What is GAP Insurance?

GAP Insurance helps cover the financial shortfall if your car is written off or stolen and your motor insurer pays less than the amount you originally paid, owe on finance, or need to replace the vehicle.

Because cars can depreciate quickly, many drivers face a significant financial shortfall after a total-loss claim.

At Total Loss GAP, we offer a range of cover options from A-rated insurers, including:

• Return to Invoice GAP
• Vehicle Replacement GAP
• Lease & Contract Hire GAP

The real-life claim example opposite shows how GAP Insurance can help cover the difference between your motor insurer settlement and the original vehicle value, as Return to Invoice GAP would.

Real Life GAP Insurance claim

Why buy GAP Insurance from Total Loss GAP?

• 5 Star rated features and cover not found on comparison websites. No hidden fees, paid placements, ratings or third-party 'recommendations'.

• Directly authorised and regulated by the FCA in the UK (FRN 821163) and covered by the FSCS, safe and protected.

• Flexible cover, including deferred start dates (if you have 'new car replacement' cover).

• UK-based customer service and claims support, real people when you need them.

• Rated 'Exceptional' by Feefo with a customer service score of 4.9 out of 5 from verified customers. 

• Proven history, a 99% claims acceptance rate with an average claim settlement of £8,079.19 in 2025.

Featured and discussed on MoneySavingExpert, Which?, What Car?, TrustPilot, The Car Expert, Honest John, PistonHeads, Bimmerforums and Auto Express.

What does GAP Insurance cover you for?

GAP Insurance is designed to protect you in situations where your motor insurer’s payout does not fully cover your financial position. This typically includes:

- Returning you to your original purchase price if your car has depreciated significantly

- Clearing an outstanding finance or lease balance if you owe more than the insurer pays

- Helping you replace your vehicle like-for-like rather than settling for a lower-value replacement

The exact cover depends on the type of GAP Insurance you choose, such as Return to Invoice, Vehicle Replacement or Contract Hire/Lease GAP.

Is GAP Insurance worth it?

For many drivers, yes. Cars lose value quickly, and if yours is written off or stolen, your motor insurer will usually pay only the current market value.

GAP Insurance can protect you from a significant financial shortfall, particularly if you have finance or a lease, or want to replace your vehicle like-for-like.

Learn more about how GAP Insurance works, the different policy types, and common questions in our guides and FAQs

Cover backed by a panel of 'A' rated insurers

Additional reassurance from insurers with independently assessed strong financial ratings

GAP cover for vehicles valued between £5,000 and £150,000

No long lists of 'excluded' vehicles

Up to 4-year terms available

UK-based customer service and claims support

Experienced UK-based support teams

We are here to help!

Flexible payment options available

Including 3 or 6 months at 0%

Or between 12 and 48 months on a funded agreement

Defer the start date of your GAP policy with a new car

If you have 'new car replacement' with your car insurance

Only pay for the GAP protection you actually need

Free GAP Insurance transfer

Changing your vehicle?

One free policy transfer included

When can I claim on GAP Insurance?

A GAP Insurance claim can begin once your motor insurer declares your vehicle a total loss following an accident, theft, fire or flood. 

Your motor insurer must first settle your claim based on the market value of the vehicle. GAP Insurance can then help cover the remaining shortfall.

Is GAP Insurance right for you?

Yes, for many drivers, GAP Insurance can help protect against depreciation if your car is written off or stolen. 

Cars can lose value quickly, particularly newer and electric vehicles, potentially leaving a shortfall between the insurer payout and what you originally paid

How much does GAP Insurance cost?

At Total Loss GAP, policies start from £77.89 for 2 years' cover, with options available between 2, 3 and up to 4 year terms.

The cost depends on the value of your vehicle, the type of GAP Insurance you select, and the length of cover you choose.

When does GAP Insurance not pay out?

GAP Insurance won't cover if your motor insurer does not declare the vehicle a total loss, and pay out, or if exclusions apply. 

Common exclusions include negative equity carried over from a previous finance agreement and extras not shown on the sales invoice. 

More Questions on GAP Insurance?

Compare GAP Insurance cover, learn about the benefits of purchasing online, and explore answers to common questions about claims, cancellations and eligibility.

Our GAP Insurance knowledge hub provides guides and FAQs. 

From October 2025, all new GAP Insurance policies from Total Loss GAP will be backed only by ‘A’ rated insurers.

Every GAP policy is a promise to pay if you need to claim. The strength of that promise depends on the insurer’s financial stability.

‘A’ rated insurers have been independently assessed by global credit agencies for their ability to meet claims, even in tough times. Unrated insurers haven’t, and are generally seen as higher risk and more likely to fail.

That’s why we now only work with 'A' rated insurers for our new Guaranteed Asset Protection (GAP) Insurance products. If you ever need to claim, you deserve the reassurance that your insurer will be there to pay, in full and without delay.

