What is GAP Insurance?

GAP Insurance stands for Guaranteed Asset Protection and is a type of car insurance coverage designed to protect you from financial loss if your vehicle is totalled or stolen and you owe more on your loan or lease than the car’s current market value.

This type of insurance "fills the gap" by covering the difference, helping you avoid out-of-pocket expenses for a car you no longer have. It's commonly used for new or financed vehicles, especially when depreciation of your vehicle outpaces your loan repayments.

At Pulman Group we’re offering you the opportunity to protect your investment with GAP insurance. You can feel confident buying GAP insurance with us in the knowledge that you and your new car are protected from financial loss in the event something unfortunate happens.

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Here's How It Works

• Let’s say you buy a car for £20,000.
• A year later, it's involved in an accident and deemed a total loss.
• Your motor insurer values the car at £14,000 due to depreciation.
• But you still owe £18,000 on your finance agreement.
• That £4,000 shortfall? GAP Insurance covers it.

Without GAP cover, you’d be responsible for paying that £4,000 out of pocket.

Why Is GAP Insurance Important?

Depreciation Happens Fast

Cars can lose 15–35% of their value in the first year alone—and up to 60% after three years. If you finance or lease your car, you may find yourself “upside down” on your loan if an accident happens early on.

Standard Insurance May Not Be Enough

Your comprehensive car insurance will only pay out the market value of your car at the time of loss. That’s where GAP Insurance steps in—protecting your finances from unexpected hits.

t’s Especially Valuable for New Cars or Low Deposits

GAP Insurance is ideal for:

• New car buyers who want full peace of mind.
• Those putting down a small deposit and financing a large portion.
• Leased vehicles, where you’re expected to cover the full outstanding value in the event of a total loss.

How can I get GAP Insurance?

If you've purchased a new car with Pulman within the last 180 days, you can apply for GAP Insurance with us.

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