Over 500,000 vehicles are written off in the UK every year and many of the unfortunate owners will receive an insurance settlement for the current market value of the vehicle at that time – which will be much less than they paid originally. This means that the majority will face a loss of thousands of pounds, be left owing money for a vehicle they no longer have if purchased on finance, and have the worry of funding a replacement vehicle on top.

Thankfully this is where our Guaranteed Asset Protection comes in, settling the financial shortfall between original purchase price and the insurance payout, up to a maximum claim limit of £10,000.  Cover will last for up to five years if a finance agreement was used to buy the vehicle, otherwise up to three – and features no excess contributions if customers make a claim.

Used car values are currently buoyant, but this does not determine the state of the market down the line and is in no way impacting the demand for our GAP products. We know that sales of GAP across the industry rocketed during 2009 as used car values plummeted, and it is impossible to predict how the used market will fare during the future. But one thing is inevitable – depreciation will occur when the demand for older models settles down, and the customer will make a loss if their vehicle is written off (which can be as much as 40% during the second year of their ownership) which is why it is so important to ensure that they are offered this cover. GAP can usually only be taken out within three months from the point of sale, but any lost customers of can be canvassed by our aftersales team who achieve an average conversion rate of 60%+.

During 2012, we sold a record number of GAP products to dealers which we can partly attribute to the introduction of a pay-monthly cover, designed to help customers spread the cost and tick the Treating Customers Fairly box, a stipulation of the FSA. We’d also invested into further sales training initiatives (one-to-one or group training is provided free of charge to dealerships) by expanding our business development team who are experienced in helping dealerships to maximise their product sales and overcome objections. Remember that no-one wants to think of what could happen down the line, but offering GAP to your customers will ensure that their vehicles remain a secure investment, even if the worst happens. To find out more about our range of GAP products, request your free dealer pack here.

Total Loss explained…A vehicle could be confirmed as a Total Loss (or ‘Write-Off’) by a motor insurer following an accident, fire or theft. Total Loss will usually be declared if the cost of repairing the vehicle is higher than what the insurance company deems to be the market value.


  • A customer buys a vehicle from you at the advertised cost of £5,000
  • 18 months later, the vehicle is declared a Total Loss.
  • The insurance company make an offer for the vehicle – but it is for the current market value, which is £3,000.
  • Guaranteed Asset Protection will pay the £2,000 shortfall, taking the amount to the purchase price of £5,000.