Your Gap Insurance questions answered

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We have 1000's of happy customers, why should you use us? Here are just a few reasons.

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Read our frequently asked questions below

The following questions and answers relate to the terms and conditions of policies available today. If you purchased a policy prior to today, please refer to the policy terms and conditions or call us during business hours.


Why buy from car2cover?

Thousands of customers every year have been choosing car2cover to provide them with Gap, Tyre, Alloy wheel and Scratch & Dent Insurance since 2007.

We are authorised and regulated by the Financial Conduct Authority and all policies are covered under the Financial Services Compensation Scheme. We have over 40 years experience and choose our insurer’s carefully with policies designed to work in the way we know they should and not designed simply with price compromises in mind.

All insurance products on this website are underwritten by Great Lakes Reinsurance SE. Great Lakes Reinsurance SE is a fully owned subsidiary of Munich RE Group and is a specialist provider of insurance services. Great Lakes Reinsurance SE enjoys the same strong ‘A’ rating and financial strength as Munich RE Group.

We avoid unrated small overseas insurers because a number have become bankrupt in recent years. According to the Financial Services Compensation Scheme website, five have failed since 2016 as shown on this list published on


Why are car2cover so much cheaper than my dealer?

Your motor dealer’s Scratch & Dent Insurance policy is normally offered at a much higher premium than you will find at

The are many reasons for this. The motor manufacturer and motor dealer include a profit, the salesman is paid commission and motor dealers can only sell a limited number of policies due to its limited number of customers.

As an online business, we sell ‘substantially’ more to a national audience – and high volumes of business results in lower premiums. To help boost vehicle sales, motor dealers offer discounts and other financial incentives. To help recover the cost of those incentives, they charge excessively for Gap Insurance and other products such as paint and upholstery treatments, Tyre Insurance, Alloy Wheel Insurance and Scratch and Dent Insurance.

Play smart, take the discount and buy your insurance products cheaper elsewhere!


What cancellation options do I have?

All insurances arranged by our business are covered by a 30 day money back guarantee.

Providing a claim has not been submitted during this period, you may cancel your insurance within 30 days of policy purchase and receive a full refund.

Beyond the initial 30 day cooling off period, our policies provide the option to cancel cover with either a ‘credit’ (no cancellation fee) or ‘refund’ (after cancellation fee is deducted) - please refer to the policy terms for full details.


Are Gap Insurance policies renewable?

No. Gap Insurances end when the policy expires. Our insurer offers 1 to 5 year periods of cover and therefore it is important to ensure that you choose the correct period of cover when you buy the policy.


My insurer offers 'New for Old' cover - can I defer buying Gap Insurance?

All Gap Insurance policies must be purchased within 180 days of the vehicle purchase/invoice date.

If your motor insurer provides ‘new for old’ cover, you may buy the Gap Insurance policy within the 180 day period but choose to defer the policy start date*. The Gap Insurance must start before or up to 1 year after the date of vehicle first registration. If you are considering deferring your Gap Insurance policy, we strongly suggest you read our article on deferring Gap Insurance.

* Excludes Finance Gap and Agreed Value Gap Insurance.


Return To Invoice Gap Insurance vs Vehicle Replacement Gap?

Most motor dealers offer Return To Invoice Gap Insurance, which in the event of a total loss (fire, theft or accident) will ‘top up’ what your fully comprehensive motor insurer agrees to pay, up to the original vehicle invoice price. So as an example, if a car was purchased from a dealer for £25,000 and at the time of the write-off the fully comprehensive motor insurer agrees to pay £15,000 - the Return To Invoice Gap will pay £10,000.

The Vehicle Replacement Gap Insurance is a more comprehensive form of Gap Insurance cover and not only covers the original vehicle invoice price (like the Return To Invoice Gap Insurance above) but will also consider the cost of replacing the vehicle on a like for like basis (matching the same vehicle age, mileage and specification the day you took delivery) and will cover any increase in the cost to replace the vehicle. So if the £25,000 car now costs £28,000 to replace, the Vehicle Replacement Gap will top up what the motor insurer agrees to pay back up to the £28,000 that is needed to replace the vehicle. Reasons the cost of a replacement vehicle may increase include;

> Your car was discounted and you can no longer get the same level of discount,
> The model has been upgraded or superseded,
> The manufacturer has increased prices.

