GAP Insurance

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Office Opening Hours: 8.30am to 6.30pm Monday to Friday, Saturday 9am to 2pm. Closed Bank Holidays.

Frequently Asked Questions

  • Why do I need GAP Insurance?

    GAP Insurance is designed to protect you against financial loss.

    In the event of a total loss your comprehensive insurer will only pay you market value for your vehicle at the time of a total loss. This may leave you exposed to any remaining finance settlement charges or the substantial loss suffered with the vehicle value depreciation. This can be covered by purchasing GAP insurance.

    If your vehicle is on contract hire or a non-regulated purchase agreement, you may be faced with a bill of up to 100% of the outstanding payments if your vehicle is written off. You can again protect yourself against this with a GAP insurance policy.

  • How much cover do I need?

    Based on average figures you could assume that a 2 year old vehicle would be worth about 65% of its original value, a 3 year old vehicle 45% - 50% and for 4 years you could assume 35%-45%.

    When getting a quote our system suggests a "GAP Claim Limit" on this basis.

    If the vehicle is on a lease or contract hire agreement, it is worth checking with the leasing company their policy on charges if the contract is terminated due to a total loss. Many leasing companies charge 50%-60% of outstanding rentals whilst some will charge you 100% of outstanding rentals.

  • I own the vehicle and have it insured in my name but my husband is a named driver. Is he covered?

    Our GAP Insurance Policies cover all named drivers on your motor insurance policy.

  • I'm looking at a Back to Invoice Plus quote. What does "Invoice price including deposit" mean? What should I include in this?

    A Back to Invoice Plus quote is based on the price you're paying for the vehicle.

    For this reason use the cost of the vehicle itself including manufacturer fitted extras and dealer fitted extras (as long as these are on the manufacturer price list and appear on the vehicle purchase invoice).

    Include within this any deposit or trade in you have made against the purchase but use the price of the vehicle after deducting any dealer of manufacturer discount.

    You don't need to include any interest or charges relating to your finance agreement, if you have one.

    Other add ons and on-the-road costs like extended warranty, service plan, paint/upholstery protection, delivery charge, first registration fee, road fund licence or fuel are not included as part of the price of the vehicle.

    If you would like any assistance with a quote please contact our team on 01653 916304.

  • I'm looking at a Vehicle Replacement Plus quote. What figure do I use as my purchase price?

    This should be the price of your vehicle before deducting any discounts you have received from the dealer or manufacturer. These are sometimes VAT free offers or shown on your invoice as a deposit contribution. For new vehicles you can use the list price and include any factory or dealer fitted extras.

    If the vehicle is pre-registered you would use the net price for the vehicle rather than the list price. If you have had any extra discounts these can be added back on.

    If you would like any assistance with a quote please contact our team on 01653 916304.

  • I have a contract hire vehicle and would like a quote. What figures should I use for the Contract Hire Plus policy?

    For "Cost of vehicle" you should enter the estimated list price of the vehicle and select the term of cover you wish to take.

    The system will automatically suggest a claim limit but this can be tailored further to suit your needs, based on the total amount you will be paying over the term of the contract.

    If you would like any assistance with a quote please contact our team on 01653 916304.

  • Who is the underwriter?

    All of our GAP insurance policies are underwritten by UK General Insurance Limited acting on behalf of Great Lakes Insurance SE.

    Great Lakes Insurance SE is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

  • I own the vehicle but I am not the main user on the insurance policy, in whose name do I apply for GAP?

    The applicant for the GAP policy should be the owner or registered keeper, or the person financing the vehicle on behalf of the owner or registered keeper.

    The person named on the GAP policy must have a valid driving licence.

    The vehicle must also be insured fully comprehensively but this does not have to be in the name of the GAP policy holder.

  • Which policy should I buy if my vehicle is on finance?

    If the vehicle has been bought on a purchased-based finance arrangement (Hire Purchase or Personal Contract Purchase) Back to Invoice+ or Vehicle Replacement + would be appropriate.

    Back to Invoice+ will cover the difference between your motor insurer's settlement and either your invoice price or outstanding finance - whichever is greater at the time of a write off.

