About Gap Insurance

Protect Your Finances with Gap Insurance

If you’ve bought a new or used car in the last 180 days, Gap Insurance can help protect you from significant financial loss if your vehicle is written off or stolen.

Even with comprehensive motor insurance, you could still face a large shortfall. Your insurer typically pays only the market value of the car at the time of the loss — which can be tens of thousands of pounds less than you originally paid, especially in the first few years due to depreciation. On top of that, you may still owe money on finance or face early settlement penalties.

Why Depreciation Matters

New and nearly-new cars lose value very quickly. This is called depreciation. In the first few years, a car can lose 40–60% (or more) of its original value.

Your comprehensive motor insurance will usually only pay the market value of the car at the time of the loss — not what you originally paid. This difference can leave you with a significant shortfall, especially if you still owe money on finance.

Is Gap Insurance worth it?

£16,970

Market value at loss,
covered by your
motor insurer

£8,030

Possible shortfall amount,
for your account

If you paid £25,000 cash for your car and a year or so later it’s declared a total loss, after your motor insurance pay-out you could have a shortfall of as much as £8,030. If you have Gap Insurance, this shortfall would be covered in total up to an amount of £75,000, subject to the policy terms, plus up to £1,500 for dealer-fitted accessories and £500 towards your motor insurance excess.

£16,970

Market value at loss,
covered by your
motor insurer

£8,788

Possible shortfall
amount, for your account

If you bought your car for £25,000 and took out finance to cover the cost, and a year or so later when it’s written off the outstanding finance is £26,258. Your insurer will pay out the market value, which could be as little as £16,970, leaving you with a shortfall of as much as £8,788. If you have Gap Insurance, this shortfall would be covered in total up to £75,000, subject to the policy terms, plus an additional £500 towards your motor insurance excess.

What Does Gap Insurance Cover?

Click4Gap provides clear, valuable protection that pays out quickly and directly to you:

Up to £75,000 to cover the shortfall between your motor insurance payout and the original purchase price (or finance settlement)
Up to £1,500 for dealer-fitted accessories
Up to £500 towards your motor insurance excess
Cover from day one
30-day money-back guarantee (no risk to try)

Why Choose Click4Gap?

Simple and straightforward policies
Fast claims payout
Fully regulated and insured
No hidden costs
UK-based support

Policy Documents

Policy Documents

Ready to protect your new car purchase?

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Need help or advice? Call our team on 0203 921 0626 (weekdays 9am–5pm) or email us — we’re happy to assist.

This page was last updated: July 2026.