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Covers the difference between the amount you paid for the car and the insurer settlement, or the outstanding finance amount.
Example
For example, let’s assume you purchased a car for £20,000 and it was worth £12,000 at the time it was written off or stolen.
Your Gap Insurance would cover the shortfall of £8,000, meaning you won’t be left significantly out of pocket.
If you paid for the vehicle via a finance agreement, your Gap Insurance policy would cover the outstanding amount.
That means you’re not left repaying the finance company for a car that you can no longer use.
£20,000 purchase price
