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GAP insurance: when to buy for privately bought cars

Sales of used cars have fluctuated this past year, rising in the first quarter but falling in the second. The cost-of-living crisis has contributed to used car prices being higher than average at the moment, meaning it has never been more important to protect your investment. If you have recently bought a vehicle from a private seller, or you’re considering your options, GAP (Guaranteed Asset Protection) insurance can be a great way to protect your vehicle and your finances.

In this guide, we will explain which GAP insurance policies are available for privately bought cars, the restrictions in place, and whether GAP insurance cover is worth it. We will also explore when you can buy a GAP insurance policy, and why you should choose a policy with ALA.

Can you get GAP insurance on privately bought cars?

Buying a car from a private seller is a great option for some; you usually have more opportunities to haggle for a better deal. It can be easy to discount GAP insurance for a privately bought car, as they aren’t brand new. However, if you want to protect your investment, GAP insurance can help you out.

Agreed Value GAP insurance is the only option for privately bought vehicles. If your car is written off or stolen, GAP insurance will cover the difference between the settlement provided by your comprehensive car insurance provider and the Glass’s Guide market value of your vehicle at the time that your policy is purchased. It is also recommended that you acquire your GAP insurance policy as soon as possible, as vehicles can depreciate quickly. At the moment, used car values are unpredictable but in most cases GAP insurance will still be useful.

Agreed Value GAP is also useful if you bought your car from a garage but have run out of time to purchase it. You can find out more on our website.

Are there any GAP insurance restrictions for privately bought cars?

As mentioned in our previous guide concerning dealer-bought cars, privately bought vehicles do have restrictions when it comes to choosing a GAP insurance policy. Your vehicle must be under 10 years old, and it must have less than 100,000 miles on the clock at the time that your policy was purchased.

There are also restrictions on the type of vehicle you can buy a policy for. For instance, luxury cars such as Lamborghinis do not qualify for GAP insurance. Hire and reward vehicles such as taxis, driving tuition vehicles and courier vehicles also do not qualify.
You can find out more about overall restrictions in our previous guide here.

If you would like to discuss your GAP insurance policy before purchasing,
you can give a member of our team a call today.

Is GAP insurance worth it for privately bought cars?

For cars that qualify, GAP insurance is a great way to protect your investment. Most cars that are bought privately are purchased outright, so you can ensure that you don’t end up out of pocket if your vehicle is written off or stolen. Agreed Value GAP insurance policies also have more leeway in terms of time frames. They can be purchased at any point as long as other criteria are met, whereas policies such as Vehicle Replacement Plus have a time limit of 90 days from the day you collected your vehicle.

Agreed Value policies are also perfect if your car is a little older, but less than 10 years on the day that the policy starts. Even though your car is not brand new, it could still be worth a substantial amount of money, so it is important to protect your finances should the worst happen.

When can I buy GAP insurance?

You can acquire GAP insurance at any point for your privately bought vehicle. It is recommended that you choose your GAP insurance policy sooner rather than later, as cars depreciate as most cars will continue to lose value over time. However, values are currently fluctuating, so there is an exception for some cars.

If you would like to get started as soon as possible,
you can visit our GAP insurance quote builder here.

GAP insurance with ALA

We have various GAP insurance policies here at ALA perfectly suited to all types of vehicles that qualify. Our customer service team can answer any questions you may have about your privately bought vehicle, and whether you meet the requirements for an Agreed Value GAP policy. With a five-star Trustpilot rating, we pride ourselves on providing excellent customer service and GAP insurance policies to suit your needs.

If you would like to find out more, or to discuss your coverage and quote,
please get in touch with us today.

Common queries

Can I get GAP insurance with a 10-year-old car?

If your car is less than ten years old, then you will qualify for GAP insurance. However, if your car is exactly ten years old or older, you won’t be eligible for GAP insurance for that vehicle. However, if your car is nine years old, for example, and you buy a five year policy, your coverage will not stop when your car turns ten years old.

How do I know if GAP insurance is right for me?

Most cars lose value over time. Like all insurances, GAP insurance is worthwhile if you would not want to be worse off in the event of a claim where your car is written off of stolen. GAP insurance for privately purchased cars does this by protecting the value of your car at the point you buy your policy. If you get less than this from your insurer after a write off due to depreciation GAP insurance will cover the shortfall.

How long after buying a car can I get GAP insurance?

GAP insurance time limits differ from policy to policy. For Back to Invoice Plus (or Return to Invoice Plus), you have 180 days from when you purchased your vehicle. For Vehicle Replacement Plus, it is 90 days, and for Contract Hire Plus and Agreed Value, you have 365 days from when you collected or bought the car, respectively.

If you buy a car from a private seller you can buy an Agreed Value GAP policy at any time, as long as the car is less than 10 years old, has done fewer than 100,000 miles and isn’t otherwise excluded.

Related content

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