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0800 195 4926

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Why should you buy Gap Insurance?


When you buy or lease a new car, it is easy to forget the hidden extras you may have to pay for.

  • Your motor insurance company may charge a fee.
  • There may be a change in how much your motor insurance costs.
  • You may have to pay for a private plate transfer.


These additional costs are before you think about adding any Gap insurance, tyre insurance or scratch and dent protection.


So why should you buy a gap insurance policy, and why is it the most essential supplementary cover you can buy?

Contract Hire Gap insurance Quote for your BMW     Return to Invoice Gap Insurance Quote for your BMW     Vehicle Replacement Gap insurance Quote for your BMW

Gap insurance is not a new concept; it has a proven track record and has been around in one form or another since the 1980s.


Guaranteed asset protection, or Gap Insurance for short, started in America as a form of protection for lease vehicles. However, cash and hire purchase owners quickly recognised the benefits and wanted the opportunity to protect themselves.


Over time, more inclusive and feature-packed gap insurance policies came onto the market. Initially only offered when buying a new car, the UK online market grew with the onset and popularisation of the internet and cover is now available for new and used cars and LCV's.


Why do people buy Gap Insurance?


Policyholders buy cover because vehicles lose value over time. The speed and rate at which they lose value can vary, but they can sometimes lose up to 60% of their original value in just three years.


Without gap insurance, a vehicle write-off could leave you with only the market value settlement from your motor insurance company. This might not be enough to replace your car or clear any outstanding finances, leading to a significant financial gap.


This is precisely where the need for Gap insurance arises. Your policy will pay the Gap left behind by your motor insurance company's settlement.  


Which level of Gap Insurance is best for you and what does Gap insurance cover?


There are three main types of Gap insurance. Which one is best for you will depend on what you want to happen when your vehicle is written off. After all, having a write-off can be bad enough, so your policy must do precisely what you expect when you expect it to. Before buying gap insurance, we ask that you consider what is important to you.


  • Did you source your vehicle using a form of contract hire or lease hire?
  • Do you want to ensure you are not left paying for a new car you no longer have, or do you want to protect the invoice price you paid?
  • Do you want a real belt-and-braces policy that covers all the risks, including the replacement cost of another vehicle?
  • How long are you planning on keeping your vehicle?



Today, you can type gap insurance into Google, and you will be swamped by a range of gap insurance providers, all of whom claim to be the best.

  • They have the best Gap insurance prices.
  • Their Gap insurance policies have the best terms and conditions.
  • Their Gap Insurance policies have the highest payout rates.
  • Some even offer cashback and discounts.


So why should you choose Total Loss as your Gap Insurance provider?

  • We don't offer cashback or discount codes, and we don't pay for any affiliations or recommendations. Instead, the money we save doing that we pass directly to you. This means that no matter if you are not confident enough to call us and haggle or are not internet savvy, you can have peace of mind knowing that you are paying the best price we can offer. This may not be popular, but we feel it is a better way to do business as we can not discriminate.


  • We are not just here for the good times but for the long haul. With a trading history since 2010 and hundreds of thousands of happy policyholders, we are a company you can trust. We are here for you from the moment you get a quote or buy gap insurance to when you need to change your address, transfer your policy, or make a claim. At every step, we are here to support you. We are real people and understand that to Google and buy gap insurance online is not something that the vast majority of us do daily. So we wanted all of our reviews to be by real people who have had a real experience with us. Historically, we used a company called Ekomi, and now we use Feefo. We use these review systems because, unlike other review platforms, we do not handle the reviews. Unlike some review platforms, we can not manipulate them in any way. We can not amend, delete, hide or alter any review. We may not always agree with everything a customer says, but good, bad, and ugly, they are there forever.


  • We have all the legal and regulatory accreditations you would expect. We are registered with the Information Commissioners Office ( ICO ). We are fully regulated by the Financial Conduct Authority (FCA). Our policies are backed by the Financial Services Compensation Scheme ( FSCS ), and we are British Insurance Brokers Association members. ( BIBA)


  • We have worked for over a decade to fine-tune and tweak our policies. We have worked with our underwriters and used policyholder feedback to make them as inclusive as possible. Yes, there are terms and conditions, and every policy in the land will have them, but we have tried to limit ours to a minimum. As you can imagine, we think our policies are just about as good as they get; we could not market or provide them if we did not know they were. 


Please see the policy documents below for a full list of terms, conditions, and additional benefits.


How does gap Insurance work?


There are three different types of gap insurance, which will protect you in slightly different ways.


Contract Hire Gap- Lease Hire Gap Insurance from 

Finance Gap Insurance / Lease Gap Insurance from Total Loss pays the difference between your insurance company's fair value settlement and the amount outstanding on your lease or contract hire agreement.

IPID for BMW Total Loss Contract Hire policies purchased from June 24Total Loss IPID From June 2024            T&Cs for BMW Total Loss Contract Hire policies purchased from June 24TLG Contract Hire Gap insurance policy From June 2024


Combined Return to Invoice Gap Insurance 

Combined Return to Invoice Gap Insurance from TLG - Pays the difference between your insurance company market value settlement and the higher of either 

  1. the amount outstanding on finance ( this does not include a loan where your vehicle is not guaranteed)
  2. the original invoice price you paid. 

BMW Total Loss RTI IPID from June 24Total Loss IPID From June 2024            BMW Total Loss RTI Terms from June 24TLG Return to Invoice Gap insurance policy From June 2024


Vehicle Replacement Gap Insurance from 

VRI Gap insurance cover from Total Loss-  pays the difference between your vehicle's fully comprehensive car insurance settlement at the point of loss and the higher of either.

  1. The amount outstanding on the finance agreement (this does not include a bank loan where your vehicle is not mentioned)  
  2. The original invoice price you paid. 
  3. The replacement cost of another vehicle, the same as yours, was on the day you bought it; if that model is no longer available, settlement is based on the superseding model. Without a superseding model, your settlement would be based on the invoice plus 10%. 

IPID for BMW Total Loss Vehicle Replacement Policies purchased from June 24Total Loss IPID From June 2024            T&Cs for BMW Total Loss Vehicle Replacement Policies purchased from June 24Total Loss VRI Gap insurance policy From June 2024

N.B  Unfortunately at present, we do not offer Negative Equity Gap insurance.


How do you get a Gap insurance quote?


The quickest way to get a gap insurance quote is to call 0151 647 7556 or freephone 0800 195 4926 or click for an automated quotation. We will need to know some information about you and your vehicle and then we can highlight levels of cover for you to consider. We can say that prices for a three-year lease hire gap insurance start from under £50; however, this could be misleading as depending upon the purchase price of your vehicle, the type of gap insurance you choose and the length of cover, it could cost more.


Is gap insurance worth it?


We are a gap insurance provider, so yes, we think gap insurance is worthwhile. But when all is said and done, it's your choice, your vehicle, and your money, and you would have to cope with any financial complications caused by your vehicle being written off and not having cover. 


We can also offer other policies to help protect your new car.

Alloy Wheel Insurance     Smart Care Insurance     Excess insurance

Tyre and Alloy Wheel insurance     Scratch and Dent insurance     Tyre insurance