There isn’t one fixed GAP insurance price that applies to every car or policy. As a general UK market benchmark, MoneySavingExpert and RAC currently put the typical cost at around £100 to £300 for three years of cover. That is a broad market guide rather than an Insureworks price or an individual quotation, though, so the amount you are actually offered could be different.
That makes comparing GAP insurance slightly more interesting than simply finding the smallest number on the screen. Different policies can protect against different kinds of financial shortfall, carry different limits and have different eligibility criteria. So, before deciding whether a GAP insurance cost represents good value for you, it helps to understand what you are getting for the premium.
How much does GAP insurance cost in the UK?
At the time of writing, a useful independent benchmark is approximately £100–£300 for three years of GAP insurance. That works out at roughly £33–£100 a year if you simply divide the total by three, but GAP policies are not necessarily priced or sold on an annual basis, so that calculation should only be used to put the overall figure into perspective.
There is no universal price list covering every GAP policy on the market. A quote needs to reflect the particular product and the information requested by the provider, which is why a headline average should never be treated as the amount you will definitely pay.
For GAP insurance arranged through Insureworks, the reliable way to find the price available to you is to complete the quotation process. If you go on to buy a policy, your premium is shown in your policy documentation and Schedule.
Why does the price of GAP insurance vary?
A bit like cars themselves, GAP policies can look similar from a distance while being quite different once you look under the bonnet.
Across the GAP insurance market, the price can vary with the type and level of protection being purchased. Policy duration and the maximum amount the insurer may pay can also differ, while individual providers may take different approaches to vehicles, values and other eligibility or rating factors.
That means a cheaper policy and a more expensive policy are not automatically offering the same thing. One could have a different claim limit, protect against a different type of shortfall or have different exclusions and eligibility requirements.
This is also why an online average can only take you so far. To know your actual GAP insurance price, you need a quote based on the information requested for the particular cover you are considering.
Does the type of GAP insurance affect what you are paying for?
Yes. Different forms of GAP insurance are designed to address different financial outcomes after an eligible total loss, so it makes sense to understand the cover before comparing premiums.
| Type of GAP insurance | What the cover is designed to address |
|---|---|
| Return to Invoice (RTI) GAP | If the insured vehicle is declared a Total Loss and the motor insurer pays a settlement, the policy can cover an eligible difference between that settlement and the original invoice price, or the relevant lender settlement amount, subject to the policy terms and Maximum Benefit shown in the Schedule. |
| Vehicle Replacement Insurance | Following an eligible Total Loss and motor insurance settlement, this is designed to contribute towards the difference between that settlement and the cost of an eligible like-for-like replacement vehicle, subject to the Maximum Benefit and policy terms. |
| Contract / Lease Hire GAP | Designed for eligible lease and contract-hire vehicles. It can cover an eligible shortfall between the motor insurer’s settlement and the amount required to settle the lease or contract-hire agreement, subject to the policy terms and Maximum Benefit. |
These differences matter when assessing GAP insurance cost. A quote only makes proper sense when you know what financial gap that particular policy is intended to address.
The descriptions above reflect the Insureworks product documentation supplied for Return to Invoice, Vehicle Replacement and Contract Hire GAP. These products are underwritten by Financial & Legal Insurance Company Limited (at the time of publication).
What should you compare besides the GAP insurance price?
The premium matters — nobody wants to spend more than they need to — but it is only one part of the comparison.
Start with the Maximum Benefit, which is the highest amount the insurer will pay under the relevant GAP policy and is shown in the Schedule. Think about this alongside the type of financial shortfall the policy is designed to insure rather than viewing the premium in isolation.
Eligibility matters too. GAP products have rules covering issues such as the vehicle, how and when it was purchased, the type of finance or lease arrangement and the motor insurance that needs to remain in place. A low price is not particularly useful if the product does not fit the circumstances of the vehicle or agreement.
Then there are the exclusions. For the Insureworks products documented here, examples include certain unrelated finance costs, missed payments or arrears, deliberate or criminal acts and circumstances where the required motor insurance settlement has not been made. The exact exclusions depend on the policy, so the policy wording and Insurance Product Information Document should be checked rather than assuming one GAP product works exactly like another.
