GAP Insurance – Essential Coverage for Todays Drivers

In today’s rapidly changing vehicle market, the importance of GAP (Guaranteed Asset Protection) has never been clearer. 

Vehicle prices have soared, rising over nearly 35% since 2020 and new cars losing between 10-20% of their value the moment customers leave the lot. 

An untimely incident could leave many customers with no vehicle and a financial gap that the principal motor insurer won’t protect against, unless they have GAP Insurance. 

Total losses are becoming increasingly common, and with rising finance interest rates, longer financing terms, and vehicle repair costs climbing around 20% year-on-year, the financial impact of such events is growing. GAP insurance should no longer be viewed as an optional extra, it’s a crucial protection that looks after your investments and provides real peace of mind. 

Our GAP insurance offers comprehensive Return to Invoice (RTI) protection, covering the GAP between the insurance payout and the purchase price of the vehicle. This makes sure that in the event of a total loss; customers are not only covered for any remaining finance but also reimbursed to the full value the customer originally paid. With RTI, customers are in a much stronger position to replace their car without the risk of financial setbacks. 

Despite the crucial protection it provides, GAP insurance remains surprisingly undervalued. In 2023, there were 559,870 vehicle write offs in the UK, but only an estimated 4,400 GAP insurance claims were made. This is less than 1% of total write offs. The total payout of these claims was estimated to be £30.8 million, indicating that even with the small number of policyholders, the financial impact of a total loss can be significant.  

A recent study confirmed that from 2018 to 2023, new car prices on average skyrocketed 43%, from around £27,000.00 to £39,000.00.  

In turn, the average GAP payout has risen from around £1,587.00 in 2021 to over £5,500.00 in 2024. As of September 2025, the average is £7,630.00, which is up 37% from 2024 and a whopping 373% from 2021.  

With average GAP payouts now exceeding £7,500.00, more than triple the amount from just a few years ago, the financial protection it provides has never been more valuable. 

As the car market continues to evolve and unfortunate circumstances can arise at any moment, GAP insurance makes sure consumers are covered if a total loss is to occur. The product helps drivers protect their vehicles, their finances and offers an unparalleled peace of mind that no other product can. With the right coverage at AutoProtect, customers will never face a total loss alone.