Cars sales in the UK are at a record high, yet many drivers are in the dark about how they protect their investment, according to a new Opinium survey of 2000 UK drivers commissioned by, a new independent provider of GAP (Guaranteed Asset Protection) insurance, launched by award-winning and FCA regulated, Halo Insurance Services Ltd.

female driver holding car keys

Only a quarter (28%) of drivers say that they are familiar with GAP Insurance, with more than two thirds (72%) stating that they are either not familiar, or have never heard of this type of insurance, which may explain why only one in ten (11%) drivers have it.

If a car is written off or stolen, the insurance company will only pay the value of the car at the time of the incident, not the amount paid for it. One in five drivers (18%) have had a car written off, according to the research, and a third of drivers (30%) are unaware that they could lose thousands of pounds if this happens, so it would pay drivers to know that GAP insurance exists to protect them from this ‘gap’ in their finances.

The main reasons drivers gave as to why they did not have GAP insurance were: they didn’t know it existed (35%); they were never offered it (29%); they didn’t know enough about it (19%); and they didn’t see the point (15%).

Of those who bought GAP insurance, four fifths (82%) bought it from a car dealership or car manufacturer, when they could buy a better value policy from an independent specialist insurer.’s policies start from just £54.55*.

In 2015 the Financial Conduct Authority (FCA) clamped down on dealerships selling GAP insurance and introduced a four-day breathing space period to allow consumers to shop around and not to feel pressurised by the face-to-face sales’ environment.

Ben Wooltorton, Director,, said: “Cars depreciate ridiculously quickly, and if a car is written off either due to damage or theft, drivers risk being thousands of pounds out of pocket. It seems that many people aren’t aware of this, and for many the first time they learn about it is when they are offered GAP Insurance by the car dealership.”

Wooltorton continues, “However the protection offered by car dealerships and manufacturers tends to be expensive. Cover is available at a fraction of the price from standalone insurance specialists like Our policies start from just £54.55.”

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