New ‘22’ Registration Plate in March. Remember to offer GAP Insurance…
From 1st March all new cars registered will have the latest ‘22’ registration plate and many consumers and businesses will be upgrading to the latest models with some purchasing their first fully electric vehicle.
Buying a new car has never been easier with online retailers offering click and collect and nationwide delivery, combined with flexible finance options and 7 day money back guarantees.
Purchase options such as the ever popular Personal Contract Purchase (PCP) and simple leasing deals offer customers the opportunity to own their dream car but with an affordable monthly payment.
However should their vehicle be stolen or damaged in an accident and written-off, their dream car could soon turn into a nightmare.
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.
GAP insurance can protect the value of their vehicle so they can completely enjoy their new motor without worrying what will happen if the unfortunate happens.
For example our Combined Purchase Price Protection and Finance GAP Policy will either clear the outstanding finance or pay the difference between the motor insurer’s settlement and the customer’s original invoice price (whichever calculation is greater).
We have dealer equivalent and broker specific products, such as our popular Fleet GAP insurance, a must have for businesses operating vehicles on Lease, an agreement not designed to be cancelled early with punitive charges.
Dealers have the monopoly of the market by offering GAP insurance at point of sale of the vehicle, but 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.
Our GAP insurance products are available via our in-house online broker portal (ABEL), allowing brokers to quote, bind and amend cover with ease.