Vehicle Finance GAP Insurance

Vehicle Finance GAP Insurance is a must have if you purchased your vehicle using a finance agreement such as Hire Purchase (HP), Personal Contract Purchase (PCP) or Conditional Sale (CS).

What does Vehicle Finance GAP Insurance cover?

If your vehicle is written off or stolen, Vehicle Finance GAP Insurance pays the difference between what your motor insurer pays you and the total amount you still owe your vehicle finance provider.

How do Vehicle Finance GAP policies work?


You buy a vehicle using finance

Let’s say you purchase a £40,000 car using vehicle finance and agree to repay the finance over a 5 year period.

Once interest is applied (for this example we’ll use 10% as the interest rate), the total amount you’ll be charged by the finance provider over the 5 years is £44,000.


Your car is written off

18 months later, your car was deemed a write-off by your motor insurer after a collision.

Due to your car losing value over time (depreciation), your vehicle is now only worth £26,000 and your motor insurer agrees to pay you this amount as a settlement.


You need to pay your remaining vehicle finance balance

As you signed up to a 5 year vehicle finance agreement, you would still owe the finance company around £30,800 at the time your car was written off.


Your GAP policy covers the gap

Our Vehicle Finance GAP Insurance policy will pay the difference between what your motor insurer pays you (£26,000) and your outstanding finance balance (£30,800), which in this instance would be £4,800.

Vehicle Finance GAP features and benefits

Pays up to £50,000

Provides up to 5 years GAP cover

Suitable for vehicles financed using HP, PCP and CS

Pays £250 towards your motor insurance excess

Covers vehicles up to £150,000 in value

Covers manufacturer fitted extras

Covers cars & vans

Available to individuals and businesses

Covers all drivers who are legally allowed to drive your vehicle

Vehicle Finance GAP policy restrictions

Vehicle must be deemed a ‘total loss’ by your motor insurer

Vehicle must be less than 10 years old

You must have Comprehensive Motor Insurance in place

Vehicle must have covered less than 100,000 miles from date of registration

You must be 18 years old or over

You must be a resident of the UK, Channel Islands or Isle of Man

Vehicle must have been purchased within the last 90 days

For details on all policy benefits and restrictions, please read our Return to Invoice policy wording before purchasing.

Should I buy a Vehicle Finance policy?

A Vehicle Finance GAP policy could be beneficial to you if:

You financed your vehicle using HP, PCP or CS


Your car is likely to drop in value between now and when you finish paying off your loan


You want to avoid paying finance repayments for a vehicle you no longer have

The easy way to buy GAP insurance

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