Gap insurance gives you extra peace of mind when you buy a car, and it could save you money in the long run. It covers the difference in price between what you paid for the car when you bought it, and the amount an insurance company would give you if your car was written off or stolen.
If, for instance, you purchased a car for £15,000, and when it was written off the insurance company would only pay you £6,000, your gap insurance policy would pay out the remaining £9,000. That's a substantial amount of money to help you buy your next car.
If you have any remaining finance on your car when it's written off or stolen you can be left making payments for a car you no longer own. Gap insurance takes care of those payments, enabling you to put your money towards a new vehicle.
Cars depreciate with every passing month, and insurers will take that depreciation into account when they pay-out. Gap insurance gives you the confidence that whatever you paid for your car when it was new, is exactly what you will get back should it be written off or stolen. You can be confident that should the worst happen, you'll have the funds to purchase a replacement car of a similar specification.