Some UK drivers are left unable to afford a replacement car after a write-off incident despite having comprehensive insurance policies in place, data has suggested.
According to research from GAP insurance provider, ALA, 62% of drivers were unable to afford replacing written-off vehicles like-for-like from comprehensive insurance payouts. As such, a popular add-on in the world of car buying is GAP insurance, which tends to be used when it comes to new car purchases.
GAP, or ‘Guaranteed Asset Protection', is a type of insurance that covers the difference between a vehicle's value and the amount still left to pay on a lease or finance agreement in the event of its writing off.
Given that new cars lose a lot of their value within the first few months of ownership, GAP insurance can be seen as a helpful method of covering against a shortfall in the event of write-off. Independent GAP insurance provider, ALA is now offering a 12% discount to those who sign up using the code EXPRESS12 throughout October.
According to data cited by accident management company Auto Claims Assist, average repair costs climbed 24.7% from £4,162 (2019) to £5,191 (2025 YTD). A write-off occurs when the cost of repairs exceeds the vehicle's market value, thus making it more financially prudent for an insurer to pay out the vehicle's value than the costs of repairs. According to Auto Claims Assist, as repair costs have risen, so the proportion of vehicles written off has increased to 66.5% (2025 YTD), up from 58% in 2019, meaning UK drivers face additional financial pressure when accidents happen.
Talking about the ALA's research, Jason Allen from ALA Insurance said: "Comprehensive insurance often isn’t enough to cover the cost of replacing a vehicle, and many drivers are unaware of the options available to protect themselves from these shortfalls."
Despite having comprehensive insurance, the data and research found that 68% of drivers received payouts below £5,000, 38% received less than £2,500, 16% received more than £10,000, and 5% received over £20,000 for written-off vehicles.
GAP Insurance, is designed to cover "the difference between an insurance payout and the cost of a replacement vehicle", ALA says. While 35% of drivers have never heard of GAP Insurance, even those who are aware of it, 85% have not bought it, their data showed.
Mr Allen added: "Car dealerships remain the primary source of GAP insurance information, cited by 54% of those aware of the product. This suggests that many drivers are not aware of GAP insurance.”
ALA Insurance operates as an online independent provider of specialised insurance products. The company is regulated and authorised by the FCA. All of ALA's GAP policies also hold a 5-star Defaqto rating.
ALA customers shared their experiences on TrustPilot, where it has a 4.9 out of five star rating, with one person saying: "Used ALA to provide gap insurance on my last four cars. They are always easy to contact and everyone in their team is pleasant and knowledgeable. Would definitely recommend them."
Another added: "I have purchased GAP insurance through ALA a few times now. I have just changed my GAP insurance over to a new car and the process was really easy and the prices were excellent. Contacting ALA customer service was simple and I always find the agents very helpful and polite. I would definitely recommend ALA to other people."
