Is Audi GAP insurance worth it?

Audis are one of the most popular luxury car manufacturers in the UK with over 11,000 new vehicles sold between 2019 and 2023. The brand is adored for its unmatched design, technology and features, advanced performance, security, luxurious comfort longevity and brand heritage. The German manufacturer launched their first car in 1910. The sportscar launched them into the luxury car market and they have been known for it ever since.

Audi cars are sought after in the UK for their prestige. Unfortunately, this means that they are attractive to thieves too. The Audi A3, is consistently in the top ten most stolen car models, with the Audi A4 not far behind.

If your Audi gets stolen, or you write it off, you’ll only get the market value from your car insurer, which may not be enough to ensure you can pay for a replacement. That’s why GAP insurance is a smart choice for Audi drivers to cover the financial shortfall and protect their investment.

The benefits of Audi GAP insurance cover

Guaranteed Asset Protection insurance is a type of vehicle cover which protects against a financial shortfall in case your car is written off or stolen. Your comprehensive car insurance will only pay the car’s market value at the time of the incident, not its original value. Suppose, you have a new car, a fast-depreciating model or pay for the vehicle on finance or via a contract hire agreement. In these cases, you risk being out of pocket if the worst happens.

GAP insurance tops up your motor insurance settlement to help you afford your next vehicle, regardless of how you paid for your previous car.

What happens if you write off your car without GAP cover?

If your car is written off or stolen, it’s declared a total loss and you’ll receive a market value settlement from your car insurance company. This payment doesn’t cover your outstanding finance if you owe more than the car’s value, or any car leasing payments & deposits. Most of all, you lose a significant proportion of your initial investment to depreciation. Audi models lose up to 40% of their original value over the first three years of ownership. Audi GAP insurance covers the financial shortfall after a total loss to help you afford a replacement vehicle.

What are the different types of GAP insurance?

The right policy for you will depend on several things including, how you paid for your car, it’s age, mileage and how long you’ve owned it. Your coverage preference will also determine the most suitable GAP insurance policy.

The most common policy is Back to Invoice GAP insurance. This pays the difference between your car insurance payout and the original invoice price of the car, or any the outstanding loan balance if this is higher. Cars bought from a VAT-registered car dealer, less than 10 years old and owned for less than 180 days are eligible. Read all the eligibility requirements.

Vehicle Replacement GAP insurance policies are similar but cover the difference between the car insurance settlement and the vehicle replacement cost – even if this is more than you originally paid. Like Back to Invoice, this policy also covers your finance if the loan balance is higher than the replacement cost. Cars owned for less than 90 days, bought from a VAT-registered dealer and less than 7 years old are eligible.

Car leasing or contract hire is a popular way to pay for a luxury car. In this case, you’ll need Contract Hire GAP insurance to cover your Audi. This policy covers your insurance shortfall, any outstanding lease payments and up to £3,000 of your leasing deposit. You have 365 days to take out a GAP insurance policy after collecting your car.

If you don’t meet the requirements for the other policies, consider an Agreed Value GAP insurance policy. Here you’ll find no age and mileage limits but your policy will be based on the market value at the time of taking out a GAP insurance plan and no longer covers outstanding finance.

We offer optional add-ons such as Excess Protection, Scratch & Dent insurance and Tyre & Alloy Wheel insurance for greater peace of mind.

How long does Audi GAP insurance last?

GAP insurance policies are designed to cover the riskiest period of vehicle ownership – when your car is its newest and while you’re using Audi financial services or another finance agreement. New cars experience the steepest depreciation during the first 3 years of vehicle ownership – you could lose as much as 40% of the vehicle’s value with -20% occurring in the first year.

Our GAP insurance plans last up to five years, depending on the policy. Back to Invoice and Vehicle replacement policies offer, 1, 2, 3 and 4-year policies, meanwhile, Contract Hire GAP and Agreed Value offer 5-year policies for more peace of mind.

How much does Audi GAP insurance cost?

If you were to choose a Back to Invoice policy for your Audi, here are some policy examples, you could expect to see. These quotes are based on a nearly new Audi model bought in cash from a VAT-registered dealer.

On average, an Audi driver spends £231.74 on a GAP insurance policy, with the most popular policy duration of three years. Audi policyholders have a higher-than-average chance of needing to claim GAP insurance.

Is Audi GAP insurance worth it?

Considering the financial implications of a write-off GAP insurance is the best option for ensuring you can afford to buy a replacement.

On average, our claimants get £4,311.94 after writing off an Audi – money which can contribute towards your next car, finance deposit, or leasing contract. You benefit from a 19:1 payout-to-cost ratio and can save up to £4080.20 in financial shortfalls.

GAP insurance is a good idea if you want to be able to afford a replacement vehicle if the worst happens. With Audi being one of the more popular models for theft, you can never be too careful about protecting your investment.