GAP Insurance Quote - What You Need to Know

If you are new to the subject of GAP Insurance, then you may be looking for some help and guidance. GAPInsurance123 is one of the longest-established GAP Insurance brands in the UK and has been selling Guaranteed Asset Protection products to UK consumers for over a decade. Our experience is built on assisting hundreds or thousands of car owners on the subject we understand best, GAP Insurance cover.

One area that we are often asked about is how you go about getting a quote for GAP Insurance.   

Several factors come into play here too. There are several types of GAP Insurance coverage you can get. Each may suit different car purchases. There is sometimes more than one type of GAP coverage for the same quotation. So which one is best for you?

Here we will answer these questions and let you know what information you must provide to get a GAP Insurance quote.

Understanding GAP Insurance

GAP Insurance protects you from financial loss if your vehicle is declared a total loss or written off by your car insurance company. Your motor insurer may only provide you with the then-current market value of the car in a settlement.

Therefore GAP Insurance covers the element of depreciation suffered by the vehicle since you first got it.

There are different types of GAP Insurance, and each can protect you differently.

How does each type of GAP Insurance work?

Return to Invoice GAP Insurance - covers the difference between the motor insurer's settlement and the price you originally paid for the vehicle. 

Vehicle Replacement GAP Insurance - covers the difference between the motor insurer's settlement and the cost of the equivalent replacement vehicle. If you bought the vehicle as a brand new car, it would be based on the comparable brand new replacement car when you claim.

Lease and Contract Hire GAP Insurance - covers the difference between the motor insurer's settlement and the settlement on the contract hire agreement required by the leasing company.

Finance GAP Insurance - covers the difference between the motor insurer settlement and the outstanding finance balance on a hire purchase or personal contract purchase agreement.

Negative Equity GAP Insurance - covers the difference between the motor insurance settlement and the outstanding finance balance, including an amount of negative equity carried over from a previous finance agreement.

Agreed Value GAP Insurance - covers the difference between the motor insurers' settlement and the vehicle's value when you first bought the policy. This 'agreed value' is typically based on the Glass's Guide value when the policy is purchased.

How to Get a GAP Insurance Quote

When getting a GAP Insurance quote online through a specialist like GAPInsurance123, you must provide certain information to get an accurate quote.

Each GAP Insurance provider may differ in what they require from you, so that we will use GAPInsurance123 as a general example. Here we will provide you with the questions we will ask of you and why they are essential. We will also guide you through the quotation page and what you need to choose to get a quote.

GAP Insurance quote questions

Are all the drivers for the vehicle over the age of 18?

We need you to confirm that you, as the policyholder and any named drivers on your motor insurance policy are all over the age of 18.

If you answer 'yes,' you can answer the following question. We cannot provide a quote if you answer 'no'.

How much did/will your vehicle cost?

Here we ask you to confirm what the purchase price of your vehicle is. That is the invoice price before any finance interest is added, but it would include any discount provided by your car dealership.

We can provide an online quote depending on the vehicle's purchase price. For more expensive cars, we need to find out some further information and provide you with a quote over the phone.

If your vehicle is on a lease, then you will not know the price paid for the car. In this case, we need you to confirm that the vehicle has a P11d value of less than £75,000 to continue.

Where did you buy your vehicle?

Here we are asking you to confirm who you bought the vehicle from. This will dictate which type of GAP Insurance may be available to you. A bona fide licenced Motor company registered for VAT, or a main franchised dealer is the usual route for brand-new cars.

If you have bought a used car, it could also be from a dealer, but it also may be from the auction or purchased from a private seller.

What type of vehicle would you like a GAP Insurance quote for?

Here we ask you to confirm what type of vehicle you have. GAPInsurance123 can provide a quote for cars and LCVs. If you have a motorbike or a motorhome, you can try our sister website at EasyGAP.co.uk.

What will you be using your Car / LCV for?

The next question asks how you intend to use the vehicle.

If you use the vehicle for standard Social, Domestic and Pleasure, or even to include commuting and Class 1 Business use, then GAPInsurance123 can provide a quote.

If you are using the vehicle for private hire taxi use or driving school and tuition, then again, our sister website at EasyGAP may be able to help.

Courier use is not something we can quote for currently.

How old is your vehicle?  

Different GAP Insurance products have different maximum vehicle age limits when you buy GAP Insurance.

For example, Vehicle Replacement policies are often considered the best policy for a new car. Therefore some GAP providers only offer it where you are the first registered keeper.

Return to Invoice, on the other hand, is available for new and used cars and, therefore, generally available for older cars.

