In short, GAP covers the difference between what you pay for your vehicle and what your insurer pays out for the vehicle at the point of a total loss (write off).
For example I buy a vehicle in 2015 brand new for £12,000. I have a claim in 2016 and my vehicle is written off, my insurer pays out (market value) of £8,500. Luckily I have Gap cover and this will cover the shortfall of £3500!
Due to the large amount of cover you can get we are hearing that dealers are charging astronomical premiums for this product, making it sound cheaper by spreading it over 12/24 months!
Using this real life scenario you can decide who you should purchase from!