Warranty Solutions Group has launched a new generation of GAP products designed to reflect rising write-off risk and growing gaps between insurer payouts and customer expectations.
The new range of products is being launched through its regulated subsidiary, Warranty Professionals Ltd, as vehicle valuations fluctuate and insurer settlements come under increasing pressure.
The updated GAP line-up includes Finance GAP, Combined Return to Invoice and Finance GAP, and a rolling monthly GAP option.
Many UK dealers had stopped offering GAP following the FCA’s (Financial Conduct Authority) probe into the product.
The FCA reviewed GAP in 2024 to make sure the product was representing fair value for customers.
However, the industry regulator gave the greenlight for GAP sales to restart.
Widening mismatch between payouts and true market value
WSG said the products are designed to respond to a widening mismatch between insurer payouts and the true market value of vehicles at the time of loss.
Unlike traditional GAP cover, which typically only bridges the difference between an insurer settlement and the original invoice price, the new products also protect customers where insurer payouts fall below market value. In such cases, the shortfall is covered up to the original invoice price, which WSG said provides greater certainty at the point of claim.
The GAP products are available for ICE, hybrid and electric vehicles, as well as light commercial vehicles, for vehicles priced up to £125,000.
Motorcycle and motorhome GAP products are due to follow in Q2.
WSG said all three products integrate with its existing systems, allowing dealers to quote, register, track and report on warranty and GAP performance through a single platform.
The company said the products have been developed with ‘a focus on compliance, with clear documentation, transparent cover logic and defined sales narratives’.
WSG said this approach is intended to support dealers operating in a market subject to increasing regulatory scrutiny and more value-conscious consumers.
Phil Miskelly, OEM and corporate sales director at WSG, said: “Write-off risk has changed significantly over the last few years.
“Vehicle values are more volatile, insurer settlements are under pressure, and customers are far less financially resilient than they were even five years ago.
“These products have been built to reflect today’s reality, not legacy assumptions.
“For dealers, it’s about offering clear, compliant protection that stands up at the point of claim and supports confidence in the sales process.”
Founded in 2021, WSG now works with almost 3,000 dealer partners and supports hundreds of thousands of motorists each year.
WSG added that, where required, dedicated GAP specialists can manage the sale directly with customers, supporting compliance and freeing dealership teams to focus on vehicle sales and customer retention.