GAP insurance is one of those products people often have a vague opinion on without fully understanding what it does. That gap in understanding, no pun intended, can end up being expensive. Here are the most common GAP insurance myths worth clearing up.
Myth: “My comprehensive insurance already covers this”
Comprehensive motor insurance covers the current market value of your car if it’s written off or stolen. It does not cover the difference between that value and what you paid, or what you still owe on finance. That’s a separate risk entirely, and it’s exactly what GAP insurance is designed to address.
Myth: “GAP insurance is only worth it for brand-new cars”
New cars do depreciate fastest, but the relevant question isn’t the age of the car, it’s the size of the gap between its current value and what you’d owe or want to replace it for. A nearly new car bought on finance, or a used car with a higher remaining loan balance, can carry just as much risk.
Myth: “I can buy GAP insurance any time”
Most GAP policies, including ours, have a limited window for purchase, typically within 90 days of buying or financing the vehicle. Leaving it too long can mean you’re no longer eligible, even if you decide later that it makes sense for your situation.
Myth: “Dealership GAP insurance is the same as buying independently”
Dealership GAP insurance is often more expensive than equivalent cover bought independently, partly because it’s sold as an add-on during a high-pressure purchase moment. Independent FCA-regulated providers frequently offer the same level of protection, sometimes more comprehensive, at a lower cost.
Myth: “If I own my car outright, I don’t need GAP cover”
If you’ve bought your car outright and you’re comfortable with its current market value, the gap may genuinely be minimal. But it’s worth actually checking that assumption rather than guessing, particularly if the car was a significant purchase.
Myth: “GAP insurance claims are complicated and rarely pay out”
A legitimate GAP claim, made within policy terms and supported by the right documentation, is generally straightforward. The process runs alongside your main motor insurance claim rather than replacing it. As an FCA-regulated provider, we’re required to handle claims fairly and transparently, and our UK-based Stockport team is on hand throughout.
Why getting the facts right matters
Misunderstanding what GAP insurance actually does, or assuming it doesn’t apply to your situation, is often only discovered after a total loss claim has already gone through. By then, there’s no opportunity to reconsider. Taking a few minutes to check the facts before you need them is a far better position to be in.
