Electric Vehicle GAP Insurance

EV GAP Insurance from Bettersafe will allow you to cover the difference between the settlement amount from your comprehensive insurance and the amount you originally paid for the vehicle if you were to write off your vehicle.

Combined EV Gap insurance

Lease EV GAP insurance

What Is GAP Insurance?

GAP stands for Guaranteed Asset Protection. GAP insurance helps protect you when you purchase a car using finance. GAP insurance is designed to cover the difference between the amount your car insurance would pay-out and the amount you originally paid for the car if the car is written off.

Why do I need EV GAP insurance?

Once you purchase a car from the dealership its value will start to decrease once you drive it away. In the current market Electric Vehicles (EVs) are considerably more expensive than an Internal Combustion Engine (ICE) alternative. They are also a new type of vehicle and so insurance companies are still figuring out what the future value might be. This means that in the unfortunate event of a total loss claim the amount you get back from your insurer could be substantially less than you owe.

Electric vehicles can depreciate in value by up to 60% over three years. That means that if you purchase a new electric vehicle for £30,000 today, in three years’ time it could be worth only £12,000. If you had an accident and it was classed as a write-off, your car insurance could give you a settlement of a lot less than for what you purchased the car. This could then leave you severely out-of-pocket. Bettersafe’s EV GAP insurance would pay the difference between the settlement amount and the amount you originally paid for the vehicle.

To be covered under our EV GAP insurance policy, your vehicle must be covered under a comprehensive motor insurance policy. This insurance policy must cover loss or damage to your vehicle caused by accidental damage, fire, or theft. We will also pay up to £250 for your motor insurance excess.

What Does Electric Vehicle GAP Insurance Cover?

If your vehicle is written off or has been stolen and is not recoverable, Bettersafe’s EV GAP insurance pays the difference between the motor insurance settlement and whatever was greater, the purchase price of your vehicle or the settlement amount that you owe to your finance company.

If your vehicle was acquired using a contract hire/lease agreement, Bettersafe’s GAP insurance would pay the difference between the motor insurance settlement and the termination charge applied by the finance company. We will also cover your initial deposit rental paid on your vehicle up to a maximum value of £2,000.

How does EV GAP insurance work?

Let's say you have purchased a Tesla for £40,000, but when it was written off or stolen it was deemed to be worth £18,000 by your insurer. This would mean you would be taking a shortfall of £22,000. This would leave you significantly out-of-pocket, which could financially damage you and your family. You would also no longer have a car!

A Bettersafe’s EV GAP insurance policy would then cover that shortfall of £22,000, meaning that you won’t be left out-of-pocket. You could then also go out and find a replacement vehicle.

If you paid for your electric vehicle using a finance agreement, your EV GAP Insurance policy would cover the outstanding amount. That means you’re not left repaying the finance company for a car that you can no longer use.

What is the best type of EV GAP insurance for me?

This largely depends on if you own the car or if it is on a lease contract. Here at Bettersafe we offer two types of EV GAP insurance.

Combined EV GAP:

This pays the difference between the motor insurer’s settlement and then whichever is greater, the original invoice price of your car, or the outstanding finance.

Lease EV GAP:

This pays the difference between the motor insurer’s settlement and the amount that you have outstanding on a contract hire/ lease agreement.

Are There Any Exclusions?

As with any insurance, there are always some instances where a Bettersafe policy would not cover you:

  • If your car were over 8 years old and/or cost over £80,000 at the point of policy purchase.

  • If your car was purchased more than 90 days before you bought your EV GAP insurance policy.

  • If your electric vehicle has not been determined a write-off by your insurance provider; GAP insurance only covers the financial shortfall if it is classed as being written off or beyond economical repair.

  • Negligence. Your EV GAP insurance policy would not be valid if the vehicle were written off as a result of you leaving the car unlocked, with the windows/ roof open, or if the keys are left in or on the vehicle.

  • Under the influence. As with most insurance policies, we would not cover any financial shortfall if the vehicle were written off due to intoxication from alcohol or drugs not prescribed by a licensed medical practitioner.

  • There are further GAP insurance exclusions that you can read in the policy wording document below.

How Do I Make A Claim?

  1. Check your policy wording. Ensure you are aware of any exclusions which may apply and that you understand them.

  2. Notify the claim. All claims must be notified to the administrator within 30 days of receiving the settlement on your primary policy.

Jackson Lee Underwriting

The Estate Office

Shadrack, Berry Pomeroy

Totnes, Devon


Telephone: +44 (0) 330 111 3093


Ensure that this is done within 90 days of your claim under your motor insurance policy.

From there, our Administrator will let you know all the relevant documents you will need to provide for them.