Gap Insurance
Save thousands with Gap Insurance from Chorley Group!
You’ve chosen the right car, sorted your finance, arranged your comprehensive insurance - it all feels sorted. Then you hear someone mention GAP insurance and suddenly you’re wondering, “Have I missed something important here?”
GAP (Guaranteed Asset Protection) insurance exists purely to deal with one awkward problem: cars lose value fast in some cases, and if your vehicle is written off or stolen, your motor insurer will usually only pay its current market value, not the price you paid or your remaining finance balance which lands people in some bother financially. That shortfall can be hundreds or even thousands of pounds, depending on the age and value of your car.
36%
of UK drivers have written off a car.
65 %
of UK drivers can’t afford a replacement vehicle with their car insurance settlement alone.
49 %
of UK drivers say they would struggle financially if they wrote off a car in their current situation.
3 to 4
average amount of accidents over the course of their driving lifetime in the UK.
What Is GAP Insurance?
Watch this handy video to learn everything you need to know.
When you drive away in your new or used car, it starts to lose value from day one. If the worst happens and your vehicle is written off or stolen, your motor insurer will usually only pay its current market value, not what you originally paid or what you still owe on finance.
That’s where GAP insurance (Guaranteed Asset Protection) comes in. It’s designed to bridge that shortfall so you’re not left out of pocket at what is already a stressful time.
Want to make a claim?
When you signed up for GAP insurance with Chorley Group, we sent you an email with all the details you’ll need. If you happen to have misplaced that email, you can get in contact with the Premia team and they will be able to help.
FEATURES OF GAP INSURANCE
Pay monthly at no extra cost with 10 interest-free Direct Debit installments.
- Covers the difference between the market value at total loss and the greater of either the finance settlement ororiginal invoice price
- £500 total loss inconvience payment
- £500 contribution towards total loss insurance excess
- Up to £500 per policy year towards non-total loss excess
- Covers dealer fitted accessories that appear on a manufacturers price list up to £1,500
- Covers anyone who is fully comprehensively insured
- Contribution towards temporary replacement vehicle, up to 30 days, maximum of £30 per day
Invoice Price | £5-25K | £25-£50k | £50-£100k |
36 Month Policy Cost | £315 | £365 | £515 |
48 Month Policy Cost | £415 | £475 | £685 |
What's are the benefits of GAP Insurance?
Here are some of the best benefits of GAP Insurance.
Protection against any financial shortfall
Returned to the original position before a write off
Freedom to do as you wish with the pay-out
Average claim submitted to claim paid time of 4.3 days
Guide to everything - GAP Insurance
Everything you need to know about GAP Insurance
Think of GAP insurance as a little financial safety net that sits between your comprehensive insurer’s payout and the figure you actually need to clear your finance or get back to your original purchase price.
In a total loss claim (write‑off or unrecovered theft):
- Your motor insurer pays what the car is worth on the day, based on its market value.
- Your GAP policy looks at the agreed figure it’s protecting - for example, the original invoice price at the dealer, the cost of a replacement car, or your outstanding finance balance.
- If there’s a shortfall between the insurer’s settlement and that protected figure, GAP insurance can step in to cover that difference up to the policy’s limits.
In simple terms, GAP insurance looks at two key numbers:
- What your car insurer pays out if the vehicle is declared a total loss.
- The figure your GAP policy is designed to protect - for example, the original invoice price or your outstanding finance balance.
If there’s a gap between those two amounts, the GAP policy can cover that difference up to the limits of your cover. This helps you settle your finance or get back to the original price level, depending on the type of policy you choose.
At Chorley Group, our team will walk you through a simple example for your chosen car and finance plan so you can see the numbers clearly before you decide.
GAP insurance isn’t compulsory by any means, but it can be especially valuable to any UK motorist if any of the following apply:
- You’ve paid a low deposit or chosen a long finance term.
- Your car is brand new or nearly new and likely to depreciate quickly.
- You’re leasing or using PCP and want protection if the worst happens early in the agreement.
- You’d struggle to cover a sudden shortfall between the insurer’s payout and your finance balance or original price.
If you’re not sure whether you really need it, our team can talk you through example scenarios based on the type of car and finance you’re considering, so you’re not buying cover you don’t feel is right for you.
GAP insurance is most useful for people when depreciation and finance combine to leave you exposed:
- You drive a brand‑new or nearly new car.
