GAP Insurance - from a car dealer? Really?!

[ChrisKnottIns]

GAP INSURANCE - from a car dealer? Really?!

If you're buying a new car in the coming weeks you might also be considering GAP Insurance.

But do you really want to be buying an insurance product from a car dealer? Wouldn't you have more peace of mind if you used an insurance expert who can give you impartial advice that isn't connected to selling you the car? Chances are you'd get a better price for the cover too. A serious saving!

If you'd like us to quote for your GAP Cover or you just want advice please give us a call on 0800 917 2274 (or 01424 200477). Alternatively, you can use our quote & buy facility at https://www.chrisknott.co.uk/GAP

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Don't forget to call us if your car insurance is due either. We have great rates available under our special car club scheme that members can enjoy.


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"Took my policy out with you guys this morning. Can't remember the lady I spoke to but she was great and told me everything that you guys need. Just waiting on the paperwork now so I can forward those documents you require. Great price too, beat my renewal by >£300!! Plus with a better excess and what appears to be a better policy. Top service! Thank you!" Ant21, Astra Owners Network

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[audigex]

So how does this work if, say, I already have GAP insurance on a car I purchased new, which is due to run out in 12 months.

Can I take out a policy still, after 4 years of ownership, and how is the value calculated?

 

[ChrisKnottIns]

Yes, you can. That's a Valuation GAP policy (which isn't available online just yet). That uses the Parkers Guide value at inception and guarantees that for 3 years. The car has to be less than 8 years old at inception and have done less than 80k miles.

 

[ChrisS1]

Hi there,

Can you confirm that your combination GAP policy offers the same (or greater) level of cover as the cover offered by Jardine Motors Group?
Could you also confirm that your cover has no significant exclusions we should be aware of?
Finally, can you tell me what % of claims on your policy are successful vs rejected?

The reason I ask is that I don't want to take the cover offered by the dealership as it is much more expensive than your cover (I got a quote yesterday). The dealership advised me (quite rightly) to check the level of cover is as good as (or better) than theirs.
I requested a copy of your policy wording to compare to the dealership's policy wording. I consider myself to be a reasonably intelligent person, but to be honest the policy wording in both cases is pretty ambiguous (in my opinion!).

Many thanks in advance

 

[ChrisKnottIns]

Err, please can you supply details of their cover for us to compare. We don't inherently know what theirs covers.

 

[ChrisS1]

Err, please can you supply details of their cover for us to compare. We don't inherently know what theirs covers.

No problem, please see below images of the Key Facts, taken from the brochure supplied by the dealership.

 

[ChrisKnottIns]

Hi ChrisS1,

The provider is the same and it looks to be a very similar cover. The terminology is slightly different in places, though I think the cover is comparable. So here's an explanation of our cover as requested.

Ours covers the shortfall between the insured value and either the finance early settlement figure or the Net Invoice Selling Price (NISP). The NISP is the purchase price of the vehicle including any discount given, but excluding any warranty, new vehicle registration fee, any insurance premiums, road fund licence, fuel and paintwork protection applications, any arrears or negative equity transferred from a previous agreement.

Our indemnity limits are different though:
For vehicles upto £15,000 the shortfall limit is £7,500
From £15,001 to £25,000 the shortfall limit is £10,000
From £25,001 to £125,000 the shortfall limit is £25,000

All those limits should be more than enough to cover the shortfall between your motor insurance payout and the NISP or finance early settlement figure.

The dealers version covers cars up to 10 yrs old with upto 100,000 miles on the clock at policy inception. Ours is for vehicles upto 8yrs old with upto 80,000 miles at inception.

The only other difference I noted was that you can only purchase ours within the first 90 days of ownership and the cover is for 3 years. The dealer's version gives you 100 days and an option of 3 or 4 years it seems.

For any further comparison please see our full Policy Wording (https://www.chrisknott.co.uk/docs/GAPC_Wording.pdf) or Summary (https://www.chrisknott.co.uk/docs/GAPC_Summary.pdf)

I can't see why there's such a price difference apart from the fact that there are more mouths in the dealer's chain to feed - dealer, provider and insurer.

best,
Nick

 

[ChrisS1]

Thanks Nick,

That's a detailed answer and very helpful!

It's reassured us that the level of cover is sufficient and we will take out a policy with you when we get the car.

Many thanks again, Chris

PS: the PCP is over 4 years, and your cover is only 3 years. I can't see that being an issue as after three years it is extremely unlikely that the settlement figure would exceed the market value of the car. What are your thoughts on this?

 

[ChrisKnottIns]

That may be the case, I don't know what your finance figures are but if the difference between the motor insurance payout and the NISP is greater than the gap between the NISP and the early settlement figure, you'll get the larger amount - which could contribute to your deposit on a new finance agreement for a replacement vehicle.