Can I Get GAP Insurance with PCP Finance?

Yes. Most drivers on PCP can get GAP Insurance. GAP Insurance (either Return to Invoice, or Vehicle Replacement GAP) can work with a PCP if the motor insurer writes off the vehicle. GAP can help top up your motor insurer's settlement to help clear and finance (including your balloon payment) and provide a deposit for a replacement car.

How GAP works with PCP · Which GAP types suit PCP · What to check on your PCP · Related links

On a PCP and want protection?

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PCP, or Personal Contract Purchase, is one of the most popular forms of retail finance available for retail car buyers in the UK in 2025. The finance deal normally involves you putting down a deposit (can be cash and/or value from a part exchange), paying monthly payments over a fixed term and then having three options at the end of the deal. You can pay off the final 'balloon' payment (known as the Guaranteed Future Value - set from the start), part exchange for a new car (using any equity in value, above the balloon payment, as a deposit), or hand the car back and walk away.

How GAP works with PCP

Motor insurer payout: Based on market value at the time of loss, not what you first paid, or what may still be owed on your PCP finance agreement.
GAP policy payout: Tops up to your invoice price, clears the finance balance, or covers a like-for-like replacement, depending on the policy type.
Balloon considerations: The optional final payment is part of your PCP. It forms part of your finance settlement, and GAP policies can account for it.

Which GAP types suit PCP

Return to Invoice (RTI): Bridges the gap between the motor insurer payout and the original invoice price.
Vehicle Replacement (VRI): Aims to cover the cost of a new equivalent car if prices have risen.
Finance GAP: Focuses on clearing the outstanding finance if the payout is not enough.....usually, the most basic option. (not offered by Total Loss GAP)

What to check on your PCP

Term length: Align the GAP term with your planned change date. Many PCPs change in year 3.
Balloon and limits: Confirm how the policy treats the final payment and what the claim limit is.
New for old: If your motor insurer replaces the car in year one, consider a deferred GAP start.

Tip: A PCP Finance agreement is, basically, a hire purchase agreement with a deferred final payment. The safety net of that Guaranteed Future Value only comes at the end. If the vehicle is written off or stolen before that point, you could still be left with a shortfall to cover. This is where GAP Insurance can help.