If you are comparing GAP Insurance providers, then checking the credit rating of their underwriter may be a good place to start.

Get a GAP Insurance quote from an 'A' rated Insurer from Total Loss GAP today. 

Payment options online

• Pay in full - by Visa, Visa Debit, Mastercard, American Express, Apple Pay, Google Pay or PayPal. 

• Pay Monthly* - PayPal Pay-in-3 or PayPal Credit - simply choose the PayPal option at checkout.

Payment options over the phone

• Pay in full - by Visa, Visa Debit, Mastercard, Mastercard Debit, American Express, Bank Transfer 

• Pay Monthly* - **May 2026 offer** 0% over 6 months with no credit check; longer-term monthly plans up to 48 months. 

How Does GAP Insurance Work?

When a car is written off or stolen, your motor insurer typically pays only the current market value, not the amount you paid. With vehicles depreciating quickly, this can leave a large financial shortfall.

Here’s where GAP Insurance steps in:

1. Your motor insurer pays the market value.

2. Your GAP policy covers the shortfall - up to the original invoice price, your outstanding finance, or the cost of a replacement vehicle (depending on the policy). See how GAP Insurance claims are calculated

3. You’re not left out of pocket - you can clear finance or put the full amount towards a new car.

Example: You bought your car for £25,000. Two years later, it’s stolen, and your insurer values it at £16,000. GAP Insurance covers the missing £9,000, so you get back your original purchase price in full.

Our Key GAP Insurance Statistics - Updated March 2026

• A brand-new car can lose between 15% and 35% in value in the first year alone.

• A used car typically loses 10% to 15% of its value each year.

• Motor claims hit a record £11.7 billion in 2024, with the average claim rising to £5,300.

• Our average GAP Insurance claim since 2019 is £5,937.49.

• In 2025, our average GAP Insurance payout rose to £8,079.19.

• We have seen over £6.5 million paid out in GAP Insurance claims to our customers from January 2019 to March 2026.

Get an instant GAP Insurance quote online in less than 60 seconds, or call our friendly, award-winning team to learn more.

Tyre Insurance

Tyre Insurance covers repair or replacement costs following accidental or malicious tyre damage.

Tyre & Alloy Wheel Cover

Cover for tyre damage and alloy wheel repairs following accidental or cosmetic damage.

Alloy Wheel Cover

Cover for alloy wheel repairs following accidental or cosmetic wheel damage.

SMARTCare Cosmetic Cover

Cover for alloy wheel and minor bodywork cosmetic repairs following accidental damage.

Motor Excess Insurance

Recover your motor insurance excess costs following an at-fault or non-fault insurance claim.

Financial Services Compensation Scheme (FSCS)

Any Gap policy or supplementary policy you buy is backed by the (FSCS) Financial Ombudsman Service

British Insurance Brokers Association (BIBA)

We are proud to have been members of the British Insurance Brokers Association (BIBA) for over a decade

Independently 4.9 / 5-Star Rated Reviews 

Our policies have been independently rated and verified 5 stars for the last 5 years running

Policies Covered by Financial Ombudsman Service

If you are unhappy with any aspect of your policy you may have the right to refer the matter to the Financial Ombudsman Service (T&C's Apply)

Safe and Secure Online Security

Our systems are independently stress tested, scanned and monitored to protect our and your online security

All Gap Insurance Claims are paid in Cash / Bank Transfer. 

We never replace your vehicle. We do not know what led you to claim your Gap Insurance cover. You might want to rush out and source the exact vehicle again; you may not be able to drive or be here. So, for this reason, we think it is really important that you are given a cash settlement so you can decide how, where, and on what your money is spent.

You can purchase GAP Insurance for up to 4 years for vehicles up to £150,000

We are proud to be one of the very few, if not the only, GAP insurance providers who can cover your vehicle for up to 4 years. This means that, unlike some hybrid levels of GAP Insurance, which change as the years go on, ours will perform the same on day one as it will in 3 years, 11 months, and 28 days. No dilution of cover, no change of terms and conditions. 

Contract Hire Gap Insurance Policies with a selection of Deposit Protections.

We offer more choices. You can choose a standard contract hire policy or protection for your initial rental/deposit. This means that as well as having the benefits of Contract and Lease GAP Insurance we will reimburse you your initial rental as shown on your agreement, You decide what is best for you. (You have the option to increase this to £3000)

No claim limits on GAP Insurance for vehicles up to £75,000

We don't know when and if your vehicle will be written off and we can not guarantee what it will be worth. Equally, we have not got any idea what the cost of any replacement vehicle will cost. We don't think anyone can know with any real degree of certainty. As such we do not have any claim limit for vehicles up to £75,000 for all VRI and RTI GAP Insurance.