Gap Insurance

Protecting your investment by taking out fully comprehensive car insurance may not cover you against the motorists biggest expense – car depreciation!
Gap insurance provides cover against depreciation in the event that your vehicle is written off after an accident, theft, or fire.

Compare Basic Gap Insurance

Quotes shown below are for Basic Gap Insurance/Finance Gap Insurance.

Insurance Provider	Logo	Policy Cost 3yr/£5000 Claim Limit	Policy Cost 3yr/£10000 Claim Limit	Policy Cost 3yr/£20000 Claim Limit	Cover Period	Max Vehicle Age at Policy Start	Private or Dealer Sale	Car Purchase Method	Policy Purchase Timeframe	Pays First £250 Insurance Excess	Rating	Read Review	Get a Quote
ALA.co.uk		£95.00	N/A	N/A	1 to 3 years	7 years	Private or Dealer	Cash or Finance	After 180 days			Read Review
Click4Gap.co.uk		£95.00	£133.00	£207.00	1 to 4 years	7 years	Private or Dealer	Cash or Finance	3 months to 7 years (after purchase)	Only if extra premium paid		Read Review
Surf&Protect.co.uk		£134.26	£158.03	N/A	1 to 4 years	6 years	Private or Dealer	Cash or Finance	105 days after purchase	N/A		Read Review

Compare RTI Gap Insurance (Return to Invoice Gap)

Quotes shown below are for RTI Gap Insurance.

Insurance Provider	Logo	Policy Cost 3yr/£5000 Claim Limit	Policy Cost 3yr/£10000 Claim Limit	Policy Cost 3yr/£20000 Claim Limit	Cover Period	Max Vehicle Age at Policy Start	Private or Dealer Sale	Car Purchase Method	Policy Purchase Timeframe	Pays First £250 Insurance Excess	Rating	Read Review	Get a Quote
ALA.co.uk		£77.00	£90.00	£132.00	1 to 4 years	10 years	Private or Dealer	Cash or Finance	Up to 180 days after delivery			Read Review
Click4Gap.co.uk		£95.00	£133.00	£207.00	1 to 4 years	7 years	Private or Dealer	Cash or Finance	3 months to 7 years (after purchase)	Only if extra premium paid		Read Review
Surf&Protect.co.uk		£134.26	£158.03	N/A	1 to 4 years	6 years	Private or Dealer	Cash or Finance	105 days after purchase	N/A		Read Review

Compare Vehicle Replacement Gap Insurance

Quotes shown below are for Vehicle Replacement Gap Insurance (VRI Gap)

Insurance Provider	Logo	Policy Cost 3yr/£5000 Claim Limit	Policy Cost 3yr/£10000 Claim Limit	Policy Cost 3yr/£20000 Claim Limit	Cover Period	Max Vehicle Age at Policy Start	Private or Dealer Sale	Car Purchase Method	Policy Purchase Timeframe	Pays First £250 Insurance Excess	Rating	Read Review	Get a Quote
ALA.co.uk		£133.00	£152.00	£233.00	1 to 4 years	10 years	Dealer Only	Cash or Finance	Up to 180 days after delivery			Read Review
Click4Gap.co.uk		£171.00	£271.00	£448.00	1 to 3 years	Cars up to 3 months old	Private or Dealer	Cash or Finance	Up to 3 months after delivery	Only if extra premium paid		Read Review
Surf&Protect.co.uk		£191.26	£206.41	£240.62	Up to 4 years	6 years	Private or Dealer	Cash or Finance	Within last 105 days	Pays First £250		Read Review

So Do You Need Gap Insurance?

Most of us think that our Comprehensive Motor Insurance policy will provide all the protection and cover we need in the event that our cherished possession is written off.  In actual fact, our motor insurance isn’t as comprehensive as we think!

When a vehicle is written off after an accident or theft, chances are the motor insurance policy will only cover the vehicle’s current market value, at the time of the claim.  If you have purchased your car using a personal loan, or a car finance package from your dealer, you will most likely be in negative equity until you have paid off a good chunk of your loan!  Even if you have paid cash for you car, in the event of an insurance write-off, your motor insurance settlement will be less than the purchase price of your vehicle.  Take a look at the What Car Depreciation Calculator and see for yourself how much your car is depreciating!

Gap Insurance Will Protect You Against Negative Equity

New spectre of negative equity stalks thousands of CAR owners.

Plunging car prices are leaving thousands of motorists in ‘negative equity’ on their vehicle loans, experts have warned.  Many predicted future values on which car finance deals are based, are well above what the vehicle is now worth.

It means many car buyers are in the same position as those whose mortgages are bigger than the value of their home…

Before you take out a car on finance consider what the financial position could be in the event of an insurance write off claim.  For example, you take out a 5 year loan from the dealer to buy your car.  Work out what you think the finance settlement will be using this finance settlement calculator in 2 years time and ask yourself if the value of the car after two years of depreciation will cover the finance settlement?  The answer to that question will go a long way to deciding if you need gap insurance in order to cover any negative equity.  Don’t forget, the financial liability is all yours, no matter what the gap is between the settlement amount and the insurer’s valuation.

Car depreciation: what you need to know

The moment you drive a new car off the forecourt, its value starts to seep away through car depreciation. By the time a Ford Focus is three years old, for example, it’s likely to be worth just 40% of the original list price. In fact, whichever car you choose, car depreciation is likely to account for more than half of your running costs over the first three years.

So how can you avoid getting stung? Well, don’t get hung up on depreciation as a percentage of a car’s list price, but instead concentrate on the real financial costs.  By comparing the discount you can get on a new car with its future resale value, you may find that a model you thought looked cheap to buy works out more expensive in the long run, or vice versa…

Will you ever need Gap Car Insurance?

Here are some facts to consider:-

• Over 200,000 cars are stolen every year and only 60% are ever recovered and returned to their owners.
• Around 500,000 cars each year are involved in serious accidents and damaged beyond economical repair.
• Insurance Companies are writing off more cars than ever due to the high cost of repairs and materials used in modern motor manufacturing.
• UK car crime is now a third of all crime.
• A vehicle is stolen every minute in the UK and a third never recovered.
• Your motor insurance company will value your car at the time of the claim and the resultant settlement offer will always be less than the price you paid for your car.
• Cars depreciate the moment that you drive them away from the forecourt.
• Cars depreciate every month and can loose over 60% of there value over a three year period.
• When a write off occurs you are responsible for any financial shortfall.

You can’t guarantee that you won’t add to these statistics, but you can take adequate precautions just in case!

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