GAP Insurance

If your car was written off or stolen, what would your insurance pay out? It wouldn't be the price you paid for your car, GAP insurance means you won’t be left out of pocket.

Whatever your insurance provider settles at, we'll cover the difference to the invoice price, cost of a replacement or clearing outstanding finance (whichever is the greatest) - not all GAP providers will!

How does GAP insurance work?

  • If your car is stolen or declared a total loss and your insurers settle following an accident, flood damage or malicious damage then a GAP policy could help.
  • A gap policy will pay the difference between your settlement and the original invoice price or replacement cost of your vehicle or outstanding finance whichever is greatest.
  • So you can drive away with a new car or a cheque for the original purchase price of your car.

What our customers think

Detailed below are real life experiences from our customers who have made a claim on their GAP policy.

  • “I had no problems claiming on my policy, and it was dealt with efficiently, which is more than I can say for the actual car insurance company.”

    Graham J
  • “My wife had a serious car accident and the car was written off. I was able to buy a new shape Ford Focus as a result of taking out the GAP Insurance.”

    Richard L
  • “We received a fantastic service from ALA, our claim was settled very speedily and we didn’t need to do any chasing for the claim to be settled, etc.”

    Linda W


ALAIB Limited trading as ALA Insurance Brokers is authorised and regulated by the Financial Conduct Authority.

FCA firm reference No 571109

20 %

Find a comparable GAP
premium online and we will
beat it by 20% of the difference.

35 £

Our policies start from
only £35 per year. Other
policies are available.

GAP Insurance FAQs

What is GAP insurance?

If your vehicle is declared a Total Loss by your insurer, a GAP Insurance policy will either pay the difference between your Comprehensive Insurance settlement and your outstanding finance, or pay back to your original purchase price or replacement cost, whichever is the higher amount.

Why do you need GAP insurance?

The value of your vehicle will depreciate quickly, on average losing between 50-60% of its value in the first 3 years. GAP Insurance protects you against the financial risk of receiving an insurance payment based on the current, rather than purchase, value of the car.

When should I purchase GAP insurance?

You must apply for a GAP Insurance policy within 180 days of delivery of your vehicle, irrespective of whether your primary insurer offers a replacement facility in the first year. If this is the case, providing you make a claim in the first year, we will start you a brand new policy, free of charge, on the replacement vehicle.

What is “Back to invoice + GAP”?

This policy will pay the difference between the Fully Comprehensive Insurance settlement and invoice price, or it will clear the finance outstanding if this is a higher figure.

What is “Agreed value GAP”?

This policy will pay the difference between the Fully Comprehensive settlement and the Glass’s Guide Retail Price at the time of the GAP policy purchase.

What is “Vehicle Replacement + GAP”?

This policy will pay the difference between the Fully Comprehensive Insurance settlement and the cost of replacing the vehicle with one of a similar age, mileage and specification as the vehicle you originally bought. Or, it will clear the finance outstanding, if this is a higher figure.

What is “Contract hire GAP”?

This policy is designed to clear the outstanding rentals on your Contract Hire agreement and any shortfall between the residual value and insurance settlement. Leasing companies typically charge 50%-100% of the outstanding rentals on top of whatever Fully Comprehensive settlement is made.

How much GAP cover do I need?

If the car is on a lease (contract hire), it is worth checking with the leasing company what their charges are if the contract is terminated due to the vehicle being written off. Many leasing companies charge 50%-60% of outstanding rentals whilst some will charge you 100%. For cars purchased, purely as a guide, you could assume a vehicle 2 years old would be worth about 65% of its original value, for 3 years you would assume 45% - 50% and for 4 years you would assume 35% - 45%.This guide is based on both the average mileage and average wear and tear on the vehicle. You would need sufficient GAP insurance to cover the difference between this and the invoice/replacement cost.

Is it free to transfer my policy should I change my vehicle?

Yes it is, we will transfer the balance in monetary terms from your old policy and take this off the balance of the new policy.

It's a shared vehicle, who needs to apply for the GAP policy?

Provided you are the main driver of a Fully Comprehensive policy on the vehicle or a comprehensively insured named driver, then either person in this case can apply for the GAP insurance policy.