Unfortunately even of you don't claim you will still have to declare this loss when applying for future insurance or risk another company finding a way to reduce what they pay out to you. Since the No Claims Bonus was made completely pointless by the insurance companies greed of offering to "protect it" for an additional premium they now ask you like questions like " have you suffered any loss or damage whether or not it was your fault or if a claim was made or not in the last 5 years". I treat insurance as nothing more than a piece of paper that keeps the police off my back as dots not worth much more than that. They constantly take the piss. The very fact that an insurance company will sell you a policy then try and convince you you need gap insurance to protect yourself by being fleeced by them just seems like it should be illegal. The system is a mess and it doesn't pay to be legit. I once got 6 points and a £900 fine for speeding on the motorway at 4am (96mph). A local scroat who waited for a pensioner to reverse his car out of the garage, hit the pensioner over the head when he got out to close the garage door, stole the car and then went on a joyride and police chase got a one year ban on the license he didn't even have and a £100 fine. Not that I'm bitter.