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Why choosing the right GAP Insurance - and provider - can save you thousands
It’s not always obvious which GAP Insurance to pick. Taking a few minutes to understand the options, rather than just choosing the cheapest, can make a significant difference when you make a claim.
Here’s a recent Total Loss GAP claim that shows how the right cover works in the real world.
When the right GAP Insurance really counts 
Vehicle: Toyota Land Cruiser (ex-demonstrator)
Purchased: November 2020 · Invoice price paid: £39,500 · Official list price (at the time): £37,644
Claim date: May 2025 (theft) · Mileage at claim: 17,000
Motor insurer settlement (market value): £32,500
Market context (2025): new Land Cruiser models selling for £70,000+; six-month ex-demonstrators close to that figure.
Two key aspects to consider, and remember, in this example and claim:
- The customer paid a 'premium' for the car at the time. It was a rare car with specifications that they really wanted. Therefore, they were happy to spend a bit more for the right car.
- The cost of the equivalent replacement Toyota Land Cruiser increased substantially over the four and a half years of ownership and coverage.
The key choice of GAP Insurance cover
The customer chose a 5-year 3-in-1 Vehicle Replacement GAP Insurance policy from Total Loss GAP. The policy compares three amounts and settles to the highest relevant figure, paid to the customer:
- any outstanding finance settlement
- the original invoice price (here, £39,500)
- the cost of an equivalent replacement (same model/spec, typically up to six months old)
There are no market-value caps applied to the original purchase price, and the benefit is paid to the customer (not restricted to a nominated dealer).
GAP settlement paid: £35,945
Total received: £32,500 (insurer) + £35,945 (GAP) = £68,445 real claim total settlement
This put the customer in a position to replace the vehicle at today’s prices.
What other policy types might have done
Return to Invoice (RTI)
RTI tops up the insurer’s payout to the original invoice price. In this case, that would total £39,500 - still around £30,000 short of a near-new equivalent in 2025.
“Basic” Vehicle Replacement GAP
Not all Vehicle Replacement policies are the same. Common terms that can reduce what you receive include:
- Dealer-only payment - benefit paid to a nominated dealer rather than directly to you.
- Replacement requirement - if you don’t replace through an approved route, the payout may revert to invoice price.
- Market value clauses - using Glass’s Guide value as a baseline instead of your insurer’s settlement, or capping your original purchase price to market value at the time (penalising buyers who paid a premium for rarity/spec).
Side-by-side outcome
| Cover type | Total settlement | Outcome |
|---|---|---|
| Motor insurer only | £32,500 | Market value payout - far short of near-new replacement cost (~£70,000) |
| Return to Invoice (RTI) GAP | £39,500 | Back to invoice price - still ~£30,000 short |
| Basic Vehicle Replacement GAP | £39,500 to <£68,445 | May cap at invoice and/or apply market-value limits; may pay dealer only |
| Total Loss GAP 3-in-1 Vehicle Replacement GAP | £68,445 | Cash to customer bridged the gap towards an equivalent replacement |
Final thought
RTI would have left this customer well short of being able to replace the Toyota with another six-month-old example, by some margin. Some Vehicle Replacement policies could have fallen back to invoice price or applied market-value limits. The 3-in-1 Vehicle Replacement GAP from Total Loss GAP considers the real-world replacement cost and pays accordingly - exactly what you want when prices rise and supply is tight.
Important: Claim example based on a Toyota Land Cruiser stolen in May 2025. Figures reflect the customer’s invoice price, insurer settlement and GAP payout at the time. Eligibility, terms, vehicle age/mileage and policy limits apply. Replacement availability and pricing vary by dealer. For product details, see the GAP Insurance hub and the relevant policy documents.
Next: Read more about our GAP Insurance options or speak to us if you’re unsure which cover suits your car and finance.