Annual Top Up GAP Insurance products can be available for vehicles up to 12 years old.

By selecting the age of your vehicle, you should only be offered the appropriate GAP policy for your car.

How many miles has your vehicle done?

Again, some GAP products have different mileage limits when you buy the policy.

For example, our VRI GAP Insurance policy is only available to eligible vehicles with less than 40,000 miles on the clock.

RTI GAP is available for vehicles with up to 80,000 miles on GAPInsurance123. We have an RTI product available on EasyGAP for cars up to 100,000 miles.

Annual Top UP GAP is available for vehicles up to 120,000 miles.

When did you take delivery/collection of your car?

Certain GAP Insurance products must be purchased within a set timeframe of acquiring the vehicle.

For example, with GAPInsurance123, you must purchase a Back to Invoice (aka RTI GAP) or Replacement GAP within 180 days of buying the vehicle. You can buy a deferred option within 365 days of purchasing the car if specific criteria are also met.

Other products like Agreed Value or Top Up GAP may not have any time restrictions.

This question ensures you are only offered GAP products you are eligible for.

How did you pay for your vehicle?

This is a question you have to be careful about. Selecting the wrong answer can mean you are offered the wrong type of GAP cover.

An easy mistake can be made when choosing between a purchase via Personal Contract Purchase and Personal Contract Hire. The key difference is that PCP is a style of hire purchase, and you have a written option in the vehicle to own the car (you may not choose to do so, but the key is you have the option).

Despite sounding very similar in name, personal contract hire is entirely different. PCH is a lease where you have no legal right to buy the vehicle directly from the leasing company.

If you select the Lease/Contract Hire option, you will be asked an additional question by ourselves to confirm you have no option to own the vehicle. This failsafe ensures you have a lease rather than a PCP.

Generating a GAP Insurance quote

With GAPInsurance123, you will now come to the quote page. You may be shown one or more types of GAP Insurance products.

Before you can get a premium price quoted, you will need to provide a couple of further details.

Purchase price/Value/Monthly Rental

You will be asked to enter the purchase price shown on the vehicle invoice if offered Return to Invoice and Vehicle Replacement options.

This is the invoice price after any discounts but before any finance interest is added. It also includes any part exchange allowance and any cash you make included in the purchase.

The purchase price is different than the list price for the vehicle (MRRP) if you have actually paid less than that figure.

Some people looking for a Vehicle Replacement policy think they must use the list price. However, VRI products cover you for the future replacement cost, not the MRRP now.

The GAP Insurance cost is based on the purchase price. If you put in a higher purchase price than you have paid, like the MRRP, you may need to pay more for your GAP cover.

If you are getting a quote for Agreed Value or Top Up GAP, you must use the current market value as the vehicle price. With Agreed Value, this is determined by Glass' Guide. With the Top Up GAP, you can use the valuation you gave on your current comprehensive cover with your car insurance provider.

If you are getting a quote for Lease and Contract Hire GAP, we will ask you for the monthly rental you pay on your lease.

You will also be asked to choose an amount of 'Deposit protection' to cover, should you wish to. This protects the advanced rental payment you paid at the start of your lease. By selecting this, you can claim back the advanced rental payment, up to the maximum amount you choose, and get this back to use as a deposit on your replacement vehicle.

Policy term in years

The second detail we need you to confirm is the length of coverage you require in years.    

There are a few things to think about when choosing this.

• You cannot extend cover at the end of the period - you will only get the same GAP cover in most cases if it is Agreed Value (although the vehicle will be revalued) or the annual Top Up GAP policy. RTI and VRI coverage cannot be renewed or extended.
• You do not have to limit the length of the cover to the same length of any finance agreement - you may intend to change the vehicle before the end of the finance agreement so that you can match up the length of the GAP cover to this. Also, you may intend to buy the vehicle at the end of the finance term, and therefore you can take an extended period of GAP cover if that is the case.
• You can cancel or transfer the GAP policy in most cases - if you are unsure how long you may keep the vehicle, then you should have options to transfer or cancel the policy with a pro-rata refund. RTI and VRI GAP can be transferred to another eligible vehicle of the same value. Lease GAP Insurance and Agreed Value GAP are more specific to the original insured vehicle, so a cancellation, refund and a new policy are best.

The maximum length of GAP Insurance cover you can choose for RTI, VRI, Lease GAP, or Agreed Value is four years. Top Up GAP is a 12-month policy.

If you are looking for five years RTI or VRI, then please try our sister website at Total Loss GAP.

Comparing GAP Insurance Quotes

In most cases, the quote you get will be for a single GAP product. However, you may find RTI and VRI GAP Insurance policies offered on new and used cars less than four years old and under 40,000 miles.

