Some motorists ‘unable to replace cars’ after | Tech News

Some UK drivers are left unable to afford a substitute car after a write-off incident regardless of having complete insurance coverage insurance policies in place, knowledge has urged.

According to analysis from GAP insurance coverage supplier, ALA, 62% of drivers have been unable to afford changing written-off automobiles like-for-like from complete insurance coverage payouts. As such, a widespread add-on on this planet of car shopping for is GAP insurance coverage, 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 cowl the fee of changing a vehicle, and plenty of drivers are unaware of the choices accessible to shield themselves from these shortfalls.”

Despite having complete insurance coverage, the information and analysis discovered that 68% of drivers acquired payouts under £5,000, 38% acquired much less than £2,500, 16% acquired more than £10,000, and 5% acquired over £20,000 for written-off automobiles.

GAP Insurance, is designed to cowl “the difference between an insurance payout and the cost of a replacement vehicle”, ALA says. While 35% of drivers have by no means heard of GAP Insurance, even those that are conscious of it, 85% haven’t purchased it, their knowledge confirmed.

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 insurance policies additionally maintain a 5-star Defaqto score.

ALA clients shared their experiences on TrustPilot, the place it has a 4.9 out of 5 star score, with one individual saying: “Used ALA to present hole insurance coverage on my final 4 vehicles. They are at all times straightforward to contact and everybody of their staff is nice and educated. Would positively advocate them.”

Another added: “I’ve bought GAP insurance coverage via ALA a few instances now. I’ve simply modified my GAP insurance coverage over to a new car and the method was very easy and the costs have been glorious. Contacting ALA customer support was easy and I at all times discover the brokers very useful and well mannered. I’d positively advocate ALA to different people.”