Vehicle Replacement

More than 500,000 vehicles are written off every year and when a write-off occurs, most fully comprehensive policies will only pay the depreciated value at the time of the write-off, leaving the owner with an unexpected and unplanned expense.
Vehicle Replacement Gap Insurance pays the difference between the motor insurers claim settlement and the cost of a replacement vehicle matching the original vehicle specification, age and mileage (even if that cost is more than the price of the original vehicle).
With Vehicle Replacement Gap Insurance in place, you won’t need to worry about price increases, model succession or reduced discounts so replacing the car is easier and less costly.
For example, if you bought a Toyota Yaris for £14,000 but a year later had an accident and received only £10,000 from your car insurer and the car had gone up in price to £18,000, your Vehicle Replacement Gap Insurance would cover the difference. In most cases, Finance Gap insurance is also part of the package, meaning that outstanding payments on a loan used to pay for the car are covered in full as well.
Gap Insurance can be hugely expensive if you buy through car dealerships so always shop around for the best price. It's available in a number of different places and usually sold by dealerships or specialist brokers.
Do I really need it?
Your car insurance policy should allow you to replace your car with another one of a similar age and condition when yours is written off and if this is all you require from your car insurance, a GAP policy might not be for you.
You are more like to require GAP insurance if you want to replace your car with another brand new one or if you took out finance to buy your new car – your pay-out won't be enough to clear the debt so you’ll end up paying for a written-off vehicle.
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