- New vehicles can lose a large chunk of value in the first 12–36 months, so a total loss in that window can leave a significant difference between what you paid and what the insurer pays out when you have an accident or you car is written off.
- You’ve taken out PCP, HP or a lease with a small deposit.
- If you’ve put little down and spread the cost over a long term, the finance balance may be higher than the vehicle’s market value for some time. GAP can help bridge that gap so you’re not paying off a car you no longer have.
- You’d struggle to pay the difference from savings.
- Many drivers would find it difficult to suddenly find thousands of pounds to clear finance or step back into a like‑for‑like vehicle. GAP insurance is about avoiding that shock bill at the worst possible time.
If you’re buying an older car outright with no finance and you could comfortably replace it yourself, you may decide GAP isn’t essential and we’ll be honest about that too.
GAP insurance sits alongside your regular car insurance and only comes into play if your vehicle is declared a total loss. It’s not a general repair policy.
It does typically include:
- Apply if the car is written off due to accident, theft, fire or flood, subject to your motor insurer paying out for a total loss.
- Cover the agreed “gap” between the insurer’s settlement and the protected figure in your policy wording (invoice price, replacement cost or finance balance), up to the policy limit.
It does not usually include:
- Pay anything for standard repairs or partial losses.
- Cover missed finance payments, arrears or charges outside the standard settlement, unless specifically stated.
- Pay out if your main motor insurance claim is rejected or you haven’t maintained comprehensive cover.
Full terms, conditions and exclusions are always detailed in the policy documentation that you will be sent, and we’ll encourage you to read them carefully and ask questions before buying. But as always, we will run you through the entire process to make sure you are informed about everything.
What’s not insured under GAP?
Any discount and/or contribution, delivery charges, number plates, road fund licence, new vehicle registration fee, administration fees, fuel, paintwork and/or upholstery protection kits, cherished number plate transfers, insurance premiums (including for this policy), subscription charges, cost of fuel or warranty charges. Vehicles with purchase prices under £5,000. Any negative equity.
Specialist GAP brands often highlight their independent ratings, awards and customer reviews to show that their policies are trusted and recognised by the industry. At Chorley Group, we take a similar approach to trust across our sales, servicing and protection products:
- We work with established GAP insurers and administrators whose products are specifically designed for the UK motor market.
- We explain how GAP fits with your wider finance and insurance set‑up, rather than selling it in isolation.
- Our team can share real‑life examples of how GAP has helped customers in total loss situations, and where it may not be necessary, so you can weigh up pros and cons honestly.
If you’d prefer to take independent advice, or explore specialist GAP providers online, we’ll always respect that choice.
Is GAP Insurance Right for You?
The answer won’t be the same for everyone. It depends on:
- How you’ve funded your car (cash, PCP, HP, lease).
- How quickly your chosen vehicle is likely to depreciate.
- How comfortable you’d be covering any shortfall yourself if the car was written off tomorrow.
If you’d like to see how GAP insurance could work specifically for your new Chorley Group car, speak to our team when you’re choosing your next car or arranging a test drive at your local Chorley Group dealership. We’ll run through the options, give you clear figures and leave you to decide whether that extra layer of protection feels right for you.
Frequently asked questions
Here are some of the frequently asked questions about GAP Insurance.
Standard comprehensive car insurance will usually pay out what your vehicle is worth at the time of the claim, taking depreciation into account. If you’ve taken a long‑term finance agreement, paid a low deposit, or bought a new or nearly new car, that payout can be less than what you originally paid or still owe. GAP insurance is there to help protect you from that difference, not to replace your motor insurance.
GAP insurance only applies if your vehicle is declared a total loss (for example, after a serious accident, theft, fire or flood) and your comprehensive motor insurer has accepted and paid the claim. It won’t usually cover partial losses or standard repairs, missed finance payments or arrears, or situations where your main insurer declines the claim or voids your policy. Exact exclusions, limits and conditions will always be set out in the policy documents, which we encourage you to read carefully.
Policy length varies depending on the product and the term of your finance or lease agreement. Many GAP policies run for between 2 and 4 years, with some options tailored to the specific duration of your PCP, HP or contract hire. We’ll explain the available terms for your chosen vehicle and funding when we provide a quote.
If you change vehicle mid‑term, you’ll usually need to let the GAP provider know straight away. In some cases the policy can be transferred or amended for your new car; in others you may need to cancel and take out a new policy. The exact process and any fees will depend on the insurer’s terms, so we’ll help you check this before you commit.
Want to know more or speak to one of our team?
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