The delays in vehicle production as a result of the pandemic and Brexit cause a spike in people purchasing used cars. Demand outweighed supply which meant the value of second-hand cars had increased significantly between 2020 and 2022. The press called it 'The used-car bubble'. However, as production picked up and supply chain issues resolved, second hand vehicle prices started to become a bit more relative to what we were used to pre 2020. The used car bubble started to burst.

This means those who had purchased a vehicle during the height of the bubble, for an inflated price value are at significant financial risk if they needed to make a total loss claim. Typical comprehensive insurance providers only pay out the value of your vehicle at the time of the claim, not at the time of purchase. What's more, insurers are renowned for only paying out a fraction of the vehicle's current market value.

In a national cost-of-living crisis, we needed to educate as many people about the possible financial implications they could face if they purchased a vehicle at the peak of the bubble, got it written off or stolen and did not have GAP Insurance which protects the original value they paid. The challenge was how we would get this information out in the simplest way possible that was digestible and drove people to the ALA Insurance website.