Connect with us

Hi, what are you looking for?

Editor’s Pick

Gap Insurance Explained

It is a worrying time for motorists with just about everything becoming more expensive. The cost of new and used cars, insurance, fuel and maintenance are all rising, which are even harder to manage when you consider the overall cost of living crisis that is gripping the UK.

In situations like this, you want to make sure that you have financial protection in place and one of the best ways to do this is with gap insurance.

Gap Insurance Overview

So, what is gap insurance exactly? Essentially, this is an optional type of insurance that offers financial protection for motorists after a write-off. In a write-off, motorists would only receive the current market value for their vehicle as a payout. Due to depreciation, this can be thousands of pounds less than what was originally paid for the vehicle or left outstanding on a finance agreement.

With gap insurance, this shortfall is covered so that a motorist can afford a replacement or pay off the amount outstanding on the finance agreement. Keep in mind that cars lose around a third of their value after the first year and over half of their value after three years, so this could leave a motorist short by an enormous amount.

Who Will Benefit the Most?

Gap insurance is a type of coverage that every motorist should consider, but there are some people that it is particularly useful for. These are those that have purchased a new car as they stand to lose the most in the event of a write-off, especially if it was a high-value automobile. It is also a good idea if you have paid for the car on finance so that you do not end up owing the creditor money for a car that no longer exists – this could strain your finances and make it hard to find a new car.

Is it Worth it?

Many will wonder if gap insurance is worth it because it is another expense to manage. You only need to consider the number of accidents on the roads each day to see why it might be worthwhile and many people end up in a write-off without doing anything wrong. Additionally, cars are declared written off when they are stolen and never recovered and car crime is a growing problem in the UK.

It is undependable that many motorists are stressed about money right now with costs so high. Although it is another cost, gap insurance could end up saving you a fortune and it is a type of insurance that should be considered. Accidents are common in the UK and car crime is on the rise, so it is important to have financial protection and reassurance in the form of gap insurance.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Egg vendors arrange their products for sale at a store along Blumentritt in Manila, Jan. 26. Filipinos are grappling with soaring prices of food,...


ICC prosecutor authorized to reopen Philippines drug war investigation – BusinessWorld Online ...


Photo via freepik The past years saw climate change, defined by World Health Organization (WHO) as “the change in climate in time due to...


At Christmastime, monster waves and winds battered the 23-year-old Tubbataha Ranger Station. (Inset photo) Metro Pacific Investments Foundation, Inc. committed to provide an additional...

News The Department of Transportation (DoTr) has one of the most illustrious histories of public service, having been founded under the Malolos Constitution on...


The ongoing LRT-1 Cavite Extension project, which is expected to reduce travel from Baclaran to Bacoor, Cavite from one hour to 25 minutes Transport...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.