ALA Insurance

What is GAP Insurance?

GAP stands for Guaranteed Asset Protection. There are several specific types of GAP insurance but the overall purpose of this type of cover is to protect you financially in the event of a total loss claim. Whilst a large number of policies are purchased for brand new cars, GAP Insurance can be taken out on used models if desired.

Should I get GAP Insurance?

Your need for GAP Insurance entirely depends on the circumstances surrounding your purchase, and there are a number of factors to consider before taking out a policy. As a rule of thumb, the newer the vehicle you’re buying, the more you will benefit from having GAP Insurance coverage in the event of any incidents.

How much does GAP Insurance cost?

Dependent on the value of the vehicle and the term length of your finance agreement, policies range from around £100-£300 for multi-year coverage. ALA offer an online quoting tool that will clearly illustrate how much you’re being covered for and what the cost of that GAP Insurance policy would be.

What is excluded from GAP Insurance?

While there are multiple policy types, there are still instances within all of those that GAP Insurance simply won’t cover. While these obviously differ between brokers and individual policies, there are some common exclusions that it’s worth being aware of. The most important exemption – and one that is always in place – counts against those who do not have a comprehensive car insurance policy in place.

What types of GAP Insurance are there?

Like all forms of insurance, there is a variety of options available, so it’s well worth knowing which is best suited to your exact needs. Don’t rush into agreeing any cover without knowing exactly what you’re going to need. Whilst you can’t have more than one GAP policy on one vehicle, a number of suppliers provide “combined” cover which gives you better coverage and the security that you desire.