Month: May 2014

Why is Gap Insurance so expensive in motor dealers?

It is a question that comes up time and time again. During the process of buying a new vehicle, your motor dealer provides you with a quote for Gap Insurance. Now you may have not even heard of Gap Insurance before, so you may take the usual step of researching it on the internet. This will lead you to one very clear conclusion, the prices charged by a typical Gap Insurance product is far cheaper than the premium your motor dealer may have quoted. In some cases the motor dealer Gap can be four or five times more expensive than the prices you can get on the internet. How can this be? Well before we get into those reasons, let is dispel on of the often given excuses by motor dealers in that ‘You have to be careful with online providers they often go bust, do not pay out, do not cover you for the same (take your pick). Total rubbish. A competitive independent Gap Insurance market The leading independent Gap Insurance brands in the market have been established for a number of years. They also share underwriting (remember it is the insurer who authorises your claim) with many of the leading products you may find in your car showroom. Whilst it may be true to say that many of the online brands may have started out as ‘one...

Read More

Why you should not put Gap Insurance on your finance agreement

When you buy a new car from a motor dealer it will often involve taking out a form of finance agreement to do so. Many of these are arranged through the motor dealer themselves, allowing for low and affordable monthly repayments for the vehicle purchase. Then comes the issue of additional products, such as paint protection, and of, course Gap Insurance. Now it can be a simple decision to put Gap Insurance into the amount of finance you are taking, as it may only be ‘another £10 a month’ but it really is not as simple as that. There...

Read More

Why motor dealers face losing out in the FCA insurance ‘add on’ shakeup

The FCA appear to be ready to flex their muscles regarding general insurance ‘add on’ sales in the UK, following the release of their report in March 2014. Parts of the report were quite scathing, in particular the methods and value provided by motor dealers with products such as Gap Insurance. FCA to change the Gap Insurance market The FCA have proposed to end the ‘point of sale’ advantage provided to the dealers, meaning that they must allow consumers the chance to access and compare other Gap products in the market, before they commit to buying the product from...

Read More

The advantages of PCP Finance agreements

PCP finance, or Personal Contract Purchase is a firm favorite of motor manufacturers and dealers in today’s competitive car market. Often these deals, characterised by low monthly payments with an optional final ‘balloon’ payment, are heavily subsidised by motor manufacturers, with attractive interest rates and finance deposits. Advantages of PCP Finance The clear advantage of these types of deals for the manufacturer is that they know when you have a decision to make on your new car, and you may find that the phone calls begin with a few months left on the agreement, to see of you can...

Read More

When can you claim on Gap Insurance?

Gap Insurance is a simple, financial protection, that can be used to cover the cost of depreciation of your motor vehicle. However it is important to understand that you can only claim on your Gap Insurance in very specific circumstances. The only time you may claim on Gap Insurance cover is immediately after your motor insurer deems a vehicle a ‘total loss’ and beyond economic repair. Gap Insurance for a ‘total loss’ There is a common misconception that the term ‘total loss’ or ‘write off’ is restricted to vehicles involved in an accident, but this is not the case....

Read More
  • 1
  • 2