I talk to hundreds of customers everyday who think that they have new for old style complimentary cover on their own motor insurance and want deferred Gap insurance.
Deferred Gap Insurance can be a good thing but like everything it will have pros and cons.
Deferred Gap Insurance pros..
Not paying for double cover
Deferred Gap Insurance cons…
Not all motor insurance companies offer the new for old style of cover
- Some companies will have mileage restrictions
- Some Comapies will have other terms on conditions
OK so just two pros and three cons deferred gap insurance you would think may not be all it is cracked up to be. Far from it if you have checked with your own motor insurance company and they do offer new for old in the first 12 months why shouldn’t you take a deferred option.
After all the insurance industry is very heavily regulated and this means that your insurance company will have to stand by any terms and conditions that they have committed to. In fact I have just spoken to an elderly doctor who has just bought a new Toyota Yaris. His insurance is due for renewal in February and he as just had an email to confirm that when he renews his policy he will be given 12 months free new for old style gap insurance cover.
He has just bought a deferred gap insurance policy for four years and set it to start 12 months after the date of first registration.
It cost less than £190 and now he can benefit from a total of five years cover. 1st year his own motor insurance then years two, three, four and five gap insurance.
In fact there is one company I know of ( I believe that you have to be over 55 to join) who offer two years deferred gap insurance. I don’t know of any company who currently offer the facility to pre date your policy for longer than 23 months but hey three years ago I didn’t think that anyone would ever offer the 1 year deferred gap insurance facility.