With so many new 63 plate cars leaving the forecourts of UK motor dealers this September the market for Gap Insurance is booming. A new car is a significant financial investment, even the £6,000 required to buy a Dacia Sondero may not be a cheque you would like to sign every day of the week.

It makes sense for consumers to consider a form a Gap Insurance to protect their investment. However, even once you have made the decision to take cover out, there are practical steps you can take to get the very best value for money also.

How to save on Gap Insurance on a new 63 plate car

Our number one tip we can provide on Gap Insurance for a new car requires you to check the terms of your motor insurers policy terms first. This is because with many (but not all so you must check) motor insurers terms they will provide you with a brand new replacement vehicle if the vehicle is deemed a ‘total loss’ in the first year, after an accident, fire or theft. Of course we would urge you to carefully check the terms that are offered by the motor insurer, to ensure that there are no prohibitive terms in place. If you are happy with what they say then you have the option to save a huge amount on your Gap Insurance cover.

63 plate cars

Best tip for Gap Insurance on a new 63 plate cars


If you are essentially covered in the first year anyway, paying for a Gap Insurance policy to run alongside this could be a total waste of money.

The answer could be to defer your Gap Insurance start date for a year (some, not all, online providers will allow you to do this) . This means that if you wanted 3 year protection, using the first year on you motor insurance replacement cover, you could take a 2 year Gap policy timed to start at the end of the first 12 months.

This should mean you are only paying for the two years that you actually need.

So how much more cost effective is this?

If you consider a normal 3 year Return to Invoice policy at a motor dealer may be charged at £399, with no option to defer your start date. If you already have replacement cover with your motor insurer anyway, you could be paying for a Gap policy for 3 years that effectively only covers you for two.

Why is this? Well if your motor insurer replaces the vehicle in that first year then you have no claim to make on your Gap Insurance have you?

This means that you are , in effect, paying £199.50 per year for your Return to Invoice cover through your motor dealer.

We found an equivalent RTI product online, that provided a 2 year policy that can be deferred for 12 months, at an astonishing £77. This means you are paying only £38.50 for the same effective cover per year, with an online provider who will allow you defer.

So by deferring with an online provider you are paying only 20% of the cost of the policy when bought from the motor dealer.

Our number one tip for buying Gap Insurance on a new car if you have replacement cover in the first year with the motor insurer, take a year less with you Gap and defer for 12 months with an online provider.

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