Does GAP Insurance Affect My Car Insurance Premium?

No. GAP Insurance is a separate policy and does not affect your motor insurance premium. It runs alongside your car insurance and only becomes relevant if your vehicle is written off or stolen.

How GAP works with car insurance · Effect on premiums · Benefits of separate cover · Related links

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How GAP Insurance works with car insurance

Motor insurer: Settles based on the car’s market value at the time of loss. This may be far less than you originally paid, have outstanding on finance or what it may require to replace the vehicle.
GAP policy: Covers the shortfall between the insurer payout and either the invoice price, finance owed, or replacement cost (depending on the type of GAP Insurance you have).
Both policies are separate but work together in the event of a write-off.

Does GAP Insurance affect premiums?

Taking out GAP Insurance does not change your car insurance premium. Motor Insurers calculate premiums using factors like your age, driving history, claims record, and vehicle type. GAP Insurance is arranged separately and has no bearing on those calculations.

Benefits of separate cover

Flexibility: You can buy GAP Insurance independently without changing your car insurer.
No impact on no-claims: Using GAP Insurance does not affect your motor no-claims discount.
Extra protection: You have two layers of cover working together for a total loss situation.

Tip: GAP Insurance won’t reduce your motor insurance premium, but it can save you thousands in a write-off. See our beginner’s guide.