MotorEasy sees GAP claims rise as thefts drive payouts

MotorEasy said the average payout for its 10 largest GAP insurance claims rose 17.1% year on year to £27,995. It linked a quarter of its GAP claims in 2025 to vehicle theft.

The figures suggest a wider financial gap for motorists whose cars are written off or stolen and not recovered. The average payout for the top 10 claims increased from £23,913 in 2024 to £27,995 in 2025.

Guaranteed Asset Protection insurance covers the difference between a motor insurer's settlement and either the original purchase price, the outstanding finance balance or the cost of replacing the vehicle with a similar model, depending on the policy. That shortfall can widen when vehicle prices rise, finance terms lengthen and depreciation accelerates.

One in four of MotorEasy's GAP claims in 2025 were theft-related. Among the 100 highest-value claims, 37% involved theft, based on the company's data.

BMW, Ford and Mercedes-Benz were the most stolen brands in its GAP insurance theft claims. MotorEasy said this matched DVLA theft data obtained through a Freedom of Information request, which showed Ford and BMW as the most stolen car brands across the UK in 2025.

According to the same DVLA data cited by MotorEasy, vehicle thefts across the UK rose 12.8% year on year to about 60,900 cars. The increase adds to pressure on drivers already facing higher vehicle costs and longer borrowing periods.

Theft risk

When a stolen car is not recovered, insurers usually treat it as a total loss and settle the claim at its market value at the time of the loss. For drivers who bought a new vehicle at a higher price or used finance, that amount may be less than the original invoice price, the remaining balance owed or the cost of buying an equivalent replacement.

The issue can be especially acute for newer and higher-specification vehicles, where list prices are higher and values can shift sharply. MotorEasy said higher-end electric vehicles were among the models where depreciation could make shortfalls more likely.

Duncan McClure Fisher, Chief Executive of Intelligent Motoring, said: "Our latest GAP insurance claims figures highlight just how significant the financial impact of vehicle theft can be for drivers. A 17% rise in the average payout for the top claims reflects not only the increasing value of claims, but also how quickly vehicles, particularly high-end EVs, can depreciate in today's market, making financial shortfalls more likely and reinforcing the importance of GAP cover."

Driver exposure

MotorEasy said the combination of theft and depreciation is leaving some motorists exposed even after their main motor insurance claim has been settled. The risk is greatest where a car has been bought recently, where the owner paid a premium for specification, or where the finance agreement runs over several years.

It also outlined practical steps that could reduce theft risk, including using secure parking, fitting Thatcham-approved tracking devices, shielding keyless entry fobs in a Faraday pouch and installing software updates.

McClure Fisher said: "With a quarter of our claims as a result of theft, we know how distressing it is for drivers to lose a vehicle, and to then face the added worry of potential financial shortfalls can make it even harder. There are measures drivers can take to reduce the risk of their vehicle being stolen. These include using secure parking where possible, fitting Thatcham approved tracking devices, keeping keyless entry fobs shielded in a Faraday pouch, and ensuring software updates are installed. Just as importantly, motorists should understand exactly what their insurance covers."

The data comes from a business that sells vehicle ownership services and insurance-related products, so it reflects claims within its own customer base rather than the wider insurance market. Even so, the rise in claim values and the prominence of theft align with broader concerns in the motor sector over the cost of replacing newer cars and the persistence of organised vehicle crime.

McClure Fisher said: "In the event of a total loss, standard motor insurance typically pays out the market value at the time of the claim, which may be less than the original purchase price or any outstanding finance. GAP insurance is designed to bridge that difference, so taking the time to understand how it works can help drivers avoid unexpected financial exposure at what is already a difficult time."