Admiral Gap Insurance: What You Need To Know

As of 31 March 2021, Admiral no longer sells Gap Insurance. However, if you have an existing Admiral Gap Policy, it will remain valid until your policy expires, you make a claim, or you cancel the policy.

Gap Insurance covers the difference between your insurer settlement and the value of your car. It is useful for car owners whose cars depreciate in value very quickly, who have bought their car on finance with a high rate of interest, or who plan on paying back their car over a long period of time.

Admiral no longer sells Gap Insurance as of 31 March 2021

As of 31 March 2021, Admiral no longer sells Gap Insurance. If you have an existing Admiral Gap Insurance policy, your policy remains valid until it expires, you make a claim, or you cancel the policy. You can contact Customer Services on 0344 573 8084 if you have any questions about your policy.

Gap Insurance covers the difference between the amount you paid for your car and the amount your insurance company would pay out if it were written off or stolen. This type of insurance is particularly useful if you want a brand new replacement car or if you owe money to a car finance company.

There are five levels of Gap Insurance: Finance, Return to Invoice, Vehicle Replacement, Return to Value, and Lease. Gap Insurance can be purchased from your car dealer or from other companies online. It is recommended that you buy Gap Insurance separately after purchasing your vehicle, as it tends to be more expensive from car dealers.

While Gap Insurance is not essential, as your car insurance should cover the cost of a replacement car of a similar age and condition, it can provide peace of mind and financial protection in the event of a total loss.

Existing Admiral Gap Insurance policies remain valid until their expiry, a claim, or cancellation

As of 31st March 2021, Admiral no longer sells Gap Insurance. However, if you have an existing Admiral Gap Insurance policy, it will remain valid until it expires, you make a claim, or you cancel the policy.

Admiral Gap Insurance covers the difference between the amount your insurer pays out and the amount you originally paid for your car, or the amount you owe to a car finance company. This is especially useful if you want a brand-new replacement car or if you owe money to a car finance company.

Admiral Gap Insurance policies can be anything from 2 to 4 years long. To find out the length of your policy, check your schedule of cover on the online portal or by calling customer services.

If you need to make a claim, you can do so by visiting the portal or by calling, emailing, or posting.

GAP Insurance covers the difference between the insurer's settlement and the car's value

Guaranteed Asset Protection (GAP) Insurance covers the difference between the settlement from your insurer and the value of your car. This type of insurance is useful for every car owner, especially if your car depreciates in value very quickly, you have bought your car on finance with a high rate of interest, or you plan on paying back your car loan over a long period.

As soon as you purchase a new car and drive it away, it begins to decrease in value. Lease Car estimates that a new car will lose 50-60% of its market value after three years of ownership, assuming an average of 10,000 miles per year. This depreciation can leave car owners at a significant disadvantage if their vehicle is stolen or written off.

In the event of a total loss, your insurer will ordinarily only cover the current value of your car, which may be less than the outstanding loan or lease amount. This is where GAP Insurance comes in. It covers the difference between the insurance payout and the cost of a new vehicle, allowing you to purchase a like-for-like replacement.

There are different types of GAP insurance policies available, including return to invoice, vehicle replacement, return to value, and lease. These policies can cover the difference between the insurer's settlement and the invoice price, the cost of a new version of the car, the value of the car when you bought it, or the remaining contract costs and early settlement fees for a leased car.

GAP Insurance can be purchased from your car dealer, but it is often more expensive. It is recommended to buy it separately once you have purchased your vehicle. The Financial Conduct Authority regulates the use of GAP Insurance in the automotive industry.

While GAP Insurance is not required by any insurer or state, it can provide valuable peace of mind and financial protection in the event of a total loss or theft of your vehicle.

GAP Insurance is recommended for cars that depreciate quickly

Guaranteed Asset Protection (GAP) Insurance is highly recommended for cars that depreciate quickly. As soon as a new car is driven off the lot, its value starts to decrease. According to Lease Car, a new car typically loses 50-60% of its market value after three years of ownership, assuming an average of 10,000 miles per year. This is where GAP insurance comes in—it saves car owners from losing money if their car gets stolen or written off.

In the event of a total loss, a standard insurance policy will only cover the current value of the car, which may be significantly less than what the owner paid for it. GAP insurance covers the difference between the insurer's settlement and the value of the car, ensuring that the owner does not suffer a financial loss. This type of insurance is especially useful for cars that depreciate quickly, as it can provide peace of mind and financial protection.

Admiral, a major insurance company, used to offer GAP insurance but stopped selling it as of March 31, 2021. However, existing policyholders are still covered until their policy expires, they make a claim, or they cancel the policy.

GAP insurance is typically recommended for newer cars, as they tend to depreciate more quickly. If a car is less than five years old and has under 50,000 miles on the clock, it is generally eligible for GAP insurance. Additionally, GAP insurance is often aimed at cars with high depreciation rates, such as luxury sedans or SUVs.

When deciding whether to purchase GAP insurance, it is important to consider factors such as the down payment made on the car, the length of the finance period, and the expected depreciation rate of the vehicle. By comparing the estimated value of the car over time with the outstanding loan amount, car owners can assess their potential risk and determine if GAP insurance is a worthwhile investment.

GAP Insurance can be purchased from car dealers or separately

Guaranteed Asset Protection (GAP) Insurance covers the difference between your insurer's settlement and the value of your car. It is useful for every car owner, especially if you own a car that depreciates in value very quickly, have bought your car on finance with a high rate of interest, or plan on paying back your car loan over a long period.

You can purchase GAP insurance from your car dealer, but it is often more expensive than buying it separately from another provider. Dealers are not legally allowed to sell GAP insurance on the same day they sell you the car, and they must also ensure you know you can get the cover elsewhere. When purchased at the dealer, GAP insurance can cost several hundred dollars or more, spread equally throughout your loan payments and therefore subject to interest.

You can typically get GAP insurance through your auto insurer, and it may be cheaper to buy it this way. You can add GAP coverage to an existing car insurance policy or a new policy, as long as your loan or lease hasn't been paid off. If you add GAP coverage to your existing auto policy, your premium will increase (usually minimally) when you add the coverage, and you can choose to remove it when it no longer makes sense, potentially leading to a cheaper cost than if you purchased it from the dealer.

Some lenders may include a gap waiver in your loan or lease, which eliminates the need for GAP insurance.

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