GAP (Guaranteed Asset Protection) insurance isn’t just reserved for brand new cars, or those on finance; GAP insurance can be provided to a wide range of vehicles, even those bought privately or from second-hand. However, if you buy, finance or lease your vehicle from a car dealership, they may try to sell you their GAP insurance policy. If you haven’t even looked around for the best deal possible, should you accept their GAP coverage provisions?
In this guide, we will explain the parameters surrounding GAP insurance coverage and privately bought cars, whether you should buy your GAP cover from a dealership, and when the very best time is to buy your policy. Also, we will highlight the benefits and restrictions, as well as our GAP insurance policies here at ALA.
There are various GAP insurance policies available, each suited to your specific situation and vehicle. These include Back to Invoice GAP insurance, Vehicle Replacement GAP insurance, Contract Hire GAP insurance, and Agreed Value GAP insurance. If you buy your car from a private seller, you can still obtain a GAP insurance policy. Agreed Value GAP insurance applies to cars, pickups and vans that have been bought privately. It also applies to vehicles that don’t meet the requirements for Back to Invoice or Vehicle Replacement.
Agreed Value policies have no mileage or age limits, as long as you have a valuation of what your car is worth from the Glass’s Guide. Also, unlike most GAP insurance policies, there is no time limit on when you can purchase Agreed Value GAP insurance. You can take out a policy at any time to protect yourself against future depreciation.
A common way to purchase or finance a car is through a garage or dealership. The dealer may try to sell you GAP insurance as an extra incentive; they should highlight the various benefits of taking out a policy, but it will probably be more expensive than most GAP insurance policies from independent providers with not additional benefits. In fact, car dealerships were recently told by the Financial Conduct Authority (FCA) to lower the price of their GAP insurance policies, or stop selling it altogether.
It may be tempting to accept their offer without shopping around to save yourself some time and effort. However,
GAP insurance from a franchise dealer can cost up to 61% more than a policy from a specialist GAP insurance company. Also, dealers are likely to gain commission from selling you GAP insurance, so as long as they hit their targets. With a trusted GAP insurance company like ALA, you’re going to get all the information you need about the cover, excellent customer service if you need to speak with one of the team, as well as a quote that won’t break the bank.
To see how much money you could save by choosing ALA rather than a dealership, you can start building your quote here.
If you bought your car, pickup or van from a private seller, you could take out a GAP insurance policy whenever you like. There are no time restrictions, so you don’t have to worry about getting a quote before your allocated days are up within a certain time frame. This allows you to get everything in order, from your comprehensive car insurance to your vehicle tax, before you acquire GAP coverage. There are also no age or mileage restrictions on Agreed Value GAP policies.
If you bought your car from a VAT-registered dealer, different GAP insurance cover policies have different time limits. Back to Invoice, also known as Return to Invoice , has a 180-day window in which you can buy your policy, OR less than 365 days if you have new car replacement cover from your motor insurer while the car is less than 12 months old. If you opt for a car finance agreement or buy the car outright, you can take out a Vehicle Replacement Plus policy, which has a 90-day window from the day you acquired your vehicle. Contract Hire Plus has more leeway, with a 365-day window.
If you would like to discuss a quote or policy for your vehicle, you can get in contact with our team today.
If you buy your vehicle privately, there are some restrictions that you need to be aware of. As previously mentioned, the vehicle must be less than ten years old, and it must have clocked less than 100,000 miles. Vehicles such as Ferrari’s, Lamborghini’s and Maserati’s are excluded from ALA policies, as well as motorcycles and mopeds. Any vehicles that are driven for reward purposes, such as taxis and courier vehicles, are also excluded.
If you are buying your new car from a dealer, the same restrictions apply. However, with Back to Invoice Plus, there is no mileage limit. The dealership must be VAT registered, and if you have a Vehicle Replacement Plus policy, the car must be less than seven years old and mileage must be no more than 80,000.
You can find out more about the different restrictions on our website.
GAP insurance, no matter whether your car is brand new or a few years old, can help you recover the amount between how much your insurer pays out and the vehicle’s market value when you purchased it if your car is a total loss. Cars depreciated rapidly, and GAP insurance can help you stay ahead of the curve. When buying privately, you are still entitled to all the benefits that GAP coverage has to offer, so enquire about our Agreed Value policies today.
If you bought your vehicle from a car dealer, take a moment before you accept the GAP policy that they offer you. Buying from a reputable insurance company can save you money, and you will also see the benefits of a friendly customer service team.
All of our GAP insurance policies are competitively priced and tailored to your preferences. If you buy privately, our Agreed Value policies are available for up to five years. We can build a quote depending on the type of vehicle you drive and how you bought it, assigning you to the best policy for your needs.
If you would like to discuss our policies further, do not hesitate to get in touch with us today.
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