With most members of the public being offered gap insurance from main dealerships in the region of £95 although there is a manufacture who at the moment according to a customer I spoke to this morning is quoting £895) the most common question i am asked is ..

“What is wrong with the gap insurance policies you can buy on line?”

The price difference can be hundreds of pounds so surly there has to be something wrong with the gap insurance policies you can buy online. There has to be a catch! Well no!

Let me show you why the gap insurance prices are so drastcially different and first lets say this once and for all…

The price difference between on line gap insurance suppliers and your main dealership has absolutely nothing to do with

  • The quality of the gap insurance cover.
  • The levels of service
  • The levels of back up
  • The speed of claims payment
  • The expertise of the staff
What is wrong with on line gap insurance?
What is wrong with on line gap insurance?

Instead the price difference is simply because

  • Levels of Insurance premium tax’s are lower when you buy on line in fact 14 % lower
  • The volume of business ( amount of policies sold) means that your local dealership can not compete with on line supplier prices
  • On line business’s as far as i know do not pay commsion to
  • Sales executives
  • Finance houses
  • Manufacturers
  • Head Offices

Instead the most on line gap insurance suppliers do not provide any other services except gap insurance. This means that their staff are highly trained. When it comes to levels of service the gap insurance brokers I tried and yes I have called a few where all exceptionally helpful nothing was too much trouble.

When it comes to speed of claims payment we found one on line supplier who had it written into thier terms and conditions that you would be paid within 14 days of your own motor insurance settlement.

When you read the policies of most on line gap insurance supplier you should find the same if not considerabley more comphrensive levels of cover, with free accident management, cover for paint protection, transferable policies and even a conribution towards your own motor insurance excess.

So what is wrong with gap insurance bought from on line suppliers, well we know know that it is not the price, not the service, and certain not the levels of cover.