Gap insurance: essential protection for EV owners
A recent claim provided by BIBA-approved gap insurance brokers, Jackson Lee Underwriting has underlined the importance of gap insurance, particularly for electric vehicles which can depreciate rapidly in their early years.
In this real-life example, an Audi Q8 E-Tron purchased for £87,984.50 in December 2023 was written off in a road traffic accident in July 2025. The insurer’s settlement was £52,176.33, leaving a shortfall of £19,845.81 against the finance settlement figure of £72,022.14.
Fortunately, the customer had a BIBA-approved gap insurance policy in place, which paid out the full £30,000 benefit. This not only cleared the finance balance but also contributed towards a replacement vehicle.
Why gap insurance matters
- Electric vehicles can lose value quickly, especially in the first few years
- Standard motor insurance only pays the current market value
- Gap insurance bridges the shortfall between the insurer’s pay out and the outstanding finance or original purchase price
Whether you’re a consumer or a business, BIBA’s endorsed gap insurance scheme offers peace of mind and financial protection when it’s needed most.
- ✅ Real cover
- ✅ Real claims
- ✅ Real peace of mind
- learn more🔗 https://jacksonleeunderwriting.co.uk/biba-schemes/biba-gap/
