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.