Guaranteed Asset Protection claims spike 37%
New data has revealed that average Guaranteed Asset Protection claims has risen by 37% in the last 12 months.
According to MotorEasy, payouts in the first nine months of the year average £7,630, which is more than a third higher than last year and 373% up on 2021.
The data also revealed that 66% of claims related to accidents while 27% were because of vehicle theft.
The highest single claim so far this year was for £35,740 compared to £28,008 in 2024 and just £4,950 in 2021, with nine of the top 10 claims above £20,000 and two above £30,000.
Unparalleled increase
Duncan McClure Fisher, CEO of MotorEasy’s parent company, Intelligent Motoring, said: “There has been an unparalleled increase in the average GAP claims value in the past four years. 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.”
Repair times
Long repair times and increased technology in modern vehicles has ramped up repair costs meaning even minor accidents can lead to write offs, while DVLA figures reported that 53,955 cars were stolen in 2024, more than 1 every 10 minutes.
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 the motorist by covering the difference between what a car is worth and what they paid for it, or still owe.
