Intelligent Motoring urges motor retailers to seize GAP Insurance opportunities as consumer appetite returns

Just 10% of dealers offer cover to protect customers after FCA investigation paused sales

Posted on Mar 17, 2025

Despite GAP Insurance now back firmly on the customer propositions table for retailers, Intelligent Motoring estimates that 90% of dealers are not taking advantage of the customer loyalty and value-add opportunities it brings. FCA scrutiny has driven positive changes and brought about enhanced transparency and improved value for consumers. In turn, Intelligent Motoring reports increasing demand, with consumer confidence and appetite gaining pace for its retail partners and through its direct-to-consumer car ownership solution, MotorEasy.

Duncan McClure Fisher, CEO of Intelligent Motoring commented: “With vehicle values normalising after COVID, and electric vehicle residuals declining, claim payouts are regularly exceeding £20,000 to £30,000, demonstrating the critical protection GAP Insurance cover provides. Many retailers appear hesitant to sell the product, with only around one in ten advertising it to customers. This may be due to increased net rates and capped retail premiums, but flexible solutions are available to ensure dealers can offer fair value products that protect consumers, foster invaluable customer loyalty and provide an all-important revenue boost.”

The GAP Insurance investigation has reinforced the importance of transparency, compliance, and customer-centric sales.  As the motor retail industry moves forward, it is now better equipped to provide insurance solutions that protect the financial interests of both dealers and consumers, providing the financial safety net customers and retailers need.

Duncan McClure Fisher continued: “During the investigation, while GAP Insurance sales were paused, the motor retail industry demonstrated its impressive ability to adapt and thrive. Some offered alternative value-added propositions such as Cosmetic, Tyre and Battery Insurance or Insured Breakdown Recovery to support customers.  

“This incredible agility demonstrates that GAP Insurance can be effectively reintroduced by retailers to rebuild revenue. Careful pricing, effective compliance measures, and efficient integration into the sales process, means that they can confidently and successfully offer a GAP Insurance programme.  We have been delighted to find fresh demand from consumers for our MotorEasy offering, some claiming they had been holding out on their next vehicle purchase until GAP Insurance was available again. We encourage those retailers hesitating to make a GAP Insurance return to seize the opportunity.”