Yes, GAP insurance covers theft—but only in combination with comprehensive car insurance. If your car is stolen and declared a total loss, your standard insurer will pay its current market value. GAP (Guaranteed Asset Protection) insurance covers the difference between that payout and what you originally paid or still owe on finance, saving you from a financial shortfall.

How GAP Insurance Works for Stolen Cars
If your car is stolen and not recovered, your comprehensive insurance will typically only pay out the car’s market value at the time of theft—which may be much lower than what you originally paid. This can leave you with a financial gap, especially if you have outstanding finance.

Example Without GAP Insurance:

• You bought a new car for £30,000
• After two years, it’s worth £18,000 due to depreciation
• Your car is stolen and your insurer pays only £18,000
• You still owe £24,000 on a finance agreement
• You’re left with a £6,000 shortfall to pay out of pocket

 Example With GAP Insurance:

• Your insurer pays £18,000
• GAP insurance covers the £6,000 difference
• You owe £0 and avoid unexpected financial loss

Important Things to Know

 GAP insurance only works if your car is declared a total loss – It won’t cover minor damage or partial losses.
 You must have comprehensive car insurance – GAP insurance does not replace regular insurance.
 There may be theft exclusions – Some policies require proof that the car was properly secured (e.g., locked, with keys not left inside).
 GAP insurance must be purchased within a certain period – Usually within a few weeks or months of buying the car.

Is GAP Insurance Worth It for Theft Protection?
If you’re financing or leasing a car, GAP insurance is highly recommended to protect against theft-related financial loss. Without it, you could still owe thousands on a car you no longer own.