If you have bought a new car, a gap insurance policy can cover the loss in value if your vehicle is written off. Gap is a shortened version of Guaranteed Asset Protection and can cover the difference between the amount you paid for your car, and the amount your car insurance policy pays out.
For example, if you crash and write off your new car or it is stolen and not recovered a year after buying it, your insurer will only pay out its current value. This is likely to be much less than the amount you paid.
GAP Insurance is designed to plug the gap between what your insurance company pays out after a total loss claim and what the car was bought for. That includes any dealer-fitted accessories or modifications.
The cost of Gap insurance depends on the original purchase price (Value Covered) of the vehicle being purchased
|Term Insured||Value Covered||Price|
|3 Years||Up To £15,000||£349|
|3 Years||£15.001 to £25,000||£399|
|3 Years||£25,001 to £50,000||£449|