No Hidden Clauses
If you’re unlucky enough to have your vehicle stolen or written off in an accident your Comprehensive insurer will only pay you the market value of the car at the time.
This market value is usually taken from Glass’s Guide, the leading British motor traders guide to used car prices, often referred to in the trade as "The Bible."
If you get less than the Glass’s Guide retail value from your insurer and your GAP policy contains a market value clause, you could be left with less money that you thought. Your GAP policy will only pay from the Glass’s Guide value, not what you’ve actually been paid by your motor insurer, leaving you out of pocket.
ALA do not have these clauses in our policies, we will simply cover the difference between your motor insurer’s settlement to the original cost of your vehicle.
Most of the time, your GAP policy expires when you sell your vehicle; ALA will let you transfer the unused premium in your policy if you decide to change your vehicle – and we won’t charge any admin fees!
FSCS Protected Underwriters
It can be difficult to know who to trust. ALA can give you peace of mind as a reputable company that is fully authorised and regulated by the Financial Conduct Authority.
All policies are covered by the Financial Services Compensation Scheme (FSCS).
Time Limit to Make a Claim
Most GAP policies allow 30 days to make a claim but ALA gives you a minimum of 120 days, giving you that extra time just when you might need it most.
A number of motor insurers offer new-for-old replacement if a brand new vehicle is written off in the first twelve months. This might make you think that you need to defer the start of their GAP policy or that you don’t need GAP insurance at all.
However, if you decide not to buy GAP and your car is written off in the first year, you could be left out of pocket. If your car is written off your insurance company might only pay you the market value of the car, not the full replacement cost. Each insurance has different terms and conditions, and in the small print may exclude certain write off scenarios - with some insurers if the cost of the damage is less than 60% of the list price of the vehicle (rather than the market value of the vehicle) they may only give you market value.
You might think it’s a bit of a “belt and braces” approach but you could choose to have your GAP policy running alongside the cover from your motor insurer.
If your insurer gives you a new replacement vehicle, then ALA will transfer your policy onto that vehicle (there may be a balance to pay for the new policy). If they only pay you market value then you can claim on your GAP policy and not be left out of pocket.