Does the Age or Mileage of My Car Affect the Cost of GAP Insurance?

Yes, the age and mileage of your car can affect both the cost and availability of GAP Insurance. Older or higher-mileage vehicles may be limited on cover periods or pay higher premiums, because they may be considered more likely to be declared a total loss.

Why age matters · Why mileage matters · Impact on cost and cover · Related links

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Why age matters

Newer cars are eligible for the longest cover periods (up to 5 years).
Older cars may only qualify for shorter terms or Agreed Value GAP Insurance (depending on length of ownership, purchase method, etc).
Depreciation slows as cars age, but older vehicles are statistically more likely to be written off as the value of a repair may equal, or exceed, the already depreciated value of the vehicle.

Why mileage matters

Higher mileage cars often depreciate faster, reducing their value more quickly than a lower mileage car.
Most GAP policies set a maximum mileage limit at the start of cover (e.g. 80,000 or 100,000 miles, for example).
Some providers may also restrict annual mileage allowances.

Impact on cost and cover

Older or higher-mileage vehicles may have slightly higher premiums because they are more likely to trigger a claim.
Cover terms are often shorter (e.g. capped at 4 years instead of 5).
If your vehicle is too old or has too many miles, you may need an Agreed Value GAP policy or a Top Up GAP Insurance instead.

Total Loss GAP Tip: GAP Insurance may not be as valuable on an older car as it has already depreciated in value. Consider how much it could impact you if the car is written off. If you think GAP Insurance is worth it then call Total Loss GAP and we will tell you what we can do.