What is not protected by Gap Insurance?

As with any insurance policy, it is important to understand just how you are protected. This is exactly the same as with a Gap Insurance policy, and you should not assume absolutely every item of your purchase will be covered by your policy. There are some items that are always covered by your policy, some may be depending on your insurer, and this can cause some confusion. Let's look at what you can expect from a Gap policy and the GapInsurance123 policy in particular.

What is not covered by Gap Insurance


Negative Equity - If you owe more on your old part exchange vehicle than the vehicle is worth, then sometimes the motor dealer will provide a finance package to add this amount to the new car purchase. If you do finance an amount more than the purchase price of the new vehicle, the this is called 'negative equity'. Most Gap Insurance policies will not cover this, and indeed, a standard GapInsurance123 policy would not either. However, we have recently added new options for negative equity cover, and if you would like to discuss them please feel free to contact our team on 0800 195 4926.

Road Fund Licence - If you have paid for Road Tax on the vehicle purchase then this cannot be covered by your Gap Insurance policy. If you have any outstanding road tax if the vehicle is written off, then you may be able to claim this back direct from the DVLA.

Fueling Charges - If your invoice shows a charge for fuel, then this is a consumable item and cannot be covered by your gap cover.

Admin Charges - If your dealer has charged you for 'admin' of your paperwork, such as HPI checks, then these would not be covered by our Gap products.

What might be covered by your Gap Insurance policy



Paint Protection applications - Quite often the car salesperson will offer you a paint and fabric treatment such as Supagard, Lifeshine or Gard X. These items normal cost a few hundred pounds. In the majority of Gap Insurance policies these items would not be covered, however, one huge advantage of a GapInsurance123 policy is that we can cover the cost of these popular dealer accessories.

Motor Insurance Excess
- this aspect is often covered these days, and indeed, the GapInsurance123 policy will cover up to £250 of your motor insurance excess deduction.

Nontransferable warranty plans - again the cost of this sort of item is rarely protected by a gap policy, but if the policy cannot be transferred then a GapInsurance123 policy can cover the cost of this.

The list above is by no means exhaustive, but we hope it gives you some valuable information about how your Gap Insurance cover may protect you.