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Is GAP Insurance worth it on a used car?
An often asked question regarding GAP Insurance is 'Is GAP Insurance worth it on a used car?'
The perceived industry wisdom is that GAP Insurance may be far less valuable on a used vehicle. Indeed, if you do some simple internet searches on the subject, some 'expert' articles are clear in their view.
"If you've bought a used car, gap insurance isn't as useful. This is because a used car won't fall in value at the same rate as a new car. Therefore, the gap between what you paid and what the insurer will pay you will be far smaller, and the gap policy could be more or less useless." - Money Saving Expert.
What MSE says can be typical of what you will see in industry guides.
But are they right?
Before we answer that question, let's discuss why some believe that GAP Insurance on a used car isn't as useful as it could be on a new car.
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New cars depreciate more quickly than used cars—this is a fair statement. New cars can lose between 15% and 35% in the first year alone and up to 60% in the first three years. Therefore, if you buy a three-year-old car, then it has already depreciated significantly.
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If the car is written off, then the GAP claim may not be that big. While that may well be true as a general statement, we think it is not that simple, as we will show below.
Remember, GAP Insurance (also known as Guaranteed Asset Protection Insurance) is designed to top up your car insurance settlement if the car is stolen and not recovered, or written off after an accident, fire or flood by your insurance company.
Given that the cost of a used car is less than a new one, your standard car insurance policy will provide a market-value payout. .jpg "Total Loss GAP on used cars")
So, do you need to add GAP Insurance to your regular car insurance on a used car?
We think there are several reasons why it deserves serious consideration.
One clear advantage we have at Total Loss GAP over MSE and others is that we have claims data and customer experiences to draw upon. We think these provide some interesting facts to consider.
We will start by showing you some recent GAP Insurance claims that have been paid to our customers.
Used Car GAP Insurance claims examples
Used car GAP Insurance Claim 1 
Car: Audi A6
Date of first registration: December 2018
Date of GAP/Vehicle purchase: January 2021
Purchase price: £25,990
Type of GAP Insurance: Invoice & Replacement GAP
Policy term: 4 years
Policy price: £285.85
GAP Insurance settlement: £7,662.33
Used car GAP Insurance Claim 2 
Car: BMW 730 L d M Sport
Date of first registration: December 2018
Date of GAP/Vehicle purchase: March 2021
Purchase price: £29,500
Type of GAP Insurance: Invoice & Replacement GAP
Policy term: 4 years
Policy price: £285.85
GAP Insurance settlement: £7,705.00
Used car GAP Insurance Claim 3 
Car: Dacia Duster
Date of first registration: February 2020
Date of GAP/Vehicle purchase: June 2022
Purchase price: £13,095
Type of GAP Insurance: Invoice GAP
Policy term: 3 years
Policy price: £99.97
GAP Insurance settlement: £3,680.00
Used car GAP Insurance Claim 4 
Car: Mercedes-Benz C-Class Sport Premium
Date of first registration: May 2019
Date of GAP/Vehicle purchase: December 2021
Purchase price: £29,500
Type of GAP Insurance: Invoice & Replacement GAP
Policy term: 4 years
Policy price: £285.85
GAP Insurance settlement: £13,675.67
Used car GAP Insurance Claim 5 
Car: Audi TTS
Date of first registration: March 2016
Date of GAP/Vehicle purchase: March 2022
Purchase price: £21,820
Type of GAP Insurance: Invoice GAP
Policy term: 5 years
Policy price: £285.85
GAP Insurance settlement: £3,668.99
Used car GAP Insurance Claim 6 
Car : Mercedes Benz C220 AMG Line Premium Bluetec
Date of first registration: September 2014
Date of GAP/Vehicle purchase: February 2020
Purchase price: £15,990
Type of GAP Insurance: Invoice & Replacement GAP
Policy term: 5 years
Policy price: £248.76
GAP Insurance settlement: £5,701
Used car GAP Insurance Claim 7 
Car : Volkswagen Toureg
Date of first registration: March 2018
Date of GAP/Vehicle purchase: February 2022
Purchase price: £39,795
Type of GAP Insurance: Invoice GAP
Policy term: 4 years
Policy price: £229.92
GAP Insurance settlement: £14,714
Used car GAP Insurance Claim 8 
Car: Land Rover Discovery
Date of first registration: March 2019
Date of GAP/Vehicle purchase: April 2022
Purchase price: £33,000
Type of GAP Insurance: Invoice GAP
Policy term: 5 years
Policy price: £299.97
GAP Insurance settlement: £13,194
Used car GAP Insurance Claim 9 
Car: SEAT Leon
Date of first registration: April 2019
Date of GAP/Vehicle purchase: December 2022
Purchase price: £12,657
Type of GAP Insurance: Invoice GAP
Policy term: 5 years
Policy price: £199.98
GAP Insurance settlement: £2,796.50
Used car GAP Insurance Claim 10 
Car: Nissan Juke
Date of first registration: October 2020
Date of GAP/Vehicle purchase: February 2024
Purchase price: £14,998
Type of GAP Insurance: Invoice GAP
Policy term: 3 years
Policy price: £84.98
GAP Insurance settlement: £2,277.00
Used Car GAP Insurance claim highlights
We accept that 10 claims are not a huge amount of data to draw too many conclusions from, but we do feel it gives you a good feel for the potential of a GAP claim on a used car at the time of writing (April 2025).
