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 over 6,000 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.

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

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. 

 Rated 4.9/5 from over 6,000 verified customer reviews

Eligible insurance policies benefit from FSCS protection

Proud members of BIBA for over a decade

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. 

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

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.

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