Does GAP Insurance Cover Theft?

Can GAP Insurance Cover Me if My Car Is Stolen?

Yes, GAP Insurance can cover you if your car is stolen, but only if it's declared a total loss and your motor insurer pays out first.

GAP Insurance is designed to protect you against the financial shortfall between what your car insurer pays and what you originally paid for the car, still owe on finance, or would need to replace the vehicle.

Theft is one of the most common reasons for a GAP claim.

Let's examine how theft works with GAP cover, including when it applies and when it doesn't, as well as what you need to know in the event of the worst happening.

First Things First: Your Car Must Be Written Off by Your Insurer

GAP Insurance doesn't replace your standard motor insurance. It sits alongside it.

For GAP to kick in after a theft, your motor insurance provider needs to declare the car a total loss. That usually happens when:

The vehicle is stolen and not recovered
Or it's recovered but too severely damaged to repair

If your insurer agrees and pays you the market value of the car, that's when your GAP policy comes into play.

What Does GAP Insurance Cover After a Theft?

Depending on your policy type, GAP Insurance can cover the difference between your insurer's market value payout and:

The original invoice price (Return to Invoice)
The cost of a replacement car (Vehicle Replacement)
The outstanding lease or finance (Contract Hire)
The agreed retail value on the day you took the policy out (Agreed Value GAP)

If your car is stolen early in your agreement, especially with PCP or lease, the 'gap' can be thousands of pounds.

GAP Insurance helps ensure you're not left out of pocket.

See more - When can I claim on GAP Insurance?

How GAP can cover following a theft - A Real Example

You buy a car for £28,000 on PCP. A year later, it's stolen, unrecovered, and your insurer pays out £20,000, the current market value at that time. car thief looking to steal a car on a dimly lit residential road in the UK

With Return to Invoice GAP, you could receive £8,000 to bring you back to the original price paid.

You still have £22,000 outstanding on the PCP finance agreement.

Adding the £20,000 from the motor insurer to the £8,000 from the GAP Insurance, you have your £28,000 back in full.

With this, you can pay off the £22,000 outstanding on the PCP agreement. This leaves you a £6,000 deposit for a new vehicle and everything cleared on the old one.

Without GAP Insurance, you'd have to cover any financial shortfall yourself, possibly while still making monthly payments on a car you no longer own and having to put money into a replacement.

What If the Car Is Recovered?

If the vehicle is recovered quickly and is not written off (if the motor insurer repairs it, for example), then GAP won't apply, because your motor insurer won't be paying out for a write off.

However, suppose the vehicle is recovered as damaged, beyond economic repair, and the insurer writes it off, paying out the market value. In that case, you can claim on your GAP cover for any shortfall.

The key is whether your motor insurer writes off the car as a total loss.

What's Not Covered?

Even with theft included, there are a few cases where GAP Insurance won't help:

If your insurer rejects the claim (for example, if keys were left in the ignition)
If your GAP policy has lapsed or was never activated
If you've passed the policy's eligibility window and didn't take out cover
If the theft occurred before your GAP policy's start date

Please read your policy wording carefully and consult with your provider if you have any questions or concerns.

How to Make a Theft-Related GAP Claim

Call the Police to report the theft and get a crime reference number.
Submit your claim to your motor insurer.
Once the vehicle is declared a total loss and the insurer has confirmed this, inform your GAP provider before accepting the offer.
Provide all the documents requested (insurance settlement letter, invoice, etc.)
Your GAP provider will calculate the shortfall and arrange the top-up payment.

Some providers, including us at Total Loss GAP, can also help guide you through the claim step by step. It does come in handy to be a specialist in GAP Insurance, with 15 years of experience.

Can I Get GAP Insurance After My Car Is Stolen?

No, you cannot buy GAP Insurance retrospectively. If your car has already been stolen, written off, or been in an incident that may lead to it being written off, it's too late to get cover.

That's why it's worth arranging GAP as soon as possible after collecting your vehicle, or even before.

Final Word

GAP Insurance can't prevent theft, but it can protect your finances if your car is stolen and written off. Without it, you could be left covering thousands of pounds on your own.

If you've recently bought a car or signed a lease, now is the time to consider cover, before it's too late.