GAP Insurance FAQs
If your car is written off or stolen, your motor insurer usually pays its current market value, which can be less than you paid or still owe. GAP insurance (Guaranteed Asset Protection) is designed to help cover that shortfall, subject to your policy terms. These answers explain how MotorEasy GAP cover works. Always check the policy documents, as they contain the full terms.
Frequently Asked Questions
GAP insurance, or Guaranteed Asset Protection, helps cover the shortfall if your car is written off or stolen and your motor insurer pays only its current market value. That settlement can be much less than you originally paid, or less than you still owe. Depending on the policy you choose, MotorEasy can top up the payout towards the price you paid, the car's value when cover started, or an eligible lease early-settlement figure. It is sometimes also called shortfall insurance.
Return to Invoice tops up your motor insurer's settlement to the net invoice price you paid, or to your outstanding finance balance if that is higher. It is for new or used cars bought from a VAT-registered dealer within the last 6 months. Return to Value tops up the settlement to your car's market value when the GAP policy started, and is for cars bought privately or more than 6 months ago. Lease or contract hire GAP is a separate product covering the eligible shortfall against your early settlement amount.
It depends on your car, how you paid for it, and whether you could afford a shortfall after a write-off. It is often worth considering on a newer or rapidly depreciating car, or if you have finance or a lease, because you may still owe more than the car is worth. You may need it less if the car is older, or if your motor policy already includes new-car replacement for a limited period. Compare cover, limits and price from a dealer or independently. It is not a legal requirement.
You should take out GAP insurance as soon as you can, because you are not covered until a policy is in place and cars start to lose value from day one. Return to Invoice cover is available for vehicles purchased from a VAT-registered dealer within the last 6 months. If you bought the car more than 6 months ago, or bought it privately, Return to Value cover may be available instead, provided the car still meets the age, mileage and value limits.
For Return to Invoice and Return to Value cover, your car must be under 8 years old, have covered fewer than 100,000 miles, and have an insured value under £75,000 and not below £4,000. It must be listed in Glass's Guide, built to UK specification, unmodified from the manufacturer's specification, and weigh under 3,500 kg. You also need comprehensive motor insurance. Lease and contract hire GAP is separate: the vehicle must be under 8 years old, with fewer than 80,000 miles at start date, and a purchase price under £125,000.
GAP insurance pays only if your comprehensive motor insurer declares the car a total loss, including after accidental damage, fire, theft or flood, and makes a settlement. Return to Invoice covers the difference between that settlement and the net invoice price or outstanding finance, whichever is greater, up to the claim limit. Return to Value covers the difference up to the car's market value at the policy start date. Factory and dealer-fitted extras are included on Return to Invoice. We also contribute up to £500 towards your motor insurance excess.
GAP insurance will not pay if you do not have comprehensive motor insurance, if the car is not a total loss, or if your insurer offers a replacement vehicle, whether you accept it or not. It excludes taxis, couriers, emergency vehicles, motor-trade use, racing or off-road use, negative equity, arrears, road tax, registration fees, number plates and aftermarket modifications. A claim may be declined if the car was left unlocked, keys were left in it, or a theft was not reported to the police. The booklet has the full exclusions.
On MotorEasy Return to Invoice and Return to Value policies, the maximum claim is £50,000, plus up to £500 towards the motor insurance excess you paid on the total-loss claim, once liability is confirmed. Lease and contract hire GAP is different: the most we will pay is the claim limit shown on your policy schedule, plus up to £500 towards your excess and, where applicable, up to six advance rentals to a maximum of £3,000. Your quote or schedule will show the limit that applies to your policy.
Start your claim in your MotorEasy account as soon as you think the car may be a total loss, before you accept any settlement from your motor insurer. Log in, open your GAP insurance product and select Start Claim. You must open the claim within 60 days. If the loss is due to theft or malicious damage, report it to the police within 24 hours and keep the crime reference number. You will need your insurer's settlement confirmation, the original purchase invoice, the V5C and, if required, a current MOT.