Both the Return To Invoice and Vehicle Replacement Gap Insurances pay the shortfall to the policyholder. If you have finance outstanding on the vehicle, this will be paid off first and any surplus is paid to the policyholder.


Who should be the Gap Insurance policyholder?

For vehicles that are financed or leased - the Gap Insurance policyholder must be the person named on the finance/lease agreement - and they must be insured at all times under a motor insurance policy either as the main or named driver.

For vehicles that have been purchased outright by cash/card or on a personal loan, the Gap policyholder must the the V5 Registered Keeper of the vehicle and they must be insured at all times under a motor insurance policy either as the main or named driver.


Are additional drivers covered?

Yes, providing they are named on your fully comprehensive insurance policy.


Is there an excess to pay?

No, there is no excess on the Gap Insurance policy - in fact, our Gap Insurance policies contribute up to £250 towards your motor insurer's excess!


Does the Gap Insurance policy cover theft of vehicle?

Yes, providing your motor insurer policy covers you and you have taken reasonable precautions to secure the car! Our policies do not exclude vehicles that have been stolen with use of the keys as professional thieves can often first steal the keys in order to steal the car.


Do I have to have fully comprehensive insurance?

Gap Insurance supplements your motor insurer’s payout in the event of a write-off/total loss so you must have fully comprehensive insurance in place at all times. If your motor insurance policy is for third party, fire and theft insurance, you can only make a claim on this insurance for total loss due to fire or theft.


Will my Gap Insurance policy help pay off my outstanding finance?

Finance & Contract Hire, Return To Invoice and Vehicle Replacement Gap Insurance policies all provide protection for those who have finance secured against the vehicle. Any 'Negative Equity' carried across from a previous vehicle (ie a car you have part exchanged) will not be covered.


Can I cover the advance rentals I paid on my Contract Hire agreement?

You have the option to include cover to protect the initial rentals paid to the leasing/contract hire company. Our policy allows you to choose protection for 3, 6 or 9 months advance rentals which will be paid to the policyholder on settlement of a claim. This option is only available on vehicles that have been acquired on a Lease/Contract Hire agreement and cover can be included or excluded during the quote process.


Am I covered whilst driving abroad?

Yes. The Gap policies cover England, Wales, Northern Ireland, Scotland, Isle of Man and the Channel Islands.

Cover also applies to member countries of the European Union and any other country for which an international motor insurance certificate is effective on your vehicle at the point of total loss - up to 120 days in any one trip.


How quickly will my claim be paid by the Insurer?

Subject to receiving all necessary information and supporting documentation, your claim will normally be settled within 10 working days. Where applicable, any finance settlement will be made directly to the finance company on your behalf and the balance paid to you within 10 days.


Is there a maximum claim limit on your Gap Insurance policy?

For vehicles with a purchase price up to £75,000.00 there is NO MAXIMUM claim limit on the Gap Insurance policy - these are known as 'unlimited' claim limit policies.

For vehicles over £75,000.00 a claim limit will apply - you can choose your preferred level when building an online quote and we offer up to a maximum of £50,000 claim limits.


Are there any vehicles you cannot cover?

Our policies will cover most vehicles that have been purchased from a VAT Registered dealer within the last 180 days, providing they are less than 10 years old with less than 100,000 miles at the time of purchasing the Gap policy.

The vehicle must be listed in Glass's Guide and have a purchase price below £125,000.00.

We cannot provide cover for vehicles that are - purchased from an auction, kit cars, invalid carriages, motorhomes, commercial vehicles more than 3500kg gross weight, American/Canadian/Australian vehicles (unless built for the UK market), minibuses with over 19 seats, used for road racing/rallying or any other competitive event and vehicles owned by a business formed for the purpose of selling or servicing motor vehicles (motor trade policies).