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Cover the full replacement cost of your vehicle in the event of write off.

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What is Replacement GAP insurance?

GAP insurance policies don't come much better than this.

Replacement GAP insurance is the highest level of GAP insurance cover available today. It's a combination of the three main types of GAP insurance: Finance GAP insurance, Invoice GAP insurance and Replacement GAP insurance - which means it provides the best of all cover levels.

In the event of your vehicle being declared a Total Loss (written off) through accident, fire, theft, or flood, Replacement GAP insurance aims to pay the difference between your Motor Insurance payout and THE GREATER OF either:

  • The amount (if any) outstanding on finance at the time of claim EXCLUDING any Negative Equity brought forward from a previous vehicle (unless the optional "Negative Equity Cover" was purchased), OR
  • The ORIGINAL PURCHASE PRICE that you paid for your vehicle first time around, OR
  • The cost of REPLACING YOUR VEHICLE with a brand new version of the same (or nearest equivalent) as your original vehicle - even if the replacement vehicle cost is MORE than you bought the vehicle for first time around.

Brand New Vehicles Only

If the original vehicle was brand new, the replacement vehicle price at the time of claim will be calculated based on the price of a brand new version of the same (or nearest equivalent) vehicle - even if the new vehicle costs more than you paid for your original vehicle!

Backed Up By Invoice Price Protection:

Wha's more, is that our Replacement GAP insurance policies are backed up by what we call, "Invoice Price Protection". This means that if the Replacement Vehicle price at the time of claim has fallen LESS than you bought the original vehicle for, the policy will revert to an Invoice GAP insurance cover-level, ensuring that unlike some other Replacement GAP insurance policies available elsewhere that would only pay out to the then lower cost of the Replacement Vehicle at the time of claim, our policy will always aim towards the higher of the two figures.

Am I Eligible For Replacement GAP insurance?

You can buy Replacement GAP insurance to cover a New car that:

  • Is covered by a comprehensive motor insurance policy.
  • You are the very first and only registered keeper of.
  • Is less than three (3) months old at the start date of this policy.
  • You have not yet taken delivery of or, you took ownership/delivery of within the last 3 months.
  • You have NOT changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
  • Has not been declared a Total Loss before the start date of this policy.
  • Is registered in the UK.
  • Was bought for no more than £150,000.
  • Is not a commercial vehicle.
  • Is not being used for rallying, racing, any competitive events or for emergency use or hire (including private hire, taxis and chauffer) or for driving school tuition.
  • Is not already covered by a GAP insurance policy.
  • Was bought cash outright, personal loan (secured or not), or financed by way of a HP, PCP or Conditional Finance Agreement.
  • Is not a specifically excluded vehicle.
  • Is not a van, car derived van, motorcycle, motorhome or campervan.

So long as you:

  • Are a permanent resident in the UK or a UK registered company.
  • Bought the vehicle from a VAT registered motor dealer.

You can NOT buy Replacement GAP insurance for a vehicle that:

  • Is not covered by a comprehensive motor insurance policy.
  • You are not the very first registered keeper of.
  • Is more than three (3) months old at the start date of this policy.
  • You took ownership/delivery of more than 3 months ago.
  • You have changed in any way from the vehicle manufacturer's standard specification, unless the vehicle has been modified for mobility purposes. This would include changes to the bodywork, such as spoilers or body kits, changes to the suspension or brakes, and changes affecting performance such as engine management. Graphics applied to your vehicle are acceptable.
  • Has been declared a Total Loss before the start date of this policy.
  • Is not registered in the UK.
  • Was bought for more than £150,000.
  • Is a commercial vehicle.
  • Is used for rallying, racing, any competitive events or for emergency use or hire (including private hire, taxis and chauffer) or for driving school tuition.
  • Is already covered by a GAP Insurance policy.
  • Is the subject of a Contract/Lease Hire Agreement.
  • Is a van, car derived van, motorcycle, motorhome or campervan.
  • Is a specifically excluded vehicle.
How Replacement GAP insurance Works

How does Replacement GAP insurance work?

In the event of your vehicle being declared a Total Loss (aka "written off") as a result of an accident, fire or theft, your comprehensive Motor Insurance policy would normally only pay out the market value of the vehicle at the time of loss.

