It’s almost 1st March 2016! When the new ‘16’ registration is released and lots of people will be looking to get the freshest number plate by purchasing a new car.
Those of you who have visited a car showroom recently will know that, these days, it’s not as simple as just buying a car. Along with being presented with a myriad of purchasing options, you’ll also have to listen to a chat about GAP insurance.
This is actually a good thing. The FCA clamped down on sales of GAP insurance and now insist that dealers register with them in order to sell it. In addition, they have insisted that no-one can purchase GAP insurance until at least 24 hours after they’ve had said chat.
As I’m a Chartered Insurance Broker though, the FCA trust me to provide you with the right advice and I’m allowed to arrange cover for you right away.
With that in mind, I thought it worth detailing the GAP insurance options;
The obvious one that everyone thinks of immediately. Pays the difference between the insurer’s settlement in the event of a total loss and the balance you have left on your finance agreement.
Not quite so obvious this one but, in the spirit of putting my money where my mouth is, the policy that I have in place on the Tiguan I got last year.
You see, it turns out that the finance company can ask you for all of the outstanding payments on your lease agreement. Not ideal when you’d have no car to show for it so this cover was an absolute necessity to my mind. I’m now covered if the worst were to happen.
Purchase Price Protection
This one will pay the difference between your insurer’s settlement and what you paid for the car in the first place. So, rather than having to purchase a car in the same condition as the one you had, you could have enough funds available to go and buy new or newer again.
Total Loss Top-Up
This one adds another 25% onto your insurer’s settlement. So, in that situation where you’re struggling to find exactly the same car as the one you had, here’s a bit more money so that you’re not quite so restricted in what you can afford.
Oh, and if you’re reading this and thinking this would be ideal for the company fleet, rest assured I’ve got that covered too.