    The Vehicle Replacement + policy would pay the difference between your motor insurer's settlement and either the replacement cost of a vehicle of the same make, model, age and specification as the original or the outstanding finance, again whichever is greater at the time of a write off.

  • What is the difference between Back to Invoice Plus and Vehicle Replacement Plus?

    Back to Invoice Plus will cover the difference between your motor insurer's settlement and either your invoice price or outstanding finance - whichever is greater at the time of a write off.

    The Vehicle Replacement Plus policy would pay the difference between your motor insurer's settlement and either the replacement cost of a vehicle of the same make, model, age and specification as the original vehicle or the outstanding finance, again whichever is greater at the time of a write off.

  • When do I have to take out a GAP Insurance policy?

    You must apply for a policy within 365 days of delivery of your vehicle. Please note that this is the case even if your comprehensive motor insurer offers new-for-old replacement in the first year.

    If you purchase a GAP policy and, following a write off in the first year, your insurer pays the new-for-old cost (not just market value) we will transfer the whole policy to your replacement vehicle free of charge.

  • I own my vehicle outright, which GAP Insurance do I apply for?

    If your vehicle is new or up to 10 years old and it was purchased within the last 365 days we are able to offer you Vehicle Replacement+ Insurance (for vehicles with less than 80,000 miles on the clock) or Back to Invoice + (no mileage restriction).

    The Vehicle Replacement policy covers the difference between your motor insurer's settlement and the replacement cost of a brand new car, if your car was new at the time of purchase. Alternatively, if your car was not brand new, it covers the difference up to the cost of a vehicle which matches the age of the car that you originally insured.

    The Back to Invoice + policy pays the difference between your motor insurer's market value settlement and your original invoice price.

  • Am I covered for theft if my vehicle is stolen with the keys?

    This is an important question.

    We rely on your motor insurer to provide cover and as long as they do, so do we. For example your insurer may not settle or may significantly reduce your settlement if your vehicle is stolen with the keys as a result of your negligence i.e. the keys are left in the vehicle whilst de-icing or paying for fuel. If this is the case your GAP insurance cannot settle.

    If your keys are stolen from your house or bag your insurer would be likely to make a settlement. In this scenario your GAP policy will still pay the difference between their settlement and either the invoice price, replacement vehicle cost or outstanding finance, depending upon the type of policy you have.

  • Will my comprehensive insurance company pay off the finance if my vehicle is written off?

    Your primary insurer will normally pay you the current market value of the vehicle and that is all. This may not be enough to cover the finance settlement figure on your vehicle.

    If you have GAP insurance this will cover any shortfall (up to the maximum claim limit) up to the invoice price, replacement cost or outstanding finance on your vehicle in the event of a total loss, depending upon the type of cover you have with us.

  • Is my GAP Insurance protected?

    The insurer of these policies, UK General Insurance Limited acting on behalf of Great Lakes Insurance SE, is authorised and regulated by the Financial Conduct Authority (FCA) and your policy is protected under the Financial Services Compensation Scheme.

  • I bought my vehicle from a private individual, can I still have GAP insurance?

    As part of our Back to Invoice Plus policy, if you have bought your vehicle from a private seller and do not have a VAT invoice, the GAP policy will pay the difference between the Comprehensive Insurance settlement and the Glass Guide retail value of your vehicle at the time the policy is purchased.

  • I bought my vehicle more than 180 days ago, can I still buy GAP Insurance?

    Yes you can essentially the sooner you buy the policy the sooner you are covered but we have the facility to offer policies for vehicles that have been owned for up to 365 days.

  • Is my vehicle covered for GAP Insurance if I take the vehicle abroad?

    Yes, provided your motor insurer extends fully comprehensive cover to Europe (rather than the minimum insurance requirement for that country which, can sometimes be third party only) and you comply with any restrictions your Fully Comprehensive Policy enforces for a UK registered and domiciled vehicle, then the GAP Insurance will be valid.

    Please note that GAP Insurance only pays out if the primary insurer accept the insured loss under a fully comprehensive policy.

  • Is there anything which shouldn't be included in the invoice price and so would not be covered by the ALA GAP policy?

    There are some things we are unable to cover which includes, but is not limited to: delivery cost, first registration fee, extended warranty charges, insurance products, administration fees, road fund licence and paint/upholstery protection.