However, we would like to draw your attention to a few key points: 
The average vehicle age at the point of purchase: 40.5 months, or 3 years, four and a half months old when the vehicle is purchased
The average purchase price of the used vehicle: £23,634.50
It should be noted that the average new car invoice price we cover is over £42,000.
The average used car GAP Insurance claim settled: £7,507.45
Our average GAP Insurance payout in 2024 was £7,216.26, so the current used car settlements are broadly in line with all vehicle ages and GAP Insurance policy types.
The average policy premium: £230.70
The average percentage of the original vehicle price paid in a GAP claim: 31.7%
Other considerations when thinking about GAP Insurance for your used car buy
What is the chance that your car can be written off?
One aspect many do not consider comes when you are in an accident, and your car requires a repair to put it right.
If you have a car worth £30,000 and it sustains £ 15,000 of damage, your motor insurer may decide to repair the vehicle for £15,000 rather than pay you the market value of £30,000.
However, if your vehicle is only worth £17,000 and suffers the same £15,000 worth of damage, then the motor insurer may well decide to write off the vehicle and pay you the market value.
Could a used car be more likely written off by a motor insurer than a new car? If it is written off then a GAP Insurance claim can be made, if you have the cover in place.
Do you have finance on the vehicle?
Used cars are often secured through a finance company, and if they are written off, you will need to settle the remaining finance agreement. GAP Insurance can help you in this situation.
Without GAP Insurance, you will have to settle your outstanding finance. You will then have to buy a replacement vehicle, possibly with a new car finance deal.
When you do not need GAP Insurance on a used car
If the vehicle purchase price is small
Of course, not all second-hand cars are relatively expensive. While you can expect all cars, new or used, to lose value due to depreciation over time, a vehicle with a low purchase price cannot fall as much as a more expensive car.
If a used car can be purchased for a few thousand pounds, GAP Insurance, no matter how low the premium, may not offer much benefit.
At Total Loss GAP, you cannot buy GAP cover for a vehicle with a purchase price of less than £5,000. Many products are also limited, but each GAP Insurance provider may have a different minimum purchase price.
If you do not have Comprehensive car insurance
GAP Insurance generally only works if your primary car insurer writes off the vehicle and pays out the current market value of your car in settlement.
If you only have third-party fire and theft insurance, for example, you may not see a market-value settlement for a fault claim.
GAP Insurance is not worthwhile if you do not have comprehensive motor insurance in place.
If you can afford the loss
Like all insurance, the peace of mind it brings may be underlined by your ability, or desire, to pay out a loss from your own finances.
If you have the money and are willing to pay the difference yourself, then GAP protection may not be necessary.
Key Takeaways - Is GAP Insurance worth it on a used car? 
Our claims data suggests that used cars can benefit as much as new cars from GAP Insurance cover. Our ten latest claims suggest that a used car of around three years old can receive an average of around £7,500 if a GAP Insurance claim is made.
Used vehicles purchased for a lower price may see a smaller claim, on average.
The average percentage of the vehicle's original value paid out in claims is over 30%.
Conclusion
In our view, claiming that GAP Insurance is not worthwhile on a used car is not simple.
Depreciation can impact all vehicles, new or used. Our claims data, which we accept the industry experts may not have access to, suggests that our customers can see similar benefits to new car buyers when getting cover for a used car.