GAP insurance provides financial protection in the event that your vehicle is declared a total loss (written off) by your primary insurer. It covers the difference between the current market value of your vehicle at the time of the incident and the original purchase price or the remaining loan amount, whichever is higher. This is especially beneficial if you owe more on your car loan or lease than the car’s depreciated value.

The worth of GAP insurance can vary from person to person. If you’re financing a new or nearly new car, or leasing a vehicle, GAP insurance can be particularly useful. This is because cars depreciate rapidly in the first few years, and your regular insurance may not cover the full amount you owe on the loan if the car is written off.

GAP insurance covers the “gap” between the actual cash value of your vehicle and either the remaining balance on your car loan or the original purchase price of your car. In the event of a total loss due to theft, accident, fire, or other covered events, GAP insurance steps in to cover this financial difference.

Yes, GAP insurance does have exclusions. It does not cover any unpaid or overdue lease/loan payments, any financial penalties from your lease agreement, equipment or accessories not permanently fitted to your vehicle, and costs for extended warranties, credit life insurance, or other insurance purchased with the loan or lease.

The cost of GAP insurance varies depending on factors such as the value of your car and the terms of your loan or lease. However, it typically costs a few hundred pounds. We recommend completing an online quote to obtain your tailored quote.

Some ways to get cheaper GAP insurance quotes include shopping around and comparing prices from different insurers, maintaining a good credit score, and keeping a clean driving record. At Riviera Insurance, we strive to provide competitive quotes for our clients.

There are several types of GAP insurance available. These include Return-to-Invoice GAP Insurance (covers the difference between the insurance payout and the original invoice price of the car), Vehicle Replacement GAP Insurance (covers the difference between the insurance payout and the cost of a new vehicle), and Finance GAP Insurance (covers the difference between the insurance payout and the remaining balance on a car loan).

Depending on the provider, there can be several add-ons or optional extras available with GAP insurance. These may include coverage for additional equipment or modifications, cover for your policy excess, and possibly the inclusion of a replacement vehicle service.

Yes, GAP insurance can be particularly beneficial if you’re leasing a car. If the leased vehicle is written off, you might owe the leasing company more than the car’s insurance payout. GAP insurance can cover this shortfall.

No, you can get GAP insurance whether you’re financing a car, leasing a car, or if you’ve bought a car outright. However, it’s particularly useful when you’re financing or leasing a car, as these are situations where the ‘gap’ can be significant if the car is written off.