    If you would like further advice about whether to include something in the vehicle price then please call us on 01653 916304.

  • Is Finance GAP the same as Contract Hire GAP?

    This depends on the supplier but you really need to double check the small print. Our Contract Hire+ GAP specifically covers up to 100% of outstanding rentals and any potential shortfall in residual value.

  • Is the figure quoted a one off payment or an annual premium?

    The figure quoted is a one off payment and represents the total cost for the policy.

  • Does the GAP policy cover my road tax in the event of a total loss?

    A GAP policy isn't designed to refund road tax. There is no need for it to do so as it would be refundable pro-rata by the DVLA if your vehicle is written off.

    If your vehicle is declared a total loss by your insurer you need to send section 9 of the vehicle log book to the DVLA. You will then receive an automatic refund in the form of a cheque within 4 weeks.

  • What vehicles are excluded on your policy?

    We cannot cover any, taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle.

    We also cannot cover vehicles used in any sort of competitions or rallies, used for racing, pace making, speed testing or in reliability trials.

    We cannot cover vehicles not listed in Glass’s Guide e.g certain imported vehicles, left hand drive vehicles; kit cars; invalid carriages; commercial Vehicles of more than 3500kg gross weight; or American, Australian and Canadian Vehicles unless they were built for the UK market. .

    If you are uncertain about your vehicle eligibility please contact us on 01653 916304 and one of our team would be happy to help.

  • Is my GAP insurance policy protected if the insurer goes bust?

    The insurer of these policies, Great Lakes Insurance SE , is authorised and regulated by the Financial Conduct Authority.

    If the underwriter is unable to meet its obligations under this insurance you may be able to claim compensation under the the Financial Services Compensation Scheme (FSCS). The first £2000 of a claim is protected in full.

    For amounts above this threshold, 90% of the remainder will be met.

  • My vehicle is going to have a private plate - when should I buy the GAP insurance?

    You can still purchase the GAP insurance immediately. Simply fill in the order form using the original plate on your vehicle.

    Once your private plate is fitted to the vehicle please contact us on 01653 916304 or send an email to and we will update your details free of charge.

  • Which GAP insurance should I buy if my van is on finance?

    If your van is on hire purchase or PCP finance, where you can choose to own it at the end of the term, or you do so automatically when the last instalment has been paid, then Commercial Back to Invoice + or Commercial Vehicle Replacement + would be suitable for you.

    Alternatively, if the van is on a lease or contract hire agreement, where there is no option to purchase at the end of the term, you would need to select Commercial Contract Hire +.

  • I bought my van privately, can I still have GAP insurance?

    Yes, this would be covered under our Back to Invoice + policy. However, as you would not have a VAT invoice for the amount you have paid, the policy covers the difference between your motor insurer's settlement and the Glass's Guide value at the time of purchase.

  • Is Agreed Value GAP the same as Comprehensive insurance?

    No, Agreed Value GAP (AVG) is not motor insurance for the purposes of the Road Traffic Act.

    Our Agreed Value GAP has now been added to our Back to Invoice + policy. This means that, if you do not have a VAT invoice for your vehicle because it was purchased from a private seller, we will cover the difference between your comprehensive insurer's settlement and the Glass's Guide value of your vehicle at the time of purchase, in the event of a total loss.

  • Do you cover refrigerated vans?

    Yes - we cover a wide variety of commercial vehicle as long as they are not specifically excluded by the policy terms and conditions.

  • Does the £250 contribution to my Comprehensive Insurance excess pay out on every claim that I have?

    No, the limit of £250 is only paid out in the event of total loss claim.This is a maximum amount so if your excess is £150 we would pay you £150.

  • Is there a minimum age I can buy GAP Insurance?

    You must be seventeen years of age with a provisional or full driving licence and covered by a fully comprehensive insurance policy.

  • Do you cover negative equity?

    Negative equity in this context specifically means a finance balance for a previous car which has then been added to a new finance agreement for a new car.

    Our policies do not cover negative equity, we can only provide cover for for the finance relating to the current car, not finance carried over from a previous agreement.

    If you have any questions about this please contact one of our team on 01653 916304

  • Will my GAP insurance pay out if I am hit by an uninsured driver?

