Defaqto – what does it all mean?


We believe that the quality and value of ALA policies speak for themselves, not to mention the strength of the positive feedback we receive from our customers.

More and more people are relying on advice from companies like Which? when purchasing financial products, and with an average of over 6500 customers per month searching for Defaqto we can also see that consumers are increasingly reassured by this kind of objective, independent source. It also simplifies what can seem like a daunting and complicated process.

ALA is recommended by companies such as Auto Trader, Honest John, PistonHeads and JCB and delivers the highest level of customer service. Simon England, Managing Director of ALA points out “ALA is one of the largest online providers of GAP insurance, providing cover for almost 10 years. As such the service we provide is first class and this is not something that Defaqto examines”. Whilst it is always helpful to have the starting point that these companies provide, we also believe there are other important factors when buying insurance and other financial products.

To make it as easy as we can for our customers we have decided to feature Defaqto on our site to help potential customers quickly and easily see that our products have been independently assessed and given a 5 Star Rating.

Read on to see our guide to Defaqto.

Who are Defaqto?

Defaqto is a leading independent financial research company in the UK focused on supporting better financial decision making.

Defaqto take impartiality seriously, do not knowingly exclude a product, and are free of any affiliation with any third parties, rating products with a 100% independent methodology.

What is a Defaqto Star Rating?

Star Ratings indicate where a Motor GAP Insurance product sits in the market in terms of the features and benefits it offers.

The higher the Star Rating, the more comprehensive a product will be. Products rated 1 Star are a basic product, with a low level of features and benefits, while 5 Star products provide the highest level of cover with a comprehensive range of features and benefits, and must meet additional minimum criteria in certain areas.

Defaqto Star Ratings are calculated using a scoring system called Data Numerical Analysis, or DNA. They assess between 40 and 100 features and benefits for each product or insurance policy, with each scored from 1 to 5.


The scores for each product are then totalled and all products ranked. Our industry experts determine the scores necessary to achieve 1, 2, 3, 4 and 5 Star Ratings.

The criteria used to determine Star Ratings are based on Defaqto’s views of which features are likely to be important in helping consumers decide which products they need.

What does a 5 Star Rating mean?

Defaqto define a product which has been awarded 5 Stars as “an excellent product with a comprehensive range of features and benefits”.

Compare this to a 4 Star product – “a product with a good level of features and benefits” and 3 Stars – “a standard product providing an average level of features and benefits”

How does a GAP product achieve a 5 Star Rating?

The following features are the main criteria Defaqto use to judge the star rating of a product.

These are all features of our ALA Back to Invoice Plus GAP policy which, along with all of our other policies, has been awarded a 5 Star Rating.

  • Foreign Use: Unlimited
  • Factory Fitted Options: Unlimited
  • Claims Basis: Insurer settlement
  • Maximum Claims Limit: £50,000
  • Motor Policy Excess: £250
  • Transfer Replacement Vehicle: Yes
  • Claims Notification: 120 days
  • Cancellation Return – Insured: Daily pro-rata

ALA GAP Insurance is recommended and awarded by