GAP insurance claims pay-outs at a record high

The latest data analysis from leading vehicle ownership solution, MotorEasy, has revealed a continued rise in the average value of Guaranteed Asset Protection (GAP) claims. To the end of September 2025, claims payouts were, on average, 37% higher than in 2024 and almost four times the 2021 average (373% higher).

 Key findings

• The average payout in 2025 is £7,630, up by 37% over last year, which in turn was up 96% on 2024 and 373% on 2021

• 66% of claims related to accidents
• 27% of claims came because of vehicle theft
• The highest value claim so far this year was for £35,740, compared to £28,008 in 2024 and just £4,950 in 2021
• Of the ten highest value claims, eight were for premium brands such as Land Rover, Mercedes-Benz and Tesla
• Three of the top ten claims were for premium Range Rover models
• Nine of the top 10 claims were above £20,000 and two above £30,000

“There has been an unparalleled increase in the average GAP claims value in the past four years,” commented Duncan McClure Fisher, CEO of MotorEasy’s parent company, Intelligent Motoring. “During the pandemic, used cars were in high demand as a result of supply chain chaos impacting on new car production. This in turn, saw used car values rise rapidly.

 “However, fast forward to 2025 and new car supply has bounced back, resulting in used car values rapidly moving towards pre-pandemic levels. This has left significant numbers of people with cars worth considerably less than they paid for them. Although this may not appear to be an issue for many, it quickly becomes one if they have an accident or their car is stolen and they need to make an insurance claim.”

MotorEasy goes on to explain that whilst the global parts delay has improved greatly, repairs can still take months. Furthermore, the average new car is now packed with emissions tech, ADAS safety systems, fancy dashboards, and expensive battery components, and with complexity comes risk and high repair bills. These factors have resulted in some motor insurers choosing to declare a vehicle an insurance write-off, even though it’s suffered relatively minor damage from an accident. This is because the combination of the cost of replacing parts, workshop labour rates and courtesy car bills often totals much more than the vehicle is worth in today’s market.

Adding to car owner woes is the constant threat of vehicle theft. According to the DVLA, 53,955 cars were stolen in 2024, more than 1 every 10 minutes. Almost one in three MotorEasy GAP insurance payouts in 2024 were because of theft. Professional thieves are targeting luxury SUVs and high-value models, particularly Range Rovers, often for their parts or for shipping abroad. Because these cars depreciate quickly, standard insurance payouts often fall significantly short of what customers originally paid when they bought them.

Duncan McClure Fisher concluded: “We’re in a perfect storm, with high car prices, rapid depreciation, rising theft, unpredictable repairs, and economic pressure on drivers. It’s no surprise that GAP insurance claims are climbing. GAP insurance protects owners from unexpected losses by covering the difference between what their car is worth and what they paid - or still owe - whether their car is stolen, written off in an accident, or scrapped due to missing parts.”

Average claim payouts for GAP (Guaranteed Asset Protection) insurance have surged, with the typical 2025 payout at around £7,630, up 37 % on 2024 and over four times the 2021 average.