What GAP actually does
If your car is stolen or written off, standard motor insurance pays out at the current market value. GAP pays the difference between that market value and your outstanding finance balance — protecting you from being in debt on a car you no longer own.
When it earns its keep
You bought a new (or nearly-new) car on a long HP or PCP with a small deposit. In the first 2-3 years, standard insurance pay-outs are almost always less than what you still owe. GAP fills the gap — and can be worth £3,000-£6,000 on a total-loss claim.
When it doesn't
You bought used with a large deposit, or your car is 5+ years old, or you're within 12 months of the end of your agreement. Standard insurance will almost always cover the outstanding balance in these cases.
Where to buy it
Never at the dealership at point of sale — dealer-sold GAP is typically 2-4x the price of standalone GAP from ALA, Direct Gap or Click4Gap. Buy standalone within 30 days of your car finance start date.
