GAP insurance will cover the policyholder. Usually, this person is the owner of the car, and they must have a valid UK driver’s licence and comprehensive motor insurance. Depending on the specific policy type choosen, named drivers on the comprehensive motor insurance policy may also be covered by GAP insurance.
In this guide, we’ll explain clearly who is covered by GAP, who isn’t, and how it all works in practice. GAP insurance (Guaranteed Asset Protection) is a policy designed to cover the financial shortfall if your car is written off or stolen and not recovered.
Whether you’re considering GAP insurance or have already purchased it for your car, one of the most common questions is: Who does GAP insurance cover? It’s also helpful to note who GAP insurance can’t cover to avoid ending up stranded in the gravel trap. Insurance can be complicated at the best of times, so it’s worth having a clear picture and solid understanding before hitting the road.
What Does GAP Insurance Actually Cover in the UK?
Before answering who does GAP insurance cover, it’s helpful to understand what the policy is designed to do. GAP may help protect you against depreciation. The value of your brand new car starts to drop as soon as you roll off the forecourt. If the car is written off or stolen and not recovered, standard motor insurance will only pay out the car’s value at the time of the incident.
This could leave you with a financial shortfall compared to the original purchase price. This is the case for both new and used cars, as they both depreciate. If the car was purchased on finance, the policyholder may still need to make the monthly payments, depending on the policy terms. Return to finance GAP insurance may cover the financial shortfall in situations where drivers have leased the car. But who does GAP insurance cover?
Who does GAP insurance cover?
There are several boxes you need to tick in order to be eligible for GAP insurance.
- You need a valid provisional or full UK driving licence to be eligible
- You will need to be the registered owner and/or keeper of the insured vehicle.
- You will need to be a permanent resident of the United Kingdom, Isle of Man or the Channel Islands.
- You will need to hold a comprehensive motor insurance policy
In most cases, GAP insurance will cover the policyholder. This is usually the person who owns the car or is responsible for the finance agreement. Typically, this is also the person listed on the V5C logbook and the main car insurance policy.
Other people driving the car may also be covered by the GAP policy. To be covered, they need to be named drivers on your comprehensive car insurance policy. For example, if a named driver is using your car and it is written off, your motor insurer will deal with the claim first. If there is a shortfall after that, your GAP insurance may step in to bridge the gap.
Who Does GAP Insurance Not Cover?
GAP insurance will not cover anyone driving the car under their own motor insurance policy. Any drivers with a temporary or short-term policy will not be covered by GAP either.
Some policies also exclude vehicles used for hire and reward, such as taxis or delivery driving, unless this has been specifically agreed. Any cars used for road racing, rally driving, or competitive events will also not be eligible for GAP insurance. It is always worth checking the policy terms before buying GAP, as some may vary.
FAQs about GAP Insurance Cover and Eligibility
We know you might have questions about who does GAP insurance cover and eligibility. The following FAQ section is a clear, no-nonsense breakdown to help you see exactly where you stand and whether you’re covered when it matters most.
Does GAP insurance cover named drivers?
Yes, named drivers on the GAP insurance policyholder’s comprehensive motor insurance policy are covered. The main insurer will handle the claim first, with GAP covering any financial shortfall.
Who is eligible for GAP insurance in the UK?
A person needs a valid and full UK driver’s licence, be a permanent resident of the United Kingdom, Isle of Man or the Channel Islands and hold a comprehensive motor insurance policy.
Does GAP insurance cover any driver?
No, GAP insurance doesn’t cover any driver using the specific car. Only the policyholder and any named drivers on that person’s main motor insurance are typically covered. This means you can’t just let anyone have a go in your fancy new motor without risking it.
What does GAP insurance not cover?
GAP insurance will not cover any temporary drivers, separate insurance policies, hire-and-reward use, or competitive driving.
For those who want to consider their options, InsureWorks makes it simple to compare GAP insurance quotes. It’s really easy to get a quote with Insureworks. We arrange GAP insurance on a non-advised basis as an appointed representative of Your Company Matters Ltd. Policies are underwritten by a panel of insurers (shown at the quote stage).