Does GAP Insurance Cover Electric Cars?

Yes, GAP Insurance can cover electric cars. It protects against depreciation, finance shortfalls, and replacement costs if your EV is written off or stolen. However, some policies may exclude vehicles with separately leased batteries, so always check your terms and conditions.

Why GAP is useful for EVs · Battery and exclusions · When GAP may not be needed · Related links

Driving an EV? GAP Insurance can protect your investment.

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Why GAP is useful for EVs

Depreciation: EVs can experience sharp depreciation, especially in early years.
Government Grants and manufacturer discounts can also impact depreciation rates.
Replacement cost: Prices for new EVs may rise, making Vehicle Replacement GAP valuable.
Finance agreements: PCP and HP deals are common with EVs — GAP helps if the insurer’s payout doesn’t clear the finance.

Battery and exclusions

Leased batteries: Some GAP policies exclude cover for vehicles where the battery is leased separately.
Check wording: Always confirm if the battery is included in the car’s insured value.
Integrated batteries: Most modern EVs with batteries included are covered normally.

When GAP may not be needed

Older EVs: With lower values, the benefit of GAP may be smaller.
Year one: Some insurers offer “new for old” replacement in the first year, reducing GAP’s relevance temporarily. You can look at Deferred GAP Insurance to start at the end of the first year, for up to a further four years of cover.

Tip: If you’re considering an EV, check both depreciation rates and battery coverage (if needed) before choosing GAP Insurance. See our EV GAP guide.