If you have just been offered gap insurance by your local dealership the chances are they they will not have offered you any form of deferred gap insurance. instead it is most likely that you will instead have been offered a standard level of combined return to invoice gap insurance.

So why is this and why does not everyone offer deferred gap insurance?

It would be very easy to blame your dealership for not offering you deferred gap insurance, however this would be wrong. It really is not your dealerships fault!

Your dealership is most likely tied to a supplier weather it is he manufacturer or perhaps a finance house they will be tied in someway. This means that if they do not have a deferred level of gap insurance to provide they can not then offer it to you. This in effect explains why even some independent suppliers do not offer it. After all if they can not supply it to you they can not offer it.

So does this mean that deferred levels of gap insurance are not as reliable?

No not at all however it will depend on your own motor insurance company. This is because unlike days of old when offering the new for old style of cover was common place more and more insurance companies are pulling away from the feature. After all it costs a lot of money each and every time  your insurance company has to settle a claim and replace a vehicle. Some may have terms and conditions. For example one insurance company we know of offers new for old however if the exact model is not readily available they will not factory order another vehicle instead they will revert back to market value.

That said there are some very large and reputable insurance companies who do still offer new for old. For example Saga and NFU who both have exemplary standards in customer service both offer the cover as standard on new cars as well as many many more.

So if your motor insurance company does offer new for old and if you have checked for any terms and conditions they may have why not consider a level of deferred gap insurance? The price difference can be dramatic especially if you are considering a longer level of cover.

To summarise why doesn’t every gap insurance supplier offer deferred gap insurance probably because they do not have it!