    A requirement of the GAP insurance policy is that your motor insurer must make a market value settlement in the event they write your vehicle off. Provided they do so, and you can provide us with the few pieces of documentation we need for the GAP claim procedure, then we will also make a settlement.

    If for any reason your motor insurer does not settle then the
    GAP policy cannot settle in these circumstances.

  • My Comprehensive Insurer is offering me a 'new for old' replacement for the first year, why do I still need GAP insurance in the first year?

    Our GAP insurance policies must be purchased within 365 days of you taking possession of the vehicle. Whilst this may seem like you are duplicating cover, if your vehicle is written off in the first year we will transfer the balance of your original policy on to your replacement vehicle.

    Please consider the possibility that there may be instances where your insurer reduces your settlement to market value only. This can be for various reasons including exceeding the annual mileage limit pro rata, the condition of the vehicle, if the vehicle has been stolen rather than being involved in an accident or if a replacement vehicle cannot be sourced with a certain number of weeks of the incident.

  • Some competitors of ALA will defer the start of a GAP policy for the first year to coincide with my comprehensive insurer's offer of a 'new for old' replacement for the first year - why doesn't ALA?

    If your GAP policy is deferred for 12 months and you have a total loss claim, your motor insurer may refuse to replace new for old due to one or more of the terms and conditions of the policy not being met. It is then very unlikely that the deferred GAP Insurance policy will activate either - leaving you with no GAP cover whatsoever!

    However, you can still purchase GAP insurance from ALA for up to 365 days after taking delivery of your vehicle. Deferring the GAP policy means you have to pay for it upfront, despite not having the cover for up to another 12 months.

  • Are there any instances where GAP insurance doesn't pay out?

    If your motor insurer refuses your claim for any reason then the GAP insurance will not settle.

    Also if your insurer offers you a new-for-old replacement vehicle which you refuse your GAP policy will not pay out.

  • I bought my vehicle through the Motability scheme, can I buy GAP Insurance?

    It is our understanding that you may not require GAP Insurance as your vehicle is fully protected with the insurance proveded under the Mobility scheme. Please check the Mobility provider for confirmation

  • Is it free to transfer my policy should I change my vehicle within the length of the policy cover?

    Yes it is. We calculate the unused premium in your original policy on a daily pro rata basis and deduct it from the price of a brand new policy. There are no administration fees to do this, however there may be a balance to pay for the new policy.

    If there is a proportion of the original premium left after transfer this cannot unfortunately be refunded.

    This is subject to ALA's Fair Usage Terms, which means that we cannot complete a transfer in conjunction with any other offer or additional discount.

    Transfers can currently only be completed by a member of staff over the phone. Please call us on 01653 916304 for assistance .

  • What are ALA's Fair Usage Terms?

    These include, but are not restricted to the following:
    A policy may not be transferred more than twice in a 12 month period
    Multiple discount codes may not be used including cash back offers and discount codes.
    Discount codes that are not directly associated with a cash back site may not be used in conjunction for an ALA purchase.
    Our price guarantee does not extend to discounted/sale prices. In certain circumstances we may be unable to complete a price match for example where terms are incomparable.

  • My vehicle is covered by a motor trade insurance policy - can I still have ALA GAP insurance?

    We can only provide you with a GAP policy if you can confirm that your insurer will pay the market retail value of your vehicle in the event of a write off. If they will only pay trade value this would unfortunately invalidate any cover with us.

  • Do you offer normal car insurance?

    No, this isn't something we can offer.

  • Do you impose a maximum limit for factory or dealer fit accessories?

    All factory fitted extras are covered by our GAP policies.

    With regards to dealer fitted accessories, there is no limit to the value that we will cover; as long as the part appears on the manufacturer price list and is included on the vehicle invoice, we will cover the cost of that extra.

    Please note that we cannot cover the cost of any conversions or after-market modifications.

  • Who is covered by my GAP policy?

    Any person driving your vehicle is covered by your ALA GAP policy as long as they are a named driver on your comprehensive motor insurance policy.

    Anyone driving your vehicle under their own motor insurance or on a temporary/short term motor insurance policy will not be covered by an ALA GAP policy.

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