Remember gap insurance for your new ‘22’ plate vehicle
Are you looking forward to the delivery of your new 22 registration plate vehicle? Having a new car is an exciting time, but it’s important to make sure you have the right insurance in place to make sure that if the worst was to happen you are fully covered.
It’s never been easier to buy a new 22 registration plate vehicle and perhaps you are opting for an electric model this time as fuel prices are set to increase even further. With retailers offering click and collect for online purchases, and nationwide delivery, flexible finance and a 7 day money back guarantee, purchasing a new ‘22’ registration plate vehicle is quick and easy.
BUT new cars depreciate in value heavily especially in the first year and this combined with affordable finance deals can create a ‘GAP’ between what the vehicle is worth and what the customer owes to their finance company. In the event of a total loss this can result in the customer being left to find additional funds to clear their outstanding debt.
Having GAP insurance is the ideal cover to protect the value of the vehicle so that you can enjoy your new vehicle and safeguard your investment so you are not out of pocket if you have an accident.
So for example if you had a Combined Purchase Price Protection and Finance GAP Policy, this will either clear the outstanding finance or alternatively pay the difference between the motor insurer’s settlement and the customer’s original invoice price (whichever figure is greater).
Sutcliffe & Co Insurance Brokers can offer GAP insurance but often dealers have the monopoly of the market by offering GAP insurance at point of sale of the vehicle. Fortunately we are seeing a change in the industry as the FCA wants to see competition in this market, and insurance brokers can offer a more personal and tailored solution for customers at a generally lower premium.
The dealer equivalent and broker specific products at Sutcliffe & Co Insurance means that we can offer Fleet GAP insurance, critical for businesses operating vehicles on lease, an agreement not designed to be cancelled early with punitive charges.