GAP Insurance comes in a variety of guises, and, as usual with any insurance product, you have to know what exactly are you covering.

There are two main types. The first, which I will call Finance Insurance, will ensure that the policyholder is covered for any shortfall between what the insurance company pays out on a Total Loss basis, and the finance outstanding on the car.

The second, which I shall call Back to Invoice Insurance, covers the difference between the payout from insurance and the original invoice value of the car.

I will leave you to work out which is likely to pay out the most and which is, therefore, likely to be good value. But does it aso cover the excess under the main insurance policy?

Now it's getting complicated do you think? It's insurance. What do you expect?