Policy duration also deserves attention. Comparing £X with £Y without checking how long each policy lasts can give a pretty wonky impression of which one costs less.
Is the cheapest GAP insurance always the best value?
Not necessarily. Equally, paying more does not automatically mean you are getting better cover.
The useful question is what the premium gets you. Look at the type of cover, the Maximum Benefit, significant exclusions and limitations, the policy period and whether the product is suitable for the way the vehicle was bought, financed or leased.
That distinction between price and value is particularly relevant to GAP insurance. The Financial Conduct Authority has taken action in the GAP market over fair value and says firms need to assess regularly whether their products provide fair value to customers. That does not mean consumers should simply choose a more expensive product; it reinforces the importance of considering price alongside the benefits provided.
In other words, the cheapest number wins the price contest. It does not automatically win everything else.
Do you have to buy GAP insurance from the car dealer?
No. If GAP insurance is offered when you buy a vehicle, you can still consider alternatives rather than treating the first price you see as your only option.
FCA rules applying where GAP is sold in connection with the sale of a vehicle require customers to receive key information before the contract is concluded. This includes the total GAP premium separately from other prices, the policy duration, significant features and exclusions, whether the product is optional or compulsory, and the fact that GAP contracts are also available from other distributors.
Those rules also generally provide for a deferred opt-in period, so time must ordinarily pass after that information has been supplied before the GAP contract is concluded, although there is a specific customer-initiated route allowing an earlier conclusion in the circumstances set out by the FCA.
The practical takeaway is simple: you can take some time to understand the cover and compare the overall proposition rather than focusing solely on whatever premium is placed in front of you first.
How can I find my actual GAP insurance price?
A market average is useful when you are researching, but eventually you probably want the number that actually applies to your vehicle and circumstances.
That is what the quotation process is for. Insureworks arranges GAP insurance online on a non-advised basis, so the aim is to give you clear information that lets you make your own informed choice rather than tell you which policy you personally should buy. The live Insureworks quote journey asks for details about the vehicle before providing the available quotation.
Want to find out what GAP insurance could cost for your vehicle? Get a GAP insurance quote and check the available cover, price and policy information before deciding whether to go ahead.
GAP insurance cost FAQs
How much is GAP insurance for three years?
As a broad UK market benchmark, MoneySavingExpert and RAC currently say GAP insurance typically costs around £100–£300 for three years. That is not a guaranteed price and does not represent an Insureworks quotation, so you will need an individual quote to find the premium available to you.
Is there one standard GAP insurance price?
No. GAP insurance prices can differ between providers and policies, while the type of cover, limits and terms can also vary. Make sure you are comparing the protection being offered rather than assuming two differently priced products are identical.
Is more expensive GAP insurance automatically better?
No. Price alone does not establish whether a policy offers suitable value for a particular customer. Check what the policy covers, its Maximum Benefit, duration, eligibility requirements and significant exclusions alongside the premium.
Can I cancel GAP insurance if I change my mind?
Under the Insureworks product documentation supplied for this guide, you can cancel within the 14-day cooling-off period and receive a full refund provided no claim has been made and you do not intend to make one. After that period, if no claim has been made, the relevant policy wording provides for a pro-rata refund based on the remaining period of insurance. Always check the policy documentation applying to your own cover.
How do I know whether a GAP insurance price is good value?
Look beyond the premium. Compare the type of GAP cover, what financial shortfall it is designed to address, the Maximum Benefit, policy duration, significant exclusions and eligibility conditions. Then decide whether those features make sense for what you want the policy to protect.
Get your GAP insurance price
There is no magic universal GAP insurance price hiding under the bonnet. General market figures can give you a useful starting point, but an individual quote is the only reliable way to see the premium available for the cover you are considering.
Insureworks makes the quote process straightforward and arranges GAP insurance on a non-advised basis, giving you the information you need to make your own decision. Get your GAP insurance quote to see the price and available cover for your vehicle.