Dealerships sell GAP (Guaranteed Asset Protection) insurance for up to four times* more than an equivalent policy from a specialist GAP insurance company, yet despite this 71% of car owners who buy a policy purchase it from dealerships or car manufacturers.

car insurance document and key

A GAP insurance policy bridges the gap between what a car cost new and the money received from the insurer if a claim is made because a car is stolen or written off.

A new Opinium** survey of 2000 car owners, commissioned by, a provider of GAP insurance for new and second-hand cars, found that only 10% of drivers have GAP insurance with a further 12% not having a policy but saying they had wanted one (rising to 25% of under 34s). Over half (51%) of those surveyed had not heard of GAP insurance.

Of those that have GAP insurance, three fifths (60%) bought it from a car dealership, 11% bought from the car manufacturer and 27% from an independent insurance company.

When InsuretheGap surveyed*** 90 customers, it found that the average quote for GAP insurance from a dealership was £467 and the average InsuretheGap quote was £131, a saving of 72%.

In the analysis, one car buyer bought a Dacia Duster for £16,995 and was quoted £499 from the dealership for a GAP policy. The same policy bought from is £109 – a 78% saving. Another bought a Volkswagen Polo, costing £13,400, and was quoted £432 (or £8.99 for 48 months) by the dealership, compared to an equivalent quote from for £98.88.

When a car is stolen or written off, the insurance company will only pay what the car is worth at the time, often leaving a ‘gap’ in a car buyer’s finances. A GAP policy covers the difference between the current market value of the car and either the price that was paid for it originally (Return to Invoice GAP); the amount owed on finance (Finance GAP); or a combination of the two (Combined Total Loss GAP) for those who paid a deposit as well as using a finance option.

When asked why they do not have GAP insurance, the Opinium survey found that over two fifths (46%) stated they were never offered it, and a fifth (22%) did not see the point in the added protection. Others commented on the cost of the product, noting that they believed it was either too expensive for the amount of cover it offered (19%) or that it was too expensive proportionately to the amount they were spending on the car (17%).

Ben Wooltorton, Chief Operating Office at, said: “Buying a car this summer could be a great opportunity to bag a bargain as dealerships are looking to offload cars before the new number plates come in in September, however all buyers should be aware of the benefits of a GAP insurance policy in providing a valuable financial cushion in the event that a new car is written off or stolen. Bridging that gap on your own could mean a lot of additional expense.” sells GAP policies from just £54.55****. Cover is available for vehicles worth up to £150,000, covering gaps up to £50,000.

* A car buyer bought a Dacia Duster for £16,995 and was quoted £499 from the dealership for a GAP policy. The same policy bought from is £109 – a 78% saving. Supporting paperwork is available.

**Research was conducted online by Opinium research amongst 2,001 adults who drive and have owned a car between 10 – 15 January 2018.

*** The analysis by InsuretheGap found that, of 90 customers surveyed, all were quoted more for a dealership GAP policy than if they had bought one direct from InsuretheGap. The survey included cars from most manufacturers including Audi, Volkswagen, Ford, Nissan, Citroen, Vauxhall, Peugeot, Skoda, Toyota, Kia, Volvo, Mazda and Fiat.

**** The starting price for policies is £54.55 (Return to invoice for a car worth £9,999).