#1 – Choose an A-Rated insurer
FOUR unrated underwriters of GAP insurance have gone bust since 2016.
If you buy GAP insurance backed by an unrated insurer, there’s an increased chance of you being left without cover, when it’s too late to source cover from any other provider.
More details here: https://gapinsurance.co.uk/blog/index.php/2019/02/27/gap-insurance-whats-important-1/
#2 – Choose a UK-based insurer
The FOUR unrated underwriters that have gone bust since 2016 were all offshore companies. Two in Gibraltar and two in Denmark.
Whilst the Financial Services Compensation Scheme offers some protection in the event your insurer goes bust, at best you’ll get 90% of your claim value whilst at worst you may just get back 90% of what you paid for your policy. Try replacing your car with that!
More details here: https://gapinsurance.co.uk/blog/index.php/2019/02/27/gap-insurance-whats-important-2/
#3 – Avoid “Market Value” Clauses
Fact: A GAP insurance policy that incorporates a “Market Value” clause is intentionally designed to pay you less money than a GAP insurance policy without such a clause.
GAP insurance policies that incorporate “Market Value” clauses should be avoided at all costs.
More details here: https://gapinsurance.co.uk/blog/index.php/2019/02/27/gap-insurance-whats-important-5/
#4 – Cash Is King
GAP insurance policies that do NOT pay out in cash to the policyholder, will see you either being forced to allow the GAP insurer to source your next vehicle or, being forced to use a motor dealer of the GAP insurer’s choice.
Some policies will even reduce their payout to you if you’re not replacing your vehicle with the funds from the GAP insurance payout.
Don’t be dictated to. Choose a policy that pays out in cash and leaves you free to dispose of those funds as you see fit.
More details here: https://gapinsurance.co.uk/blog/index.php/2019/02/27/gap-insurance-whats-important-3/
#5 – Money-Back Guarantee
After buying a GAP insurance policy, how long do you want to be able to change your mind? The statutory 14-days… the 21 days that some companies offer or… 30 days?
Would you like to be able to get all of your money refunded or, permit the GAP insurer to retain some of what you paid as a penalty for you having had a change of heart?
Stick to policies with at least a 30-day cooling off period within which you can change your mind and get ALL of your money refunded.
Beyond that, watch our for policies that won’t give you a daily pro-rata rebate of unused premium if you cancel a policy early.
More details here: https://gapinsurance.co.uk/blog/index.php/2019/02/27/gap-insurance-whats-important-4/
