Why Total Losses Are More Common Than You Think
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Why You Need Total Loss Shortfall Insurance
Many drivers believe that serious accidents won’t happen to them or that their comprehensive auto insurance will cover everything. However, statistics tell a different story: 34% of British drivers have written off a car. When this happens, your insurer typically only pays out the current market value, not the price you originally paid. This shortfall can leave you thousands of pounds out of pocket, making it difficult to replace your vehicle.
If you’ve never considered what happens after a write-off, this article will explain the potential shortfalls, the financial implications, and how GAP insurance from an award-winning provider can protect you.
1 in 3 British Drivers Write Off a Car – Don’t Fall Short
Have you ever thought:
"A write-off won’t happen to me."
"My comprehensive car insurance covers everything."
"I’ll deal with it if it happens."
Avoiding the initial cost of Total Loss Protection might seem logical, but the reality is that accidents happen, and without coverage, you may face unexpected financial burdens.
Car Write-Off Statistics
Writing off a car is more common than most people think:
34% of UK drivers have written off a vehicle.
7% have experienced a total loss in the last five years alone.
Despite this, many drivers misunderstand their car insurance coverage, assuming they’re fully protected when, in reality, they’re not.
How GAP Insurance Helps
If your car is declared a total loss due to an accident, theft, fire, or flood, your insurer will only cover its market value at the time. But cars depreciate rapidly:
New cars lose up to 20% of their value in the first few months.
Used cars can lose up to 40% within three years.
GAP (Guaranteed Asset Protection) insurance ensures that, in the event of a write-off, the difference between your insurance payout and the cost of replacing your car is covered. Whether you bought your car outright, financed it through PCP, or leased it, GAP insurance guarantees you’re not left financially stranded.
Not So Comprehensive Car Insurance
Did you know?
81% of UK drivers didn’t realise there would be a financial shortfall after a write-off.
63% assumed their comprehensive car insurance covered everything.
The Truth About "Comprehensive" Cover
Comprehensive car insurance might sound reassuring, but it often doesn’t cover the full cost of replacing your vehicle. A total loss settlement only accounts for the current market value, which could leave you covering:
Outstanding loan or finance agreements.
Insurance excess payments.
Negative equity from depreciation.
The cost of a like-for-like replacement.
GAP insurance bridges this gap, ensuring you won’t have to dip into savings, take out loans, or settle for a lower-value car after a write-off.
65% Can’t Afford a Replacement After a Total Loss
It’s a harsh reality: two-thirds of UK drivers couldn’t afford to replace their vehicle with their insurance payout alone. This means that without GAP insurance, you might find yourself unable to buy even a market-value alternative.
The Hidden Costs of a Write-Off
When your car is written off, your insurer’s settlement often falls short, meaning you might have to cover:
Loan repayments or lease payments.
Additional costs like excess fees.
The financial strain of finding a suitable replacement.
With many households already feeling the effects of the cost-of-living crisis, being left without a car or having to pay more than expected for a replacement can cause unnecessary stress.
How GAP Insurance Helps
GAP insurance ensures that you have the financial security to replace your car without struggling. It covers the difference between what your insurer pays and what you need to get back on the road with a like-for-like replacement.
4x as Many Brits View Insurance Negatively vs Positively
Insurance often gets a bad reputation:
41% of drivers have a negative opinion of insurance.
Only 11% view insurance positively.
Why? Many people feel frustrated by hidden fees, complex policies, and poor claims handling. However, only 11% of drivers consider reviews and reputation when choosing a policy, while 51% prioritise a cheaper price.
Why Choose ALA Insurance for your GAP cover?
ALA believe in transparent, flexible, and trustworthy insurance.
No hidden fees or surprise charges.
Coverage for new and used cars, leased or purchased.
Protection for vehicles valued between £5,000 and £125,000.
A 99% payout rate and 4.9-star Trustpilot reviews.
Don't Risk the Financial Fallout of a Write-Off
Writing off a car is more common than you think. The financial impact of a total loss can be severe, but GAP insurance from ALA protects you from unexpected costs and ensures you can replace your vehicle without financial strain.
Get a quote today and drive with confidence. USE CODE JIM10 for a 10% Discount site-wide!