’We continue to work with the rest of the market to address our concerns,’ says executive director

The FCA has allowed several firms to recommence their sales of guaranteed asset protection (Gap) insurance.

In an update, the regulator said firms it had given a green light to included Fortegra Europe Insurance Company, Motors Insurance Company, Amtrust Europe and Financial and Legal Insurance Company. 

The FCA said that they had resumed “with materially lower levels of commission being paid out to those selling Gap, improving value for customers”.

The announcement came after the regulator said in February 2024 that 80% of the Gap market would be suspending sales after feeling that it was failing to provide fair value to some consumers.

It later confirmed that it had sent further requests to the remaining firms to pause sales of Gap insurance, in a second tranche of engagement.

Sheldon Mills, executive director of consumers and competition at the FCA, said: “We took action when our data showed that customers were not getting a fair deal.

’I’m pleased that, following constructive engagement with industry, a significant proportion of the market is now able to restart sales.”


Gap insurance is an add-on to motor insurance that covers the difference between a vehicle’s purchase price and its current market value.

The FCA said its decision to allow firms to continue selling the product “reflects its assessment at a specific point in time”.

It added that it expects firms to regularly assess whether their products are providing fair value to customers and “update their approach where appropriate”.

“Gap insurance can provide a useful service to customers and we continue to work with the rest of the market to address our concerns,” Mills said.