Who needs motor GAP insurance? 

When it comes to insuring your vehicle, it can be difficult to know exactly which policies you might need: everyone knows you need standard motor insurance to drive legally on UK roads, but what else might come in handy?  

Motor GAP insurance is just one additional policy to consider that could help protect you financially should your car ever be written off or declared a total loss. But, is it something you really need and who could it benefit? 

In this article, we’ll explain what GAP insurance is and what it offers as well as which type of people might benefit most from this type of insurance.  

Jump straight to a specific section or read on for the full piece:  

• What is GAP insurance? 
• What benefits does GAP insurance offer? 
• Who could benefit more from GAP insurance? 
• Where can I find the right GAP insurance for me? 

What is GAP insurance? 

Motor GAP cover is a type of vehicle insurance policy that will help protect you financially in the instance that your car is written off or declared a total loss.  

If your car is ever declared a write-off, your standard motor policy (the policy you’re legally required to purchase) will usually cover the cost of your vehicle at the time it is declared a total loss. While this can help fund a new car, many drivers find that what their vehicle was worth when they bought it, was considerably more than what it’s worth a little while down the line (even if your car is less than a year old).

That means you might find that there’s a considerable discrepancy between what you paid for your car and what you receive from your standard insurance company. This is where GAP insurance comes in.  

For example, if you purchased your vehicle for £10,000, but its market value is now only £8,000, your insurance provider will typically only offer you the amount equal to its current value. That would mean you’re £1,000 out of pocket. With motor GAP insurance, you’ll be covered for this discrepancy and your provider should pay out for the additional £1,000 (as long as your claim is valid). 

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Also see: Is motor GAP insurance included in my standard insurance policy

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What benefits does GAP insurance offer? 

With motor GAP insurance, you’ll be covered for the difference between the amount you purchased your car for (if you bought it outright) and the amount your standard motor insurance provider is offering, or the difference between the amount of financing you have left (if you purchased your car via loan or finance) and the amount your provider is offering you.  

But what other benefits could you enjoy with motor GAP insurance? 

Financial protection 

The most obvious benefit of motor GAP insurance is financial protection. And, while some may view insurance policies as an extra expense, they’re actually a financial safeguard.  

Sure, you might need to pay monthly premiums to reap the benefits of GAP insurance, but should you need to make a claim, you could save yourself a lot of money.  

For example, you could purchase cover from just over £10 a month from some providers (Save More Money, 2023); that’s just over £120 per year. However, if you paid £5,000 for your vehicle and your standard insurance provider only offered you £4,000 in the instance your car was declared a total loss, your GAP insurance provider would typically cover the discrepancy, meaning you could be saving hundreds of pounds in the long run.  

Peace of mind 

Peace of mind might not have a financial value, but to many it is priceless. Money struggles offer enough day-to-day stress as it is, without having to worry about paying for a new car at short notice.  

An insurance policy like motor GAP insurance can reduce that stress because you’ll be confident that should your car be declared a total loss, you’ll be covered.  

Who could benefit more from GAP insurance? 

It’s pretty obvious that the people who will benefit most from motor GAP insurance are those who drive a vehicle, and anyone who drives a car could benefit from this type of cover. But what other factors might make someone more likely to need this type of insurance? 

• How frequently you drive: The more often you drive, the more likely you’ll sustain damage to your vehicle. So, those who drive frequently might want to give GAP insurance serious thought. 
• Economic factors: If you haven’t got the economic stability to afford to purchase a new vehicle, GAP insurance could be especially important. 
• Journey length: Longer drivers carry an increased risk of damage to your vehicle as, after all, you’re on the road for longer. Therefore, motor GAP insurance could offer additional security. 
• Work requirements: If you need a car to get to work every day, you can’t afford to go without a vehicle. GAP insurance could help you get back on the road quickly. 
• Nature of work: Those who need a vehicle for work (such as taxi drivers and driving instructors) need their car to earn a living, so motor GAP insurance is especially helpful. However, these drivers need specific insurance that covers their occupation (such as hire and reward motor GAP insurance.)
• Driving-related stress: If you have driving-related anxiety, having extensive insurance could help to reduce your stress when it comes to getting behind the wheel. 

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Also see: What are the benefits of motor breakdown insurance

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Where can I find the right GAP insurance for me? 

Insurance policies can differ from provider to provider, meaning the features and costs of one GAP insurance policy could be different from the features and costs of another. Therefore, it’s important to understand what you need from your cover before making a purchase.  

Thankfully, there are many providers out there offering motor GAP insurance. However, choosing which policy is right for you and weighing up all the different options could be difficult without assistance.  

If you’re having trouble deciding which policy you should opt for, you could use a third-party comparison site.