So which is the best type of GAP Insurance between Return to Invoice and Vehicle Replacement GAP?

In truth, these styles of GAP protection are very similar. We have made an in-depth comparison between RTI and VRI, but here are the basics:

Return to Invoice GAP Insurance pays the difference from the motor insurer's settlement back to the vehicle's original value as stated on the purchase invoice.

Vehicle Replacement GAP Insurance (with GAPInsurance123) pays the difference between the motor insurers' settlement back to the higher of the original invoice price of the cost of the equivalent replacement vehicle.

That means if the original vehicle you bought were brand new, it would be the brand new car of the exact specification when you make a claim.

If the vehicle you bought was used, it is the same age and mileage, like-for-like replacement, as yours was on the day you bought it. So if you purchased a two-year-old, 20,000-mile Toyota Yaris, then it would be another two-year-old, 20,000-mile Yaris at the time you claim. Essentially the same car, age and mileage that you started with, even if it has gone up in value.

So if your vehicle is written off or stolen, RTI can give you back the price you first paid. With VRI, if the cost of the replacement vehicle increases, then that extra amount is added to your settlement.

Common Questions About GAP Insurance Quotes

Let's address some common questions about GAP insurance:

Is GAP insurance worth it?

If you owe more on your car than its depreciated value, GAP insurance can save you from significant financial loss in the event of a total loss.

Remember that you can only claim on GAP if the motor insurer declares it a write-off. If it is written off or stolen, then the GAP claims process can top up your motor insurance payout.

This can help pay off your remaining finance settlement to the finance company and pay off outstanding rental payments to a lease company.

Are there different types of GAP insurance?

There are different types of GAP insurance; each protects you in a different way. Using the quotation system should provide you with the correct types of cover you are eligible for.

Is GAP insurance different from fully comprehensive?   

Yes, fully comprehensive typically refers to car insurance covering you for road risk claims, fault or not, fire, flood, theft, etc. GAP insurance is additional coverage that you can purchase to add to your comprehensive protection.

What are the cons of GAP insurance?

One potential downside is that you might pay for coverage you never use. However, for many people, its peace of mind is worth the cost.

Is Finance GAP Insurance the same as Lease GAP Insurance?

Not really. They both do similar things in covering a shortfall between a market value settlement from the car insurer and a financial settlement if the vehicle is declared a total loss.

However, finance GAP tends to be available for hire purchase or personal contract purchase agreements (where you can own the car).

Lease GAP is designed for leases where you do not have the option to own the vehicle.

What type of GAP insurance do I need for HP?

A Return to Invoice or a Replacement GAP Insurance policy would generally be a straight choice. Most car dealers only offer RTI GAP, so if you like the idea of any increased replacement cost being covered, too, then an online search will be needed.

Some finance companies may offer a form of finance GAP to cover a shortfall on any outstanding finance loan amount you may owe.

The issue with finance GAP is that it does not return any money to the insured. If you have put any decent deposit into the agreement, you lessen the chance of any shortfall anyway.

Can you get GAP insurance on any car?

Can you get a GAP Insurance policy on any car brand? Getting GAP on any exotic car you like may be possible, but, in reality, luxury brands are much more challenging to find standard cover for, with many excluded from cover. Expensive cars can see large payouts after a write-off. This can put off many of the mainstream underwriters from providing cover.

Does GAP Insurance cover dents or breakdowns?

GAP Insurance can only be claimed if the car is written off or stolen and declared a total loss by a car insurance provider. This may follow an accident, fire, flood or theft.

If the vehicle suffers a mechanical breakdown, like engine or gearbox failure, then any repair costs are not covered by GAP Insurance cover. You would need a form of vehicle warranty or guarantee to cover the cost of this.

If the vehicle suffers body damage, unless written off as a total loss by the motor insurer, then the cost of repairing these dents and scratches is not covered by GAP protection. You would need a form of Cosmetic Repair Dent Insurance to cover these types of issues or claim on your motor insurance.

You must claim on your GAP coverage if your motor insurance declares your car a write-off.

Do you need GAP insurance if you pay cash?

Internet 'experts' often advise that you may not want GAP Insurance protection if you do not have any form of car loan on the vehicle.

Is this right? Maybe not.

How does GAP Insurance work on 'cash' buys, then? Well, in paying for a vehicle outright, you are paying all of that out of your own funds. You may still want to protect that investment over some time. If you take a Back to Invoice policy, and your car insurance provider decides to write off the vehicle, you can get your investment back in full.

Updated 26/6/23, written by Mark Griffiths