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What is GAP insurance and should you buy it?

We explain the peace of mind GAP insurance can provide and where to get the best value cover

Words ByClaire Evans

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So, where should you buy GAP insurance? The salesperson is likely to offer you GAP insurance when you buy a car, but it’s also available from numerous insurers, brokers and comparison websites and these are often cheaper, so shop around before you buy.

What should I look out for?

The five key things to look out for are: length of cover, excess, any exclusions, claims process and cancellation process.

If one policy looks far cheaper than the others, check that the cover isn’t restricted by a very short limited claim period. For example, there are some that stop you from claiming if your car is stolen and not recovered within a period of as little as 30 days.

Pre-approval is something to watch out for, too. It stops you from accepting an offer from the car’s main insurer without the consent of the GAP insurer, and could be used by the GAP company to delay its payout to you by repeatedly rejecting the insurer’s offers.

It’s also important to note that car dealers are no longer allowed to sell you GAP insurance on the same day they sell you a car; they now have to wait for at least two days before offering it to you, and they have to explain the total cost of the policy you’re being offered, as well as the key benefits and exclusions on it.

They must also tell you that you can purchase cover elsewhere. This is because the Financial Conduct Authority (FCA) became increasingly concerned in 2015 that dealerships were selling overpriced GAP insurance without clearly explaining the product to their customers.


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