Cheap GAP insurance – save money on total loss coverage

Do you know how much you should be spending on Guaranteed Asset Protection (GAP) insurance? You could be spending triple by using the wrong GAP insurance provider. Still, making the right choice in the GAP insurance market is vital to avoid overspending.

The average three-year GAP insurance policy is around £150-£300 for the entire policy term. Your quote depends on your car’s original value, age, mileage, how you paid for it and how long you’ve owned it. Your car’s details may also determine the policy types you’re eligible for.

The costs of running a car increase yearly, including rising car insurance costs. Do you know how to save cash on your car’s expenses? Use our quick guide to discover affordable GAP insurance to protect against unexpected car-related costs.

Why is GAP insurance so cheap?

Some of our customers are surprised by the affordability of our total loss protection. However, the FCA determined that dealership GAP insurance was unfairly priced, and independent providers are offering fair value to customers.

One of the reasons GAP insurance is affordable compared to other motor insurance products is because it covers a financial shortfall, only in the case of a total loss (write-off or theft). A write-off occurs every 90 seconds, However, thankfully, you may never need to make a total loss claim with us. It’s always reassuring to know we have your back in case the worst happens.

The average GAP insurance payout is around £4,000 which is a considerable amount. Still, your market value settlement from the comprehensive insurer will cover the bulk of the losses. ALA will top up your settlement to ease the financial pressure after a write-off.

Where to find cheap GAP insurance in the UK

You’ll almost always get the best deal from an independent GAP insurance provider over your dealership’s standard GAP insurance upsell. There are several competitively-priced GAP insurance policies available online.

Some of the cheaper quotes come from smaller, less reputable insurers – to get the cheaper price tag, customers pay the price with slower claims processing, unreliable customer support or even lower payout rates.

The budget option for GAP insurance on Money Supermarket (2024) currently has zero online GAP insurance reviews nor are they endorsed by Defaqto experts. You could save some cash and take the risk with a less reputable firm, or have the peace of mind that you’re in safe hands if you need to make a total loss claim.

Here are our top tips for finding the best insurance provider:

• Always read GAP insurance reviews on Trustpilot or other mainstream reviewing platforms before opting for the cheapest motor insurance firm. Check the dates too; are the recent reviews positive?
• Check Defaqto for a rating – five stars mean insurance experts have rated the product and service as excellent and comprehensive
• Compare GAP insurance cover – some providers include excess protection as standard which helps you save even more if you need to claim
• Check policy exclusions – most GAP policies have similar limitations but it’s always worth checking whether you could encounter something to invalidate your claim, such as ongoing age or mileage limits.
• Check whether you can cancel or transfer your policy. Hopefully, you won’t need to cancel but if circumstances change, you’ll want to be able to get a refund for any unused premium, ALA Insurance never charges administration costs.

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How to save money on GAP insurance

Even if you find cheap GAP insurance there are some clever ways to lower your premium and save even more money. Check for sales and discounts. ALA offer a 5% discount for first-time customers all year round. We also offer seasonal discounts up to 20% off. Keep an eye out for biannual discounts with ALA.

Opt for a one-off GAP insurance payment. It’s usually marginally more expensive to choose monthly payments over a one-time payment.

Choose your policy length wisely. A shorter policy will be cheaper but most plans aren’t renewable, so when it ends, you’ll only be eligible for an Agreed Value GAP insurance (AVG). The policy limit for AVG is capped at your current vehicle’s market value, not the original purchase value, so you may miss out on the full benefits of GAP insurance by choosing a short policy term.

Choose the right policy type. There are four types of GAP insurance and if you’re eligible for several, you could reduce your costs by choosing the right one. For example, if you’re eligible for Back to Invoice and Vehicle Replacement, you could opt for the former to save around 35% on your policy.

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The best-value GAP insurance

Take the product service and brand into consideration when comparing car insurance prices. You can’t get a complete picture by comparing costs alone. As we’ve mentioned, check your car insurance provider ratings, recent reviews, cover and policy exclusions.

Pay the price for choosing an unreliable provider over a trusted brand.

ALA has one of the most affordable GAP coverage products on the market while being highly rated and trusted by experts and customers. We pride ourselves on settling claims quickly so you can get back on the road in no time.

The benefits of cheap GAP insurance

Frequently Asked Questions

Can I buy gap insurance privately?

Many drivers used to opt for dealer GAP insurance because it’s the easiest option when buying used or new cars but you can pay up to 3X the price for a GAP insurance policy. Simply make a quote online to find the best GAP insurance deal.

Can you get gap insurance for cars over 10 years old?

Most GAP insurance providers exclude cars over 10 years. However, ALA’s Agreed Value policies have no age limits so you could insure a ten-year-old car if needs be. Make a quick quote now to see how much your policy might cost.

Can you pay gap insurance monthly?

Although it’s cheaper to make an annual payment, paying monthly for GAP insurance can help you finance GAP insurance and manage cash flow. With ALA, you can split the cost of GAP insurance over ten months including a small amount of interest.