What Counts as a Total Loss for GAP Insurance?

A total loss is when your motor insurer declares your vehicle a write-off (following an accident, fire, flood, etc), or it’s stolen and not recovered, or recovered and uneconomic to repair. This is the trigger for you to make a GAP Insurance claim.

When a car is declared a total loss · Types of write-off · What does not count · Related links

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When a car is declared a total loss

Your motor insurer assesses the car after an accident, fire, flood, or theft.
If repair costs exceed a percentage of the car’s value (commonly 50-60%), it may be written off.
If stolen and not recovered within a set time, it is declared a total loss.

Types of write-off

Category A/B: Severe damage - car must be scrapped.
Category S/N (formerly C/D): Structural or non-structural damage - repairs possible, but insurer may not authorise them.
Total theft loss: Car stolen and not recovered.

What does not count

Mechanical breakdowns or engine failure are not total losses.
Voluntary termination of a finance agreement or handing a lease back early is not a total loss.
If your insurer repairs the car instead of writing it off, GAP does not pay out.

Tip: A GAP Insurance claim is only possible once your motor insurer has settled the total loss claim first.