Can I Transfer GAP Insurance to a New Car?

If you've already taken out a GAP Insurance policy but have now changed your car, you might be wondering what happens next.

Can you transfer the policy over?

Or do you need to cancel it and start again?

Let's clear it up.

Quick Answer

Yes, some GAP Insurance providers allow you to transfer your policy to a new vehicle. The rules vary, but typically, you'll need to meet certain conditions, and an admin fee may be applicable.

Please check the policy terms to confirm.

Why People Ask This

It's common for drivers to change cars before their GAP cover ends. Whether it's an upgrade, a switch in finance deals, or a new lease, nobody wants to waste money on a policy that no longer fits their needs.

What many don't realise is that not all GAP Insurance policies are the same. (See the Different Types of GAP Insurance)

You may have bought a more expensive car, so the risk increases.
You may have switched from a PCP to a Contract Hire Lease.

In either case, your current GAP Insurance policy may not be suitable for your new vehicle.

So, unless your policy allows transfers, your cover may end with the vehicle's disposal.

Is GAP Insurance Transferable?

Most standalone GAP Insurance policies are arranged for a specific car, invoice value and purchase method or agreement. That said, many providers do allow a one-time transfer if certain eligibility conditions are met.

Here's what's usually required:

You haven't claimed on the policy.
The new car meets the eligibility criteria (typically defined by age, mileage, price, and vehicle usage).
You're transferring to a like-for-like situation, for example, from one PCP deal to another, or from one lease to another.
You provide documentation, such as proof of the sale or return of the original car, and a new invoice.

At Total Loss GAP, we typically allow one free transfer per policy if:

The new vehicle purchase is eligible for cover.
The transfer is processed within 30 days of receiving the new vehicle. No cover is provided until the transfer has been completed. (See When is the best time to buy GAP Insurance?)
The insurer agrees to the transfer.

What documents may you need for a transfer?

To process a transfer, you may need:

Your original policy number
Proof that the first vehicle has been sold or returned
Invoice or finance agreement for the new car
Vehicle details (registration, mileage, value, etc.)
Confirmation that the new vehicle meets the eligibility rules

Transfers are often quick to arrange, especially if done over the phone or by email.

What If You Can't Transfer?

If your new vehicle doesn't qualify, or you're too far into the policy term, your provider may not allow a transfer. In this case, you usually have two options:

Cancel the policy - Depending on your provider and how long the policy has been active, you may receive a refund (often on a pro-rata basis). Some brokers allow cancellation without fees in the first 30 days. After that, admin charges may apply.
Buy a new policy - You can start fresh with a new GAP Insurance policy tailored to the details of your new car. If you buy from a specialist provider, you'll still likely pay far less than what a dealer might quote.

Transfer vs New Policy – What's Better?

Option/Pros/Cons

Transfer Policy

Pro - Keeps the value already paid

Con - Limited to one transfer, admin required

New Policy

Pro - Tailored to your new vehicle

Con - It may cost more, especially if no refund on the first policy

What We Offer at Total Loss GAP

At Total Loss GAP, we make the process simple:

One free transfer per policy
Must be requested before the new car is delivered
Our team checks eligibility for you.
Quick turnaround via phone or email
No fuss, no pressure

We want your cover to fit your current situation. That includes helping you adjust it if your circumstances change.

Final Thought

If you're switching to a new car and already have GAP Insurance, don't assume it's lost. Contact your provider and inquire about a transfer. You can carry over your cover and avoid unnecessary costs.

At Total Loss GAP, we help our customers do this every day.