The Rise in Car Theft: Why GAP Insurance Has Never Been More Crucial

In recent years, car theft in the UK has escalated to levels not seen in over a decade. What was once considered an opportunistic crime has evolved into a highly organised and profitable industry, often backed by international crime syndicates. And with limited resources dedicated to stopping these vehicles from being exported, many stolen cars are gone within hours, often for good.

For everyday drivers, this growing crisis has real, immediate consequences, and it’s making GAP insurance more essential than ever.

A System Under Pressure

A recent report by The Times revealed the scale of the challenge. In 2024 alone, nearly 130,000 cars were reported stolen in the UK, a significant increase from the 90,000 reported in 2020. And it’s not just the number of thefts that’s alarming, it’s how quickly and effectively stolen cars are being moved out of the country.

At the Port of Felixstowe, Britain’s busiest container terminal, there is reportedly just one police officer assigned to screen outgoing containers for stolen vehicles. With hundreds of thousands of containers leaving the UK each year, fewer than five in every 100,000 are physically checked. In practice, that means criminals are able to smuggle out stolen cars with little fear of interception.

Cars are often loaded into containers and out of the country within 24 hours. Once they’ve left UK shores, recovery becomes almost impossible.

The Financial Fallout for Drivers

As thefts have surged, insurers have responded with rising premiums, some drivers in high-risk areas are now facing annual insurance costs of £5,000 or more, particularly for high-value vehicles like Range Rovers or Jaguars. According to industry data, the average theft-related payout rose by £319 to £11,800 in Q2 of 2025 alone.

But what many don’t realise, until it’s too late, is that their standard car insurance may not fully cover the value of their vehicle, especially once depreciation is factored in. In December 2024 we conducted some research with YouGov and found that 63% of motorists did not know that there were financial shortfalls with comprehensive car insurance.
In the case of a total loss through theft or write-off, the insurer typically pays out only the car’s current market value. For new or financed vehicles, that figure is often far less than what the driver originally paid or still owes.

This is where GAP (Guaranteed Asset Protection) insurance becomes so valuable.

What GAP Insurance Really Does

GAP insurance is designed to cover the difference between your vehicle’s current market value (as paid out by your insurer) and either the price you originally paid, the amount outstanding on your finance agreement, or the cost to replace the vehicle with a new one, depending on the type of GAP cover you choose.

In an environment where cars are disappearing overseas faster than ever and the likelihood of recovery is slim, this safety net can be the difference between financial ruin and a fresh start.

Are Security Measures Enough?

Many car manufacturers are investing heavily in improving vehicle security. Jaguar Land Rover, for instance, has committed £15 million to upgrade security on older models and has even contributed funding to police efforts at UK ports. These measures are welcome and, in some cases, have led to modest reductions in theft of specific models.

But criminals are evolving too. Keyless entry systems, cloned plates, and "relay attacks" have made it easier than ever for thieves to steal a car silently and without force. Unfortunately, even the most advanced tracking systems can’t guarantee recovery, especially when a vehicle is swiftly loaded into a container and shipped out of the country.

Peace of Mind in a Risky World

With recovery rates plummeting and theft becoming increasingly sophisticated, the need for additional financial protection is clear. GAP insurance offers that peace of mind. It ensures that if the worst happens, you’re not left with a significant financial shortfall or stuck making payments on a car you no longer have.

At a time when vehicle crime is soaring and enforcement struggles to keep up, GAP insurance isn’t just a nice-to-have. It’s a smart move for anyone buying a new or financed car, especially in today’s unpredictable landscape.

If you’re unsure about the level of protection your current insurance provides, we’re here to help you understand your options. Whether you drive a brand new car or a used one on finance, GAP insurance could make all the difference.