Car Written Off After a Fire? How GAP Insurance Can Help

A family car parked on an autumn evening with Bonfire Night fireworks in the distance

Bonfire Night means fireworks, hot food and a long evening around the flames. It's also a good moment to ask a question most people only think about after something has gone wrong: if a fire damages your car, does GAP insurance help?

Under the right circumstances, yes. GAP insurance can cover an eligible shortfall after a fire, but only if your motor insurer accepts the claim and settles it as a total loss, and your GAP policy's conditions are met.

Here's how it works.

What happens if a fire damages your car?

Your motor insurer handles the claim. Depending on the damage, it may pay for repairs or declare the car a total loss, usually called a write-off.

If the car is written off, the settlement is normally based on its market value just before the incident. That figure can fall short of what you paid, or short of what you still owe on finance, or what it may cost to replace the vehicle.

However, if you have GAP Insurance, then the picture can change.

How GAP insurance fits in

GAP sits alongside your motor policy. After a qualifying total loss, it can cover some or all of the gap between the insurer's settlement and the amount your policy protects.

What it pays depends on the cover you hold. A policy may protect the original purchase price, an eligible outstanding finance balance, or the cost of a qualifying replacement vehicle. Read the wording to see which applies to you.

A real-life GAP Insurance example

A Total Loss GAP customer bought a Hyundai Tucson in January 2025 for £23,300. They then bought a 5-year Return to Invoice GAP policy from us to protect that investment.

In September 2026 the vehicle was involved in an incident that saw the Hyundai catch fire. The damage led the motor insurer to write the vehicle off.

The motor insurer provided a market value settlement, and the GAP Insurance topped that up with a further £4,220.33.

This allowed the policyholder to get their original investment back in full.

What if the car can be repaired?

GAP is for total losses. If your insurer repairs the car rather than writing it off, there is generally no GAP claim. The repair claim stays with your motor insurer.

What if fireworks cause the fire?

The process is the same. Your motor insurer assesses the incident under your motor policy first. If it accepts the claim and treats the car as a total loss, you can then claim under your GAP policy.

Don't assume every fireworks incident will qualify. The cause and circumstances are still measured against the policy terms.

How your excess can widen the shortfall

Your motor excess is deducted from the settlement, so it can make the gap bigger. Some GAP policies contribute towards it after a total loss or theft.

On recently bought policies, Helvetia-underwritten GAP cover pays up to £1,000 of excess on a total loss or theft claim.

Hiscox-underwritten cover pays up to £500 on a total loss. Hiscox cover also allows for up to £300 annually for standard excess deduction claims on your motor insurer, where the vehicle is not declared a write-off. If the damage is only minor, this is an additional benefit.

Figures correct as at October 2026. See Our new Motor Excess Contribution cover.

What to do if your car is written off

Report the incident to your motor insurer and tell your GAP provider promptly. Check your GAP policy's claims instructions before accepting any motor settlement, as the provider may need to review the offer first. Keep your purchase paperwork, finance agreement and motor claim documents to hand.

Understanding how the two policies work together

Motor insurance and GAP insurance do different jobs. When a fire leads to a write-off claim, GAP can help with the eligible shortfall.

It's worth reading your policy wording before the fireworks start, not after.

Want to see what each policy covers? Visit our Vehicle Replacement, Return to Invoice, Lease and Contract Hire GAP pages, or contact our team if you'd like help working out where you stand.

By Mark Griffiths, Founding Director, Aequitas Automotive Limited (trading as Total Loss GAP). Aequitas is FCA-regulated and has sold GAP insurance direct to consumers since 2010.