GAP INSURANCE

AMONG the extras dealers will try to sell you when buying a new car is GAP insurance. This is short for guaranteed asset protection, and covers potential shortfalls following an insurance claim if your car is written off or stolen. It’s not essential or a legal requirement.

You will only usually be covered by your normal car insurance for the replacement value of the car, which will be less than the price you paid for it new. GAP insurance tops up the shortfall so you can buy new again, or at least pay off the finance.

There are three main types of GAP cover: back to invoice pays the difference between the price you