If your vehicle is written off or stolen before you finish paying the finance on it, your car insurance payout may not be enough to repay what you still owe and replace your vehicle with one of equivalent value. Guaranteed Asset Protection (GAP) is designed to cover this financial gap.


On average, new cars lose approximately 60% of their value after just three years. It’s this depreciation that makes it unlikely that a payout from your insurer will be as much as you paid for the car.

And, if you have a finance deal on your car, you risk having to repay more than the amount the car has been valued at by your insurer if:

- The deposit for your finance deal was small

- You’re paying the balance off slowly

- Your finance arrangement will leave you with a lump sum to pay at the end – a ‘balloon payment’

Without GAP Insurance, you might not be able to afford to replace your car. What’s more, you could still owe money for a car that you no longer have.

Kehoe Kars Ltd is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486) and which is permitted to advise on and arrange general insurance contracts.