Now, imagine that you'd bought the vehicle brand new, two years ago for £20k, it's now been written off and your Motor Insurer is only prepared to pay out £10k. This would leave you £10k short of being able to buy the same (or nearest equivalent) vehicle, brand new today. But not only that, imagine that the brand new vehicle today is on sale for £2k more than you originally bought your vehicle for.

In this scenario you'd have a "gap" of £12k - this being the difference between your motor insurance payout and the £22k cost of replacing the vehicle new-for-old today. Replacement GAP insurance would aim to pay this £12K.

Key Features of Replacement GAP insurance

  • Combined Finance, Invoice & Replacement GAP - Covering up to the greater of either the outstanding finance, original invoice price or replacement vehicle price
  • Available for Cars, up to 90 days old, purchased from an authorised dealer or finance house.
  • NO Market Value clauses.
  • Ability to cancel the policy at any time and receive a daily pro-rata refund of unused premium (a cancellation fee may apply)
  • CASH payout to you rather than to a nominated dealer, leaving you free to choose the provider of your replacement vehicle
  • Available for Cars bought for up to £150,000.
  • OPTION to include cover for up to £2,000 of negative equity brought forward from your previous vehicle.
  • Underwritten by DTW 1991 Underwriting Limited on behalf of Syndicate DTW1991 at Lloyd's.
  • Pays up to £250 towards the excess on your Comprehensive Motor Insurance policy.
  • FREE transfer of any unused premium on to a new policy on a replacement vehicle.
  • NO right to revalue the purchase price of your vehicle at the time you bought it.
  • Policy durations of up to 4 years available.
  • Claim Limits of up to £75,000 available.
  • FREE policy amendments.

What Claim Limit Do I Need?

The most frequently asked question... The honest answer, is that it very much depends how much your vehicle is going to depreciate by over the duration of the Replacement GAP insurance policy.

Guess!

Considering that nobody knows for sure how much your vehicle is going to depreciate, it's a little bit of guess work. A common perception is that the average vehicle will depreciate by between 40% and 70% over a three year period; and indeed lots do - it's not a bad starting point for selecting a Claim Limit.

The issue with this perception though, is that it's never a steady rate of depreciation. Vehicles depreciate faster (a greater %'age) in their earlier years (in terms of the age of the vehicle) than they do in their later years. So, whilst your vehicle might well only depreciate by say 50% over a 3 year duration, it could well be that perhaps 30% (or more) of that, was in the first year alone!

When choosing a Claim Limit for any GAP insurance policy, you have to try to predict the potential depreciation over the entire duration of the policy. If, for example, for a £15,000 vehicle you chose a 3 year policy with a Claim Limit of £5,000 (33%), this may well be sufficient for the first year, but with the potential for the vehicle to depreciate by up to 50%, 70% or even more, a £5,000 Claim Limit would likely be woefully inadequate as you approach the end of the policy.

The Replacement GAP insurance Difference.

Let's not forget too that Replacement GAP insurance needs to factor in the potential for the replacement cost of the new vehicle being more expensive than the original purchase price paid. This could be for a number of reasons such as the same level of discount that you originally enjoyed no longer being available or just that the Manufacturer has increased the price of the equivalent vehicle full stop!

The point, is that when choosing a claim limit for a Replacement GAP insurance policy you need to be considering both ends of the scale. Firstly, by how much will your vehicle depreciate over the lifetime of your Replacement GAP insurance policy. Secondly, by how much (if any) will the cost of replacing your vehicle with a new equivalent increase over the same period.

Still guessing?

But this is all still guess work. We want to flip it on it's head a little. Read on...

10 Of Our Replacement GAP insurance Claims - What claim limit would you have chosen?

What we're showing you below are details of actual claims that have paid out on our policies, along with the vehicle details including the original purchase price and the length of ownership.

From this, we can calculate the rate of depreciation as a cash value per month and also reflect the total depreciation over the same duration as a percentage of the original purchase price.

You might be surprised at how well (little depreciation) some vehicles performed and how bad (considerable depreciation) others did.

