A vehicle total loss occurs when your car is damaged beyond repair or is stolen. Accidents, breakdowns and thefts can all result in a total loss and it can happen to anyone. In fact 12% of British car owners experienced a total loss within the past 5 years (YouGov, 2022). The BMW 5 series is in the top 10 list for most written-off cars in 2023. The 3-Series is also in the top ten most-stolen vehicle. Motor insurance products such as GAP insurance and BMW insured warranty help protect you from a significant car-related cost.
After a total loss, your motor insurer only pays the market value of the vehicle at the time of the write-off which means you lose out to depreciation, car finance (if applicable) and other motoring shortfalls such as motor insurance excess, car leasing payments etc. On average, drivers face a shortfall of £5,596 for a car worth £28,000 (ALA. 2022) – only 17% could afford a like-for-like replacement after a total loss. Fortunately, Guaranteed Asset Protection insurance helps drivers afford a replacement vehicle after a write-off. Learn about how BMW drivers benefit from GAP insurance cover.
Only 5% of Brits know about GAP insurance cover (YouGov, 2022) so the majority of drivers who have written off a car face a financial shortfall when they don’t have to. All cars lose value over time, a new BMW will lose value the fastest. After a total loss, your motor insurance only pays out up to the market value at the time, so you don’t get back what you originally paid for it.
Moreover, if you paid for your car with BMW financial services, the price of your model has gone up since you bought it or you have significant insurance excess to cover, you could be even more out of pocket after a write-off. Paying off a car you no longer own can put significant strain on your finances and carrying over negative equity from a previous vehicle isn’t favourable.
GAP insurance tops up your motor insurance settlement to help you afford a replacement. There are four different types of GAP insurance cover which we will discuss in detail later in the article. In summary, Back to Invoice Plus (also called return to invoice) GAP insurance covers up to the amount you originally paid, Vehicle Replacement Plus covers up to the replacement cost (both of these cover vehicle finance), Contract Hire Plus covers car leasing shortfalls and Agreed Value covers just depreciation.
GAP insurance policies cover vehicles of all types and ages so you can be confident that you’re eligible for ALA GAP insurance cover, even with a used car or one bought from a private seller.
As mentioned, GAP insurance cover is available, regardless of where you bought it, how you paid for it and how long you’ve had it. If your car is in the Glass’s Guide and not on our exclusions list, chances are, it’s eligible for at least one of our cover options. Explore the eligibility requirements of our policies below:
What does Back to Invoice GAP insurance cover?
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What does Vehicle Replacement GAP insurance cover?
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What does Contract Hire GAP insurance cover?
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What does Agreed Value GAP insurance cover?
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However you’ve paid for your BMW, you’ll want to be able to afford a like-for-like replacement after an unforseen write-off. Vehicle Replacement is the only policy that secures the funds for a replacement even if the price has increased since you bought your car. Additionally, this type of cover extends to your outstanding finance balance if this is higher than the replacement cost. Vehicle replacement cover may be preferable for new cars.
Back to Invoice GAP insurance will cover your remaining vehicle finance if this is higher than the invoice price, so either policy is suitable for financed cars. Back to Invoice policies may be more suitable for used cars since there is no mileage cap. If you lease your car, you’re only eligible for Contract Hire GAP insurance.
Finally, if you bought your BMW from a private seller or you’re outside of the timeframe requirements of the other policies you could get an Agreed Value policy to cover depreciation since purchasing a policy.
The price you pay for GAP insurance depends on the policy you choose and your vehicle details. Here are some examples of typical GAP insurance quotes for a Back to Invoice policy. Read more BMW GAP insurance quotes.
| Vehicle Model | Price (New) | 1-year | 2-year | 3-year | 4-year |
| BMW 3 Series | £39,000 | £137.84 | £163.04 | £219.16 | £287.75 |
| BMW 5-series | £45,000 | £137.84 | £181.74 | £244.10 | £287.75 |
| BMW M Models | From £87,500 | £170.58 | £263.62 | £312.48 | £402.08 |
| BMW X5 | From £68,695 | £149.91 | £232.61 | £292.32 | £371.84 |
Get your unique GAP insurance quote here.
BMW cars are at risk of write-offs and theft and if either occurs, you could be left to cover the financial shortfall associated with a BMW total loss – including, the depreciation value, any outstanding finance, lease payments and deposits and motor insurance excess.
The average cost of BMW GAP insurance is £249.34 and the average payout is £5,227.47 (a 21:1 benefit is higher than our average benefit!). The average BMW claimant saves £5,028.13 by having total loss protection in place. Moreover, our second-most common claim involves a BMW. Hopefully, you’ll never need us; but just in case you do, you’d save a considerable amount.
| Average Policy Cost | Average BMW Payout | Average BMW savings | Cost to Benefit Ratio |
| £249.34 | £5,227.47 | £5,028.13 | 1:21 |
GAP insurance is especially worth it for BMWs becasue they are at a higher-than-average risk of a write off or theft and they also have the second-highest claim number for GAP insurance. To ensure you can afford a replacement after a total loss, GAP insurance is a good idea.
Over 1,600 customers would recommend ALA for GAP insurance. Find out why – get a quote
The average BMW policy costs £249.34 and the most common policy length purchased is 3-years. You can save money by choosing a lower cover limit or a shorter policy term but be aware that you can’t renew GAP insurance. Read about GAP insurance policy renewals.
If you bought a policy from ALA, you can cancel and receive a pro-rata refund of unused premium at any time. You will only receive a refund if you have neither made any successful GAP insurance claims nor started the claims process. For more information, read the cancellation policy. There may be fees or limits to cancellation if you used another insurance company.
ALA offers a specific type of GAP insurance for leased BMWs. Contract Hire GAP insurance covers tops up your car insurance payout (if necessary), covers any outstanding lease payments and up to £3,000 towards a deposit to your next leased vehicle.
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