The true cost
GAP Insurance Cost Calculator
Work out the shortfall GAP insurance would cover if your financed car is written off.
Write-off shortfall
£5,000
GAP policy cost
£199
The gap GAP would cover
- Out of pocket without GAP
- £5,000
- Out of pocket with GAP
- £199
If your car is written off, a motor insurer pays its market value — often less than you still owe. GAP covers that shortfall. Weigh the policy cost against the gap and how fast your car drops in value.
How we work this out
Shortfall = outstanding finance (settlement figure) − insurer's write-off payout (the car's market value). GAP insurance covers this shortfall. A positive shortfall is what you would otherwise owe with no car; if it is zero or negative, GAP pays nothing.
GAP is optional and only pays if the car is written off or stolen. Weigh the premium against the shortfall and how fast the car depreciates.
Full method: how we calculate.
GAP insurance covers the gap between what your insurer pays out if the car is written off and what you still owe on the finance. This calculator estimates that shortfall, so you can weigh the policy cost against the risk.
If your car is written off, your insurer pays its market value — which can be less than your outstanding finance. Enter the car's value and your settlement figure above to see the shortfall GAP would cover.
What is GAP insurance?
GAP (Guaranteed Asset Protection) insurance pays the difference between your insurer's write-off payout and the finance you still owe. Without it, you could be left owing money on a car you no longer have.
If your financed car is written off or stolen, your standard insurer pays its current market value — not what you owe. Because cars depreciate faster than the finance falls, that payout can be thousands less than your settlement figure. GAP covers that gap.
How the shortfall works
The shortfall is your outstanding finance minus the insurer's payout — the amount you would still owe with no car to show for it. That figure is exactly what GAP insurance covers.
Worked example
When GAP insurance is worth it
GAP is most worth it on a new or fast-depreciating car bought with little deposit, where the shortfall risk is highest. On an older car or a big-deposit deal, the gap may be small or nil.
If you put down a big deposit or bought a used car that depreciates slowly, the shortfall may be too small to justify the premium.
- New cars: depreciate fastest early on, so the gap can be large in the first few years.
- Low or no deposit: you owe more relative to the car's value, widening the gap.
- Long terms: the balance falls slowly, so the gap stays open longer.
GAP cost vs the risk it covers
Weigh the GAP premium against the shortfall it would cover and the chance of a write-off. A small premium can be worth it if the potential gap is large.
Buy GAP from a standalone provider rather than the dealer if you can — it is usually far less for the same cover. Check the policy actually covers your finance, including any balloon.
| Situation | Typical shortfall risk | GAP worth considering? |
|---|---|---|
| New car, low deposit | High | Often yes |
| Used car, big deposit | Low | Often no |
| Long term, no deposit | High | Often yes |
GAP, settlement and negative equity
The shortfall GAP covers is closely linked to negative equity — both come from owing more than the car is worth. Knowing your settlement figure tells you both.
Work out your settlement figure on the settlement calculator, then see whether you are already in negative equity. If you are, the write-off shortfall would likely be larger, and GAP more valuable.
Were you mis-sold finance or add-ons?
Some car finance from 2007–2024 carried hidden commission, and add-ons like GAP were sometimes mis-sold too. If yours was, you may be owed redress.
The FCA's motor finance redress scheme follows the Supreme Court ruling of 1 August 2025. Estimate your finance position with the compensation estimator — an estimate, not a promise, and free to claim yourself.
Frequently asked
What is GAP insurance?
How does the GAP shortfall work?
Is GAP insurance worth it?
Where should I buy GAP insurance?
Does GAP insurance pay out if I'm in negative equity?
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