It makes for some very interesting reading, but that aside, whilst it doesn't entirely remove the element of guess work for you, we're confident that being able to see the vehicle types, values and durations of ownership alongside the payout/depreciation figures, will surely be of great help in you choosing a claim limit that you feel most comfortable with.

Mazda CX-5

Mazda CX-5
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
December 2016
£30,834
September 2019
£15,205
Length of ownership:
33 Months
Rate Of Depreciation:
An average of £460.76 per month*
Total Depreciation:
49.31% of its original Invoice Price during the 33 months it was owned.*
Policy Cost:
The policy cost £189.05 (just 1.24% of the amount the policy paid out.)

Jaguar XF

Jaguar XF
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
March 2017
£26,000
September 2019
£11,250
Length of ownership:
30 Months
Rate Of Depreciation:
An average of £375.00 per month*
Total Depreciation:
43.27% of its original Invoice Price during the 30 months it was owned.*
Policy Cost:
The policy cost £194.21 (just 1.73% of the amount the policy paid out.)

BMW 5 Series

BMW 5 Series
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
July 2017
£21,370
September 2019
£6,850
Length of ownership:
26 Months
Rate Of Depreciation:
An average of £263.46 per month*
Total Depreciation:
32.05% of its original Invoice Price during the 26 months it was owned.*
Policy Cost:
The policy cost £274.35 (just 4.01% of the amount the policy paid out.)

BMW 1 series

BMW 1 series
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
March 2018
£11,000
August 2019
£4,195
Length of ownership:
17 Months
Rate Of Depreciation:
An average of £246.75 per month*
Total Depreciation:
38.13% of its original Invoice Price during the 17 months it was owned.*
Policy Cost:
The policy cost £171.39 (just 4.09% of the amount the policy paid out.)

Kia Picanto

Kia Picanto
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
September 2014
£9,493
August 2019
£7,780
Length of ownership:
59 Months
Rate Of Depreciation:
An average of £131.86 per month*
Total Depreciation:
81.96% of its original Invoice Price during the 59 months it was owned.*
Policy Cost:
The policy cost £240.00 (just 3.08% of the amount the policy paid out.)

BMW 4 SERIES

BMW 4 SERIES
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
January 2018
£34,384
August 2019
£13,430
Length of ownership:
19 Months
Rate Of Depreciation:
An average of £706.84 per month*
Total Depreciation:
39.06% of its original Invoice Price during the 19 months it was owned.*
Policy Cost:
The policy cost £195.00 (just 1.45% of the amount the policy paid out.)

Seat Ibiza

Seat Ibiza
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
October 2017
£15,221
August 2019
£3,869
Length of ownership:
22 Months
Rate Of Depreciation:
An average of £175.86 per month*
Total Depreciation:
25.42% of its original Invoice Price during the 22 months it was owned.*
Policy Cost:
The policy cost £124.05 (just 3.21% of the amount the policy paid out.)

Vauxhall Mokka

Vauxhall Mokka
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
May 2016
£15,378
July 2019
£7,549
Length of ownership:
38 Months
Rate Of Depreciation:
An average of £198.65 per month*
Total Depreciation:
49.09% of its original Invoice Price during the 38 months it was owned.*
Policy Cost:
The policy cost £171.28 (just 2.27% of the amount the policy paid out.)

BMW M3

BMW M3
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
February 2016
£24,500
June 2019
£12,450
Length of ownership:
40 Months
Rate Of Depreciation:
An average of £311.25 per month*
Total Depreciation:
50.82% of its original Invoice Price during the 40 months it was owned.*
Policy Cost:
The policy cost £297.51 (just 2.39% of the amount the policy paid out.)

Ford Galaxy

Ford Galaxy
Vehicle Purchased
Invoice Price
GAP Claim
GAP Payout
November 2018
£21,300
June 2019
£870
Length of ownership:
7 Months
Rate Of Depreciation:
An average of £124.29 per month*
Total Depreciation:
4.08% of its original Invoice Price during the 7 months it was owned.*
Policy Cost:
The policy cost £197.55 (just 22.71% of the amount the policy paid out.)

* - The Replacement GAP insurance rates of depreciation figures shown above reflect not only the depreciation of the original vehicle, but also the potential for the cost of the replacement vehicle to have been greater than the original purchase price paid.