Should I Buy GAP Insurance For A Second-Hand Car?

When most people think of GAP insurance, they imagine it’s just for brand-new cars. After all, new cars lose value the fastest. But what about a used car? Is GAP insurance still worth it if you’ve bought second-hand? Let’s break it down.

Quick Recap: What is GAP Insurance?

GAP (Guaranteed Asset Protection) insurance covers the difference between your car insurer’s payout (the market value of your car at the time it’s written off or stolen) and either:

What you originally paid for the car,
The outstanding finance you still owe, or
The cost of a replacement vehicle.

Without GAP cover, you could be left with a shortfall of thousands of pounds.

Do second-hand cars depreciate as fast?

It’s true that brand-new cars take the biggest hit in depreciation — often losing up to 30% in the first year. By the time a car is 2–3 years old, depreciation slows down. However, second-hand cars still lose value, especially if:

You bought an expensive or prestige model.
You financed the car with PCP, HP, or lease.
The car is in high supply on the used market (pushing prices down).
You plan to keep it for several years.

When GAP insurance makes sense for used cars

GAP insurance isn’t always necessary for every second-hand vehicle, but it can be very useful if:

Your used car cost £10,000 or more.
You bought on finance (you could owe more than the car is worth).
You want to protect against rapid depreciation (luxury cars, EVs, or models with new versions coming soon).
You’d struggle to replace the car out of pocket if it was written off.

The Bottom Line

GAP insurance can definitely be worth it for a second-hand car, especially if it’s a newer model, bought on finance, or something you couldn’t easily replace. It’s not essential for every used car, but for many drivers it’s a smart way to protect against financial loss. At Quote My GAP, we offer affordable GAP cover for both new and used cars — so you can drive with peace of mind, no matter what you’ve bought.

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