GAP (Guaranteed Asset Protection) insurance is designed to cover the difference between your car’s market value and the amount left on your finance agreement. It’s optional, but can be a financial lifesaver if your car is written off early in the finance term when depreciation is steep.
If you don’t have GAP insurance, it’s worth checking your finance agreement to see if it includes any cover for shortfalls.
Not directly. But if you don’t repay any remaining balance owed after a write-off, it could negatively impact your credit.
Sometimes, depending on the write-off category and if your finance company agrees. You’d usually need to buy the car back from the insurer.
Your insurer may recover costs from the other party’s insurer, and your no-claims bonus may be protected (if you’ve added that to your policy).
