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GAP Insurance Sales Rise 70% as UK Drivers Return for the New 26 Plate
Independent provider Total Loss GAP has reported a significant rise in GAP insurance sales at the start of March 2026, with purchases increasing by around 70% compared with the same period in 2025.
The company says the figures coincide with the arrival of the UK’s new 26 registration plate, traditionally one of the busiest periods of the year for new car sales.
According to the broker, early March sales are now back to levels last seen before the pandemic, suggesting the GAP insurance market may finally be returning to more typical conditions after several turbulent years.
A Changing Car Market
Industry observers have identified several factors that may be driving renewed interest in GAP insurance.
Mark Griffiths, Director of Aequitas Automotive Ltd, the company that runs Total Loss GAP, believes the car market itself is beginning to stabilise after the unusual conditions seen during the Covid years.
“It’s encouraging to see the arrival of the new 26 plate bringing renewed interest in GAP insurance,” said Mark. “There are likely several reasons behind the change.”
“The car market has gradually normalised since the Covid period. During those years, we saw unusually high used-car prices, which reduced depreciation in the short term. That situation has now eased, and vehicles are once again following more typical depreciation patterns.”
Vehicle depreciation is a key factor behind the product. GAP insurance is designed to cover the difference between a car insurer’s settlement after a total loss and either the vehicle’s original purchase price, replacement value, or outstanding finance.
Market Conditions Improving
Mark also highlighted the impact of regulatory changes over the past few years.
“The FCA intervention into the market a couple of years ago changed the landscape quite significantly. Fewer insurers were active for a period of time, which reduced competition.”
“More recently, we have started to see the market rebalance, with greater choice returning for consumers.”
The Financial Conduct Authority introduced new rules affecting GAP insurance distribution in 2024, prompting some insurers to temporarily withdraw or review their products while they updated pricing and oversight models. 
Flexible Payments Driving Demand
Another factor influencing demand appears to be how customers pay for cover.
With the cost of buying and running a car continuing to rise, more buyers are spreading the cost of additional protection products.
“Buying a car is already an expensive process,” Mark explained. “That cost can quickly increase when buyers add things like service plans, GAP insurance or protection for tyres, alloys and cosmetic damage.”
“Since introducing a wider range of payment options, including interest-free instalments over six months and longer premium funding agreements, we have seen a growing number of customers choosing to spread the cost.”
Industry data suggests that the majority of new cars in the UK are now purchased on finance, making protection products such as GAP insurance more relevant for many drivers.
Focus on Simplicity
Mark believes part of the appeal of the company’s approach is keeping the purchasing process straightforward.
“We try to keep things simple. We are not on comparison websites, we don’t rely on discount codes, and we avoid promotional pricing, which means some customers pay less than others.”
“Our aim is to offer consistent value from the outset, so every customer sees the same pricing and product structure.”
He also emphasised the importance of insurer security.
“GAP insurance claims can often run into several thousand pounds. At the moment, the average claim we see is around £8,000.”
“Because of that, we believe it’s important to work with insurers that carry strong financial ratings from global credit agencies. When customers buy a policy that may run for several years, the strength of the insurer matters.”
Outlook for the Year Ahead
With the March registration change typically marking the start of a busy sales period in the UK motor industry, Total Loss GAP expects interest in protection products to remain strong through the spring.
If early March trends continue, 2026 could represent one of the strongest years for GAP insurance demand since before the pandemic disrupted the automotive market. .png)