Choosing the right GAP insurance policy can be challenging. With so many providers and policies on the market, it’s essential to know which one suits your needs best. It is recommended that you compare insurance policies before choosing one that’s right for you, whether you’re a first-time insurer or you’re looking to renew.
In this guide, we will compare the various GAP insurance policies here at ALA with those at Direct GAP, covering components such as value for money, GAP insurance types and customer service. We will also discuss which GAP insurance type suits your needs best, whether GAP insurance is worth it, and ultimately, which policy is the best choice for you.
Generally speaking, GAP (Guaranteed Asset Protection) insurance covers the difference between the market value of your car at the time of a claim and the amount you initially paid for it or any outstanding finance. The best GAP insurance policy for you will depend on your financial situation, how you’ve purchased your car, and your general preferences.
Back to Invoice GAP insurance pays the difference between your comprehensive car insurance provider’s settlement and the original cost of the vehicle or (with ALA) the finance settlement figure, whichever is highest at the time of claim.
Vehicle Replacement Plus GAP insurance will cover the difference between your comprehensive insurer’s settlement and the replacement cost of your vehicle. ALA will pay the outstanding balance on a finance agreement if this is higher.
Contract Hire GAP insurance is suitable for leased vehicles and will cover up to 100% of the outstanding rental payments. ALA also cover any shortfall in your comprehensive insurer’s settlement if needed.
Agreed Value GAP insurance will cover the difference between your comprehensive insurer’s settlement and the Glass’s Guide retail value of your vehicle at the time you purchased your policy.
Before diving into the details of each provider, it’s vital to understand the value of GAP insurance itself. If your vehicle is written off or stolen, standard insurance might not cover the full amount you paid or even enough to cover what you owe on it. This can leave you out of pocket, especially if you’re still paying off a car that you no longer have. GAP insurance bridges this ‘gap’ and ensures you’re not left financially vulnerable. Given the depreciation rate of new cars, having GAP insurance can offer peace of mind, especially within the first few years of purchase.
ALA GAP insurance policies are tailored to your needs, providing bespoke quotes that take into consideration the age and mileage of, and how you purchased your car, plus other important factors. When choosing ALA as your GAP insurance provider, there are a few elements to consider:
Excess contribution: We can provide up to £250 towards your motor insurance excess, with an option to increase this to £1000, giving you extra peace of mind.
Finance cover: If you’re on a finance deal, we ensure you’re not left paying for a car you no longer possess.
Value: Offering competitive rates, we provide excellent value for money with additional optional coverage such as scratch and dent cover and tyre and alloy wheel insurance.
Flexible plans: We offer a range of GAP insurance products catering to different needs, whether you’ve bought your car with cash, on finance, or you’re leasing.
Best rated on Trustpilot: With an excellent rating on Trustpilot, our customer feedback speaks volumes about our services and reliability. As of October 2023, we had a 92% five-star rating out of 16,111 reviews.
GAP insurance types: From Back to Invoice and Vehicle Replacement to Agreed Value and Contract Hire GAP, ALA offers diverse options.
Additional cover: ALA offers scratch and dent cover, tyre and alloy wheel insurance, excess cover and Keycare. You can also transfer your cover to another eligible vehicle with no cancellation fee with ALA; with Direct GAP, there is a £35 cancellation fee, and you cannot transfer your policy over to another vehicle.
Payout rates: ALA has an excellent payout rate, ensuring all legitimate claims are honoured.
Customer service: ALA prides itself on top-notch customer service, with easy claim processes and attentive support.
Direct GAP also provides diverse GAP insurance options.
Excess contribution: Direct GAP also provides excess contributions of up to £1000.
Finance cover: Direct GAP covers any outstanding finance amounts in case of a total loss.
Value: Direct GAP is competitive in its pricing, although the exact policy cost may vary depending on individual requirements.
Flexible plans: They offer a broad spectrum of policies suitable for various purchase methods and car types.
GAP insurance types: Direct GAP provides a comprehensive range of GAP insurance types.
Additional cover: Direct GAP offers scratch and dent cover and tyre and alloy wheel insurance.
Choosing your next GAP insurance policy
Both ALA and Direct GAP offer robust GAP insurance policies, ensuring your financial protection in the unfortunate event of a car loss. Our policies at ALA edge it out with our exemplary Trustpilot rating, high payout rate and consistently positive customer feedback, not to mention our competitive rates and array of flexible plans.