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Do You Need GAP Insurance?

21 March 2018

If your vehicle is stolen or written off due to an accident it is likely that your motor insurer will only pay the current market value for your vehicle. This amount could be less than what you originally paid for your vehicle or even less than what you still owe on finance.

With 70% of consumers leasing and financing vehicles, this is a financial risk many consumers face. Universal GAP insurance is designed to protect you against this financial shortfall.


You may not be eligible for a new replacement vehicle if:

    - your vehicle is pre-registered, i.e.. new to you but has already been registered to the dealer to reduce VAT

    - your vehicle has exceeded a certain mileage

    - you are not the owner/registered keeper of the vehicle. Consider lease agreements.

    - If current production is no longer available. Often insurers will then revert to the market value which will be significantly lower than their obligation under replacement vehicle cover.


Why should I buy GAP cover from a broker?

    - You are charged 10% insurance premium tax (IPT) opposed to 20% through a motor dealer

    - No need to cancel your GAP policy if you change your vehicle and you can change your vehicle as many times as you wish

    - In the event of a claim, Jackson Lee will assist you with verifying the value of your motor insurers claim settlement

    - No more paying for cover you don’t use. The product is annually renewable should you choose, eradicating the need to pay a lump sum upfront for a 3 year policy and runs in line with your current motor insurance

    - You are covered no matter how and when the vehicle is purchased. Motor dealers will only sell GAP at the point of sale and customers generally cannot return several months later to purchase GAP.

    - You are covered for the £250 excess in the event of a fault claim

    - Competitive pricing across all car makes, models and derivatives – available for new or used vehicles.

    - Just 3 policy exclusions and only 2 ½ pages of policy wording


This policy is underwritten by Jackson Lee Underwriting who have been accredited as the BIBA Approved Scheme provider for GAP since 2012.

You can now purchase GAP insurance for your vehicles from us at Bruce Stevenson. If you would like to get more information or obtain a no-obligation quote, please get in touch with us here.


Alexandra Richards, Private Clients Development Executive at Bruce Stevenson Insurance Brokers

Alexandra Richards

Private Clients Development Executive



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