GAP Insurance – Cleddau Insurance Brokers in Pembrokeshire and Carmarthenshire
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GAP Insurance

Covering the full value of your car

Unfortunately, when it comes to buying a new car, as soon as it leaves the showroom it starts to depreciate in value. For example, you may purchase a brand-new car for £10,000, after three years it could decrease its value as low £4,000! Meaning any damage or theft to your car could result in you only getting £4000 back! If this is a concern for you GAP insurance is certainly a strong option.

What is GAP Insurance

GAP insurance is an additional form of insurance to go with your standard car insurance policy. The GAP insurance will cover the difference in value from when you bought your car to the circumstance when you might need a replacement due to an accident, fire, etc.

Cover is usually from one to three years, and can be applicable to new or used cars, however, the majority of GAP insurance gets taken up for cars up to three years old due to the depreciation in value, which is the quickest compared to any other period.


There are three main type of GAP insurance:

  • Vehicle Replacement – Covers the difference between the pay out from your standard insurance policy to the cost of what you purchased the car for.
  • Return to invoice – This covers both new and used cars, where it will cover the cost difference from your standard car policy and the amount you paid for it in the first instance.
  • Contract Hire / Finance – This type of cover will pay the difference between your standard car insurance and what you have left to pay on your finance deal.

Contract hire and PCP car deals are on the increase generally in the UK, Cleddau Insurance can assist in handling any GAP insurance requirement you may have.

Get a quote:

Contact us today for expert advice and a free, no obligation quote 01994 231548, or Contact us