • Vehicles can lose value quickly, especially in the first few years
  • Insurance settlements are based on market value at the time of loss
  • Finance agreements still need to be settled, even if the vehicle is written off

Gap Insurance provides an additional layer of financial protection in these situations.

 

A simple example

If you bought a car for £21,000 and it is written off a few years later, your insurer may settle based on its reduced market value, let's say £15,000.

Without Gap Insurance, you would need to cover the difference yourself to purchase a vehicle of the same value (in our example, that's £6,000)!

With the appropriate cover in place, the shortfall could be covered, helping you move forward without an unexpected cost.

 

Why choose Sura Gap Insurance?

  • Rated 5 stars by our customers
  • UK-based customer service
  • Over 15 years experience specialising in Gap Insurance
  • Free vehicle transfers on Return to Invoice and Vehicle Replacement policies
  • Full refund available within 30 days
  • No claim limits on vehicles valued up to £50,000
  • Covers all drivers named on your motor insurance
  • No limits on mileage during your cover period