NO Market Value Clauses
NO Market Value Clauses In Our Policies
Buy a GAP insurance policy incorporating one or more Market Value clause and you're highly likely to receive a reduced payout at the time of claim. The sole purpose of a Market Value clause is to ensure that the GAP insurance policy payout is reduced.
The most common Market Value clause amongst inferior GAP insurance policies is in relation to the motor insurance payout at the time of claim. In simple terms, if the motor insurer's payout is less than what the GAP insurer's preferred valuation "guide" says that your car is worth, the GAP insurer will not cover what they will perceive to be an underpayment by your motor insurer.
To add insult to injury though, if you bought a used car, a Market Value clause may well be called upon to allow the GAP insurer to revalue your vehicle at the time you first bought it. If they find that their guide said your vehicle was worth less than the price you actually paid for the vehicle, the GAP insurer will not cover what they will perceive to have been an overpayment on your part.
One Market Value clause is bad enough. To suffer the application of both could very well result in a substantially lower GAP insurance payout than what you would have received from a policy that had no Market Value clause at all - A policy like the ones we can offer you.
We dropped Market Value clauses from our policies back in early 2013. Sadly there are other providers that haven't followed suit.
The long and short of it is, a GAP insurance policy which incorporates a Market Value clause should be avoided - at all costs.