Cheap gap insurance does not mean inferior quality.
It does not mean that you will have inferior levels of customer service, back or support. It does not mean that you will have problems when you come to make a claim. In fact the most extreme I have heard is that a customer was told if they bought a cheap gap insurance policy online it would not cover delivery charges!
When you by your gap insurance directly from the dealership that you have bought your vehicel from they are legally bound to charge you a higher rate of ITP. ( Insurance Premium Tax)
So when you look on line at gap insurance brokers you may think that the difference in price is because there must be something wrong with the quality.
Far from it you can find cheap gap insurance policies online at a fraction of the cost of dealership prices.
There are however some things to check before you buy any cheap gap insurance.
Is the policy fully FSA regulated
Is the policy backed by the financial services compensation scheme.
I good tip is to also look who is actually underwriting the policy. Even thought they might not be household names in the gap insurance world they could be massive.
So next time your dealership says that there must be something wrong because the price is so different just remind yourself…
You are not buying a cheap gap insurance policy you are just getting better value for money.
You can also argue that when you look online at various brokers the prices all seam to be around about the same , say within £20 or £30 pounds of each other.
Would that then not mean simply that it is the online brokers who are charging a more realistic price.
So in brief cheap gap insurance is not cheap it is just better value for money.