Little-known car insurance could save you £5,000 if your car is written off in accident – everything you need to know
A HIDDEN car insurance trick could save you £5,000 if your vehicle is written off.
Motorists claiming on this insurance stand to gain big - as average payouts have tripled in the past four years.
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GAP insurance payouts have nearly tripled in four years
Credit: Alamy
The average payout for Guaranteed Asset Protection - or GAP insurance - has soared from around £1,600 in 2021 to nearly £5,000 this year.
This little-known insurance hack is rarely used - with a Financial Conduct Authority probe revealing that the average driver with GAP insurance makes a claim just once every 300 years.
This product is mainly used to cover a potential shortfall between a car's value and the amount owed on finance if the vehicle is written off or stolen.
Drivers who need to make a claim are likely to receive larger payouts, as those who've financed their cars currently face several financial risks.
Read more on motors
GAP insurance is used not only by those with financed cars but also by owners who bought cars outright—they can claim if the insurer's payout is less than what they paid for the car.
Several factors have contributed to the soaring cash value of GAP claims.
These include the fast depreciation of certain vehicles - especially EVs - and a rise in insurance write-offs caused by soaring repair costs and parts shortages.
Rising motor thefts, targeting
models
like Range Rovers, have also driven up the cash value of GAP claims.
Most read in Motors
Experts say GAP insurance has shifted from a 'nice-to-have' policy to a 'vital financial safeguard' for today's car buyers.
The increase in the value of payouts "underscores the growing financial risk faced by car owners" in 2025, according to MotorEasy, a leading car ownership platform.
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However, this type of insurance has been controversial in the past, as it's often sold by dealers alongside cars - sometimes with limited explanation or inflated prices.
It's usually cheaper to buy GAP insurance through brokers.
The increase in the value of payouts "underscores the growing financial risk faced by car owners" in 2025, according to MotorEasy, the leading car ownership platform.
MotorEasy says the rise in average claim amounts is linked to the lasting effects of Covid-19.
However, since so few motorists were using GAP policies, the Financial Conduct Authority launched an investigation in 2023 over concerns about their value.
This led to many policies being withdrawn, with about 80 percent of products pulled from the market.
Experts now advise car buyers to compare policies carefully and consider brokers rather than accepting dealer offers.
Meanwhile, insurance experts have shared eight tips to help drivers
Tom Banks, a coverage expert for
This means you agree to pay more out of pocket if you make a claim, which lowers the amount the insurer has to cover.
Tom explained: "You want to make sure that you will be able to afford to pay it should you need to make a claim.
"But it's worth bearing in mind that choosing a higher voluntary excess will usually bring your car insurance premium down."
What is car insurance?
Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for...
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property - these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don't have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don't need to insure your car if it is classed as "off-road", or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
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The value of GAP has soared due to the depreciation of EVs and rising thefts
Credit: Alamy Live News
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The Journal
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The Irish Sun
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The gyratory - which is essentially a large, circular intersection - is located in the north of the Ealing borough in West London and serves as a major junction where the A40 (Western Avenue) and the A406 (North Circular Road) intersect, with the A40 passing underneath in a tunnel. It also connects to Ealing Road towards Wembley. Read more Motors News Outrageously complex, the confusing layout boasts a high accident rate and often causes a bottleneck for traffic At peak times, it's known to take on some 10,000 vehicles per hour - making it not only very busy but also quite intimidating. The infamous Magic Roundabout in Swindon followed closely behind in second place. A multi-mini roundabout system, the roundabout - which gets its name from the popular British children's television show, "The Magic Roundabout" - is made up of five mini roundabouts arranged in a circle around a central island. 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Chilling moment thieves steal car with wireless device in seconds as new doc reveals how Brit motors end up in Lithuania UK's top 10 most stressful junctions Hanger Lane Gyratory - London (Stress Score: 44/100) Magic Roundabout - Swindon (Stress Score: 42/100) Cromer Road & Boundary Road Junction - Norwich (Stress Score: 40/100) The Crooked Billet Interchange - Waltham Forest (Stress Score: 38/100) Ynysforgan Roundabout - Swansea (Stress Score: 38/100) Black Cat Roundabout - Bedfordshire (Stress Score: 38/100) Larne Road Roundabout - Ballymena (Stress Score: 36/100) Shalesmoor & Netherthorpe Road Roundabout - Sheffield (Stress Score: 36/100) Springwell Road & Queen Alexandra Road Junction - Sunderland (Stress Score: 35/100) Sheriffhall Roundabout - Edinburgh (Stress Score: 35/100) TRAVELLING PAINS Scrap Car Comparison not only ranked the most stressful junctions in the UK but also created a global leaderboard, ranking some of the world's most anxiety-inducing intersections. 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Matt Clamp, Customer Service Manager at Scrap Car Comparison, said: 'Driving through unfamiliar junctions can rattle even the most experienced motorists. 'Junctions often combine high traffic volumes, poor signage and confusing layouts, making preparation essential. 'Our advice? Start by planning ahead, tools such as Street View or route planners can help you visualise the road before you set off. 'Once you're behind the wheel, try to get into the correct lane early by watching for signs and markings. 'If you start to feel overwhelmed, take a breath and don't let other road users rush you - it's perfectly okay to go at your own pace. 'Always signal clearly and confidently to show your intentions, especially if you need to change lanes. 'And if you're really nervous, consider driving at quieter times of day when the roads are less busy. 'A little preparation can go a long way in turning a potentially stressful drive into a safe and confident journey.' World's top 10 most stressful junctions Meskel Square Roundabout - Addis Ababa, Ethiopia (Score: 56) Judge Harry Pregerson Interchange - Los Angeles, USA (Score: 51) Arc de Triomphe Roundabout - Paris, France (Score: 51) Newark Airport Interchange - Newark, USA (Score: 48) Place de la Bastille Roundabout - Paris, France (Score: 48) Shibuya Crossing Intersection - Tokyo, Japan (Score: 47) Piazza Venezia Roundabout - Rome, Italy (Score: 45) Plaza de Cibeles Roundabout - Madrid, Spain (Score: 45) I-5/I-8 Interchange - San Diego, USA (Score: 45) Hanger Lane Gyratory - London, England, UK (Score: 44)
