Vehicle Replacement GAP Insurance

Vehicle Replacement GAP Insurance is ideal for car owners who got a great deal when buying their car, meaning they’d be less likely to be able to replace the vehicle like-for-like for what they originally paid for the vehicle.

What does Vehicle Replacement GAP Insurance cover?

If your vehicle is stolen or damaged beyond repair, Vehicle Replacement GAP Insurance pays the difference between what your motor insurer pays you and either:

What it will cost to buy a replacement vehicle of the same age, mileage and spec or your outstanding finance agreement amount, whichever is greater.

How do Vehicle Finance GAP policies work?


You buy a vehicle

Let’s say you buy a brand new car from a dealership which cost £35,000.


Your vehicle is stolen

18 months later, your car was stolen and was never recovered.

Because you used your car for your daily work commute, your car accumulated high mileage during your 18 month ownership, therefore your motor insurer offers you a settlement of only £28,000 - £7,000 less that its original invoice price.

However, the make and model of your vehicle when bought new hasn’t lost a great deal of value and will cost £32,000 to replace on a like-for-like basis – only £3,000 less than its original ticket price of £35,000.


You're unable to replace the car like-for-like

This leaves you with a financial shortfall of £4000, meaning you may not be able to buy a replacement car of a similar spec to the one that was written off.

What’s more, it’s likely you’ll need to continue paying the loan repayments using other financial means....


Your GAP policy protects you

Your Vehicle Replacement policy will pay the difference between what your motor insurer pays (£28,000) and what it costs to replace it with a new vehicle on a like-for-like basis (£32,000) – which in this instance is £4,000.

Vehicle Replacement features and benefits

Pays up to £50,000

Provides up to 4 years GAP cover

Pays £250 towards your motor insurance excess

Covers vehicles up to £150,000 in value

Covers cars & vans

Available to individuals and businesses

Covers all drivers who are legally allowed to drive your vehicle

Covers manufacturer fitted extras

Vehicle Replacement policy restrictions

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

Vehicle must be less than 12 months old

Vehicle must have covered less than 10,000 miles from date of registration

Vehicle must have been purchased within the last 90 days

You must have Comprehensive Motor Insurance in place

You must be 18 years old or over

You must be a UK resident

For details on all policy benefits and restrictions, please read our Vehicle Replacement policy wording before purchasing.

Should I buy a Vehicle Replacement policy?

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

Your vehicle is likely to drop in value between now and the end of your finance term


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


Your vehicle is likely to drop in value between now and the end of your finance term

The easy way to buy GAP insurance

Your instant quote is a few clicks away…