25/08/2026
🚗 Bought your car on finance? Or made the switch to electric? This is worth knowing. If your car is written off, your motor insurer pays out what the car is worth at that moment, not what you paid for it, and not what you still owe on your loan.
For electric vehicles in particular, this can be a significant problem. Some EV models can lose up to 50% of their value within just 12 months meaning the gap between the insurance payout and the outstanding finance could run to thousands of pounds. GAP insurance covers exactly that shortfall. It's sometimes overlooked - but for anyone with a car on finance, it could make a real difference when it matters most.
At Penny & Wells, we're happy to talk you through your options. Get in touch today.
🌐 pennyandwells.co.uk