GAP Insurance

Mind the GAP….Protect Your Vehicle

 

 

Ever bought a car from a dealership or finance company? If so, then you’ve probably heard of GAP Insurance.

There are different types of GAP insurance that can protect you from being out of pocket if your vehicle is a total loss due to an accident, fire or theft. For example GAP insurance can help you clear outstanding finance on a vehicle when the motor insurers total loss settlement hasn’t. GAP insurance is designed to work alongside your motor insurance policy to protect you and/or your business from an expected shortfall. GAP Insurance can often be a pressurised sale and expensive.

Through a Broker you will receive honest expert advice and cover at a competitive price.

Fleet GAP Insurance

GAP insurance isn’t just for individuals. With around 80% of vehicles on finance, companies also need to consider their liabilities as having to pay a shortfall is likely to impact on their P&L. Fleet GAP Insurance is available where 3 or more vehicles are insured on one policy. The policy holder can choose what vehicles to insure if they comply with the insurers criteria (no supercars I’m afraid!).

Real Claims

Jackson Lee underwriting, recommended by the British Insurance Broker Association (BIBA), have provided Macbeth with a couple of settled claim examples that demonstrate how fleet gap insurance works.

  • A van has being written off. The insurers settled the claim for £13,950. The finance company required a payment of £23,837.05. The fleet gap insurance policy states that the gap insurers pay the greater of either: the outstanding finance (£9,887.05) or 25% of the motor insurers settlement (£3,487.5). In this case the insurers paid £9,887.05.
  • A car has being written off. The insurers settled the claim for £26,500. The finance company required a payment of £27,613.71. The fleet gap insurance policy states that the gap insurers pay the greater of either: the outstanding finance (£1,113.71) or 25% of the motor insurers settlement (£6,625). In this case the insurers paid £6,625.00.

It’s a misconception that vehicles have to be on a finance agreement to benefit from fleet gap cover.

Use an Insurance Broker for your GAP Insurance

The process involved in obtaining fleet gap insurance quotes is very straight forward and the premiums via an insurance broker can be a fraction of the cost when purchasing via a dealer or finance company.

For more information please contact Tony Gibbs on 0118 9165485 or complete our enquiry form.

Author: Tony Gibbs | October 10th, 2018

Contact the author

Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk