Should I Get GAP Insurance?

GAP Insurance is usually worth considering if your car is new or financed, as it can protect you from depreciation after a total loss. It is often less relevant for older or low-value cars, where the financial gap is smaller. The right choice depends mainly on how you bought the car, its current value, and how much you would lose if it were written off.

This page explains

Who GAP Insurance helps most · When you may not need it · Key factors to consider · Useful next steps

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Who benefits most from GAP Insurance?

New car buyers: New cars lose value quickly; GAP can cover the shortfall.
PCP or HP customers: Finance settlements can exceed insurer payouts in early years.
High-depreciating vehicles: Owners of premium cars, or some EVs, face steep depreciation curves.
Long-term keepers: GAP is useful if you plan to keep your car for several years.

When GAP Insurance may not be needed

Older or low-value cars: If the market value is already modest, the payout gap is limited.
Short-term leases: If the lease includes a large deposit or advanced rental, GAP by itself, may be unnecessary. However you can look to cover your advanced rental payment if you would rather not lose it in a write off of theft situation.
Cash buyers of cheaper cars: For smaller purchase prices, GAP is less relevant.
Extensive motor cover: Some insurers include “new for old” in the first year. However, if you are thinking of longer term ownership, you could look to defer your GAP cover. (See More - Deferred GAP Insurance).

Factors to consider

Depreciation rate: Does your car’s value drop steeply in the first few years?
Finance terms: Are you likely to owe more than your car’s market value?
Ownership plans: Will you change the car soon or keep it for years?
Risk comfort: Would you accept the loss if your car were written off?

At Total Loss GAP, we provide GAP Insurance for individuals who finance their cars through HP or PCP, pay cash for their vehicle, or enter into a lease arrangement. GAP cover is available for between 2 and 5 years. This gives plenty of flexibility for those thinking about buying GAP Insurance.

Useful next steps

For more information, visit our GAP Insurance Guides Centre or explore the GAP Insurance 101 quick-fire answers.