Yes. You can cancel at any time by calling 0800 131 0001, emailing info@motoreasy.com, or through your account. Cancel within 30 days of the start date or of receiving the documents, whichever is later, and if you have not claimed you get a full refund. After that, if you paid in full and have not claimed, you get a refund for unused cover minus a £35 fee. If you pay monthly, payments stop and there is no refund for cover received. If you have claimed, the full premium is due.
Your GAP policy ends when you sell or transfer the car to someone else, and you cannot transfer the policy to another person. If you paid in full and have not claimed, you can cancel after the cooling-off period and may receive a refund for unused cover, minus a £35 fee. The policy can be moved to a replacement car only if your motor insurer, or a manufacturer or dealer warranty, provides that replacement after a total loss, and you write to us within 30 days of taking delivery.
Yes, used cars can be covered if they meet the age, mileage and value limits. Return to Invoice is available on used cars bought from a VAT-registered dealer within the last 6 months. If you bought the car from a private seller, Return to Invoice is not available, but Return to Value cover may be. You can pay in full or by monthly instalments at no extra cost. The price depends on your vehicle and the length of cover, so get a quote to see the cost.
If your comprehensive motor policy includes new-car replacement, sometimes called new-for-old, and your insurer offers a like-for-like replacement after a total loss, a MotorEasy GAP policy will not pay, whether you accept that replacement or not. Some motor policies only include this benefit for the first 12 to 24 months. After that period ends, or if your motor policy does not include it, GAP cover may still be worth considering. Check your motor policy first.
Yes. A claim can still be paid if a named driver on your comprehensive motor policy is driving, provided they hold a valid licence and have your consent. You, as the GAP policyholder, must yourself be the motor policyholder or a named driver, and be the registered keeper or named on the finance agreement. A claim may be declined if the driver is unlicensed, or is over the alcohol or drug limits. The booklet has the full conditions.
No. You cannot transfer a MotorEasy GAP policy to a different car you buy, or to another person. The policy ends when you sell or transfer the insured car. The only exception is if your motor insurer, or a manufacturer or dealer warranty, provides a replacement after a total loss, and you write to us within 30 days of taking delivery without having already claimed. If you paid in full and have not claimed, you may cancel and get a refund for unused cover, minus a £35 fee.
No. MotorEasy GAP insurance does not cover negative equity carried over from a previous finance agreement. If you part-exchanged a car that still had outstanding finance, that older debt is excluded from a claim, even if it was rolled into your new loan. Return to Invoice pays the difference to the net invoice price, or to the outstanding finance on the insured car only, whichever is greater, up to the claim limit. Arrears are also excluded.
On Return to Invoice cover, the net invoice price includes VAT, factory-fitted accessories and dealer-fitted options on the sales invoice, plus warranty costs up to £100. It excludes insurance premiums, deposit allowances, discounts, rebates, concessions, cashbacks and incentives. Delivery, registration fees, road tax, number plates, fuel, paintwork protection and other extras are also excluded, as are arrears and negative equity. This invoice figure applies to Return to Invoice claims, not to Return to Value cover.
You will need written confirmation from your motor insurer that it has paid the total-loss settlement and the terms of that settlement, the original purchase invoice or sales receipt, the V5C log book, and a current MOT if the car needs one. For theft or malicious damage you also need a police crime reference number. Start the claim in your MotorEasy account within 60 days, before you accept any settlement.
You can buy GAP insurance from a dealer when you purchase the car, or from an independent provider such as MotorEasy. Compare cover, claim limits, excess contributions, eligibility and price before you decide. Dealer-sold policies can be significantly more expensive, and arranging cover at the dealership is not always the best value. MotorEasy policies can be cancelled within 30 days for a full refund if you have not claimed. GAP insurance is not a legal requirement.
