If you are trying to compare gap insurance it may not be as easy as you first think!

This is because when you compare gap insurance even policies underwritten by the same insurance company may have slightly different terms and conditions. So which elements of a gap insurance policy are the important ones to check?

Is the fact that the gap insurance company you are comparing UK based really that important?

Sorry yes and no is the simple answer. Yes because you need to make sure that the policy is fully regulated and backed by the financial services compensation scheme but other than that no. It purely a customer preference.

Instead when you compare gap insurance why not concentrate on where your claims are handled is this UK based or a call center based outside the UK.

Remember that when you compare gap insurance or any other form of insurance for that matter it is only the terms and conditions as laid out by the insurance company which will be used to settle a claim. So no matter what the marketing, no matter what the promise unless this is written in black and white in your policy terms you should not use it as any part of your decision making.

This is because in 99.9% of cases it is not the insurance company that you are in fact buying your policy from. Instead you are in most cases buying your policy from a broker, supplier, specialist what ever term you prefer to use. In some respects your gap insurance broker is fulfilling the same role as your dealership in that when you need to make a claim they will not be the organisation who have to write the cheque. Instead it is the insurance company.

Insurance companies do not as a rule like to deal direct with the general public so this is completely normal. Instead they agree terms with a specific supplier and then pay the settlements when needed.

For example Tesco insurance is not underwritten by Tesco instead Ageas Insurance Limited.

So as long as you have checked that you are considering gap insurance from a regulated supplier the exact name of the insurance company is simply a personal preference.

So what else should you concentrate on when you compare gap insurance?

The only and main citreia are the terms and conditions and only that !

For example is the purchase price limited?

Are warranties and paint protections covered?

Is your vehicle mentioned on any excluded vehicle lists?

Who gets paid when you need to make a claim?

Can you transfer your policy?

If you are in any doubt contact the supplier and ask any questions you may have.

After all when you compare gap insurance not all policies will be written out in the same way or use the same terminology so always double check before you buy.