From the responses we received, only 28% of drivers say they are familiar with GAP insurance, leaving 72% to claim that they are either not familiar, or have never heard of this type of insurance. This would most likely explain why only one in 10 (11%) of drivers said they have it.

car accident pic

An insurance company will only pay the value of a car at the time it is written off or stolen, NOT how much was paid for the car initially. And due to the rapid depreciation of a cars’ value, this could mean potentially losing thousands of pounds within months of buying it. From the results of our survey, one in five drivers have had a car written off and a third are unaware they could lose such a significant amount if this happens. Therefore, it pays for drivers to know that GAP insurance exists to protect them from this ‘gap’ in their finances.

Drivers gave four main reasons why they didn’t have GAP insurance: they weren’t aware 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%).

81% of drivers buy GAP insurance direct from the car dealerships or car manufacturers themselves. Often, they can buy a better value policy from an independent specialist insurer.

David Glenwright from Birmingham bought a second-hand Vauxhall Corsa and was quoted £299 for a GAP policy from the dealership. This is significantly more than the £84 he paid for the same policy by coming directly to us. “To be able to save hundreds of pounds on the same insurance is an absolute no brainer and I’m so pleased that I knew that I could shop around for GAP insurance rather than being tied to the dealership’s expensive policy.”

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, a director here at, says: “Cars depreciate ridiculously quickly, and if a car is written off, drivers risk losing thousands of pounds. 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. 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 us.”