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Finance Gap Insurance

Helpful information on how it works, who can it help, claim examples and full terms and conditions.

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How this works

In the event of a write-off, Finance Gap Insurance will 'top-up' what your motor insurer agrees to pay - up to the sum required by your HP or PCP lender to end your agreement.

This is a simple and most basic Gap Insurance designed to help end your debt if a write-off occurs.

Who this might help

Finance Gap Insurance is available for dealer supplied new and used vehicles, purchased with a dealer arranged HP or PCP agreement. Cover is available for vehicles less than 10 years old and under 100,000 miles at the start of the policy.

These are multi-year policies that cannot be renewed, extended or purchased again on expiry.

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A Typical Example

Let's assume you have purchased a car for £20,000.00. Two years later, it's stolen and not recovered. Your insurer agrees to pay the market value of £13,000.00. 

Let's also assume, at the time of write-off, you owe your HP or PCP lender £15,000.00 - leaving you with a £2,000.00 debt. In this example, Finance Gap Insurance will pay the extra £2,000.00 you need to settle your finance.


A write-off can be caused by theft, accident, fire or flood.

How Financed Vehicles Are Covered

Finance Gap Insurances covers dealer or broker arranged Hire Purchase (HP) and Personal Contract Plans (PCP).

Finance Gap does not cover self-arranged personal loans such as bank or building society loans. Finance Gap is not suitable for Contract Hire or Finance Lease agreements, these require a specific cover called Contract Hire and Finance Lease Gap.


All of the above are simple summaries and all insurances are subject to terms and conditions which can be found above.

You may have more than one Gap Insurance to choose from..
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