New data from MotorEasy shows that the average value of Guaranteed Asset Protection (GAP) insurance claims has risen sharply in 2025, reflecting the ongoing challenges of vehicle depreciation, theft and escalating repair costs in the UK motor market.
According to MotorEasy's analysis, average GAP claim payouts to the end of September reached £7,630, a 37% increase from 2024 and 373% higher than in 2021. Two-thirds of claims this year were linked to accidents, while more than a quarter stemmed from vehicle theft.
The highest claim paid in 2025 so far reached £35,740, up from £28,008 last year, with premium models such as Land Rover, Mercedes-Benz, and Tesla dominating the top claims list. Three of the 10 largest claims involved Range Rover models, highlighting their high value and theft appeal.
The rising cost of GAP insurance claims mirrors wider shifts in the post-pandemic car market. During the COVID-19 pandemic, supply chain disruptions limited new car production, pushing used vehicle prices to record highs.
As supply normalised through 2024 and 2025, those inflated values have since fallen, leaving many motorists with cars worth far less than their purchase price.
This depreciation becomes particularly costly when a vehicle is written off or stolen. Duncan McClure Fisher, CEO of Intelligent Motoring, MotorEasy's parent company, explained that as new car availability improved, used car values "rapidly moving towards pre-pandemic levels," creating large shortfalls between insured value and purchase price.
At the same time, vehicle complexity has grown. Modern cars now feature advanced emissions technology, ADAS safety systems and costly battery components, which make repairs more expensive and time-consuming. Even relatively minor accidents can lead insurers to declare vehicles total losses when repair, labour and courtesy car costs exceed the vehicle's depreciated value.
The UK continues to face high vehicle theft rates. DVLA figures showed more than 53,900 cars were stolen in 2024, or roughly one every 10 minutes. Luxury SUVs and high-end models remain key targets, particularly Range Rovers, which are frequently dismantled for parts or exported overseas.
These trends have made GAP insurance an increasingly valuable protection tool for vehicle owners, covering the difference between the insurer's settlement and the amount originally paid or still owed on the car.
McClure Fisher said the current market reflects “a perfect storm of high prices, rapid depreciation, rising theft, unpredictable repairs, and economic pressure on drivers.”
As a result, GAP insurance is playing a growing role in protecting UK motorists from substantial financial losses when cars are written off or stolen.
