Study suggests that the total loss to UK motorists over the last five years might be £8.4 billion | PROMOTED
By Advertorial / Monday, March 21, 2022
Data from a new YouGov study, conducted by ALA Insurance, has uncovered how much motorists lose when their vehicles are written off or stolen, despite having fully comprehensive insurance cover.
Research found that 12 per cent of UK motorists have had a vehicle written off or stolen in the last five years (YouGov 2022), meaning an estimated 6,350,000 motorists have been affected by this ordeal. The study found that only 17 per cent of motorists are able to afford a like-for-like vehicle replacement using the comprehensive insurance pay out alone, leaving the majority with a huge and unexpected financial burden.
Simon England, Founder and MD of ALA Insurance explains, “It’s a common misconception that comprehensive insurance is enough to protect the full value of your vehicle should the worst happen. Unfortunately, this will only guarantee a pay-out based on the vehicle’s depreciated value at the time of the claim, and with some losing as much as 40 per cent of their value after the first year of ownership, sadly this means many will lose thousands of pounds if they need to make a total loss claim.
“Our research shows that motorists are left, on average, £1,322 out of pocket after receiving their comprehensive insurance pay out following a total loss claim, leaving 57 per cent unable to afford a like-for-like replacement. An accident or theft is already a mentally and physically difficult time, but that stress can be magnified when coupled with the financial loss and the inability to afford a suitable replacement car.”
It is estimated that the total loss to UK motorists over the last five years is £8.4 billion* (YouGov 2022). ALA GAP Insurance protects the original value of your vehicle and can be purchased in addition to a comprehensive insurance policy. It closes the ‘gap’ between the comprehensive insurance pay out and the vehicle’s value when purchased, meaning motorists can always get back what they originally paid for the vehicle.
Despite thefts and write-offs increasing year-on-year, the majority of motorists (59 per cent) have never heard of GAP Insurance, and only 9 per cent have it, meaning its benefits are largely still unknown.
England continues, “One of the common misconceptions about GAP Insurance is it’s an expensive unnecessary cost, which couldn’t be further from the truth. Our average three-year policy costs £183, which works out at £5 a month. With so many bills on the rise this year, we want to make sure more motorists know what GAP Insurance is, so they have the choice and don’t have to lose a penny if the unexpected should happen.”
- For more information or to get a GAP Insurance quote, click here and use code piston12 for an extra 12% off
*Calculation by ALA Insurance. Average out of pocket cost (£1,322, YouGov 2022) multiplied by the estimated number of motorists who have had a vehicle written off or stolen in the past 5 years (12% of 35,900,000 motorists in the UK = 6,350,000, YouGov 2022)
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