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Why GAP Insurance Matters More for EVs
If you’re buying a new 75 plate electric car, the case for GAP Insurance is stronger than ever.
EVs are already known to depreciate faster than petrol or diesel models, and heavy discounts (plus the new UK Government grant of up to £3,750 on some models) only add to the uncertainty of future values.
That makes choosing the correct type of GAP Insurance crucial. At Total Loss GAP, our 3-in-1 Invoice & Replacement GAP policy is designed to provide extra protection that many other Vehicle Replacement GAP policies don’t. 
How Our 3-in-1 GAP Cover Works
Our 3-in-1 Invoice & Replacement GAP policy protects you from your motor insurer’s total loss payout (in the event of theft or write-off) up to the highest of:
- Your outstanding finance settlement (if any)
- The original invoice price you paid
- The cost of an equivalent replacement model at the time you claim*
* If you bought the car brand new, this means the brand-new equivalent price at the time of the claim, not what it cost on the day you purchased it.
Worked Example: Audi Q4 E-Tron
Let’s look at a real-world example using the Audi Q4 E-Tron Black Edition, available on Autotrader in August 2025.
- RRP: £53,792
- Discounted purchase price: £39,792
- Two years later, the car is stolen and written off
- Motor insurer settlement: £25,000 (market value at 2 years old - for example)
- Finance outstanding: £29,000
- Current replacement cost (new): £50,000
Here’s how different GAP Insurance options would affect your settlement:
| Scenario | Total Settlement | Finance Cleared? | Surplus for New Car |
|---|---|---|---|
| No GAP Insurance | £25,000 (motor insurer only) | No (£4,000 shortfall) | £0 |
| Return to Invoice (RTI) GAP | £39,792 (original invoice) | Yes | £10,792 |
| Total Loss GAP 3-in-1 VRI | £50,000 (replacement cost) | Yes | £21,000 |
Why Total Loss GAP’s 3-in-1 Cover Is Different
Not all Vehicle Replacement GAP Insurance is the same. Many other providers only offer a 2-in-1 policy, covering:
- Outstanding finance, OR
- Replacement cost
The problem? If the replacement cost is lower than what you originally paid, you could lose out. For example, if EVs are more heavily discounted at the time you claim, your payout could fall short.
With Total Loss GAP’s 3-in-1 policy, you also have the invoice price safety net, ensuring you always get the best financial outcome.
Key Takeaways for EV Buyers
- EVs currently depreciate faster than petrol or diesel cars.
- Discounts and government grants could widen the gap between what you pay today and the cost of replacement in the future.
- A 3-in-1 Vehicle Replacement GAP policy could provide a much bigger settlement compared to RTI GAP.
- Total Loss GAP’s product is designed to give you the highest payout option available, something many competitors don’t provide.
Final Word
Buying an EV in 2025 often means receiving great discounts today, but steep depreciation can further reduce the value over time. The right GAP Insurance can protect you from being left out of pocket.
With Total Loss GAP’s 3-in-1 Vehicle Replacement GAP, you don’t just cover finance or invoice price; you also protect against the actual cost of replacing your car in the future.
Ready to see how affordable cover can be? Get a GAP Insurance Quote today.
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