Compare a GapInsurance123 Policy against your motor dealer

There are several ways that a Gap Insurance policy from GapInsurance123 can differ from that from your motor dealer. It is natural you will want to know what to look for, and we have highlighted areas where you may see a difference. The list we provide does not mean all features are different, but we will point out some reasons where you will always see a change when comparing.

Here is a brief rundown of examples where our policies can be different from those offered to you in a showroom.

GapInsurance123 vs Motor Dealer Gap Insurance

1 - Choice of cover - Motor dealers normally only offer one type of 'Gap Insurance' which is nearly always Return to Invoice Gap. This is normally always only ever offered for 3 years, and may even have a fixed maximum payout on the policy.

GapInsurance123 can offer a choice of Finance and Contract Hire Gap, Return to Invoice Gap and Vehicle Replacement Insurance. We can also offer a range of Claim Limits between £5,000 and £25,000. We can also offer Policy cover for between 1 and 5 years depending on the length of cover you require.

2- Policy Features
- Rather than go too in depth here, lets list a series of features GapInsurance123 policies have, how does your dealer policy measure up?

- Deferred Start Date
- If you have replacement cover on your Motor Insurance for the first 12 months, a GapInsurance123 RTI or VRI policy can have its start date deferred to avoid paying for cover twice.

- We can cover a range of vehicles and uses
. Cars, vans, motor homes, motorbikes, taxi's and driving schools can all take any style of GapInsurance123 policy.

- All styles of cover are cancellable at any stage of the cover, with a 'pro rata' refund due directly to you from the insurer of unused premium.

- All styles of policy are transferable (except Finance and Contract Hire Gap), should you change the vehicle during the policy period.

- We cover up to £1500 of dealer accessories shown on the sales invoice, INCLUDING the cost of Paint Protection and non transferable warranty items.

3- Claims procedure and backup
- Here is where you will need to look at the fine print of your dealer policy. All Gap Insurance policies are underwritten by an insurer, and all have their claims handled by an administrator. Despite what your motor dealer may intimate, it is highly unlikely they will ever be involved with any Gap Insurance claim you make.

The underwriting insurer and administrator for the GapInsurance123 policy are experts in the field. How do we demonstrate our confidence in this? There is a written commitment within the policy terms that, providing you supply the necessary documentation, then the Claims Team will settle your Gap Claim within 14 days of your motor insurers settlement.

All claims are handled in the UK and the policies are covered by the Financial Services Compensation Scheme.

4 - Price - It is true to say that No UK based motor dealer has ever provided a comparable Gap Insurance quote at a lower premium than GapInsurance123 to date. We pride ourselves in producing the very best policy possible and making sure that the premium you pay is the best around.

However we are often asked why a motor dealer premium is so much more expensive that one from GapInsurance123. The average price a Gap123 customer had been quoted for a 3 year RTI policy from a motor dealer in September 2012 was over £400. The comparable quote from Gap123 could be less than £100.

Why is this? Well three basic reasons:

Dealers have to charge an increased rate of Insurance Premium Tax when compared to an online broker.

The dealer provides far less business to an insurer than a brand like Gap123, and will not be able to negotiate as good supply terms.

A dealers profit margin in such a product is likely to include commission for a Sales Person, a Business Manager and other dealer staff. Online brokers often have far lower profit expectations due to the volume of products they sell.

So all in all, when you compare a Motor Dealer Gap Insurance Policy with one from GapInsurance123, it is fair to assume that they just are not the same!