GAP for a car over £125k

[Ki5h]

I have deleted my initial message from this topic.

Just seen FCA have imposed a pause of the market, so disregard this.

Edited by Ki5h on Tuesday 14th May 14:36

[Gnevans]

I thought the FCA had effectively banned it.

[alscar]

Gnevans said:

I thought the FCA had effectively banned it.

They have paused all selling ( from the 30th April )and banned dealers themselves from selling it.
ALA as a specialist provider is supposedly cautiously optimistic about the pause being lifted for them and presumably other specialist providers over the next 2-4 weeks apparently.

[Panamax]

"This action follows findings in the FCA’s latest fair value measures data, which shows that only 6% of the amount customers pay in premiums for GAP insurance is paid out in claims.

"The FCA has seen examples of some firms paying out 70% of the value of insurance premiums in commission to parties involved in selling GAP policies."

Lovely people.

[alscar]

Panamax said:

"This action follows findings in the FCA’s latest fair value measures data, which shows that only 6% of the amount customers pay in premiums for GAP insurance is paid out in claims.

"The FCA has seen examples of some firms paying out 70% of the value of insurance premiums in commission to parties involved in selling GAP policies."

Lovely people.

Indeed but tarring all of the providers with the some brush with the resultant effect that customers aren’t able to protect their potential loss is hardly treating customers fairly.
I guess that’s why the specialist providers ( and not the dealers ) are cautiously optimistic that the pause for them will be lifted.

[Doddler]

I bought GAP insurance for my 991.2 GT3 a year ago. Cost about £300 for 3 years through rivierainsurance as a backup to the Admiral main policy for the car as I had doubts about the value Admiral would place on the car in the event of a total write off. This combined insurance was still cheaper than the next cheapest quote I got for a main policy.

[HoneyBadgerUK]

GAP Insurance sales can resume from the 1st July (the FCA have said that they can, it doesn't mean that they will, or that all providers will).

In some cases providers are looking to lower prices and decrease commission paid to introducers (e.g. dealers). In some cases this commission will change from a % to a flat fee, decreasing the incentive for sales people to keep the price high.

If I were buying now I'd be tempted to wait until July...

Source: I work in online car sales

[bencollins4]

Doddler said:

I bought GAP insurance for my 991.2 GT3 a year ago. Cost about £300 for 3 years through rivierainsurance as a backup to the Admiral main policy for the car as I had doubts about the value Admiral would place on the car in the event of a total write off. This combined insurance was still cheaper than the next cheapest quote I got for a main policy.

I think you need to read your t’s and c’s properly if you think GAP is there to top up a below-par total loss valuation. The GAP / RTI insurer usually insists on a ‘fair’ value before they will look at settling the claim. They certainly won’t pay out more than they need to where they feel the primary insurer has under-valued a vehicle.

[Nickarcher82]

HoneyBadgerUK said:

GAP Insurance sales can resume from the 1st July (the FCA have said that they can, it doesn't mean that they will, or that all providers will).

In some cases providers are looking to lower prices and decrease commission paid to introducers (e.g. dealers). In some cases this commission will change from a % to a flat fee, decreasing the incentive for sales people to keep the price high.

If I were buying now I'd be tempted to wait until July...

Source: I work in online car sales

How long after new car purchase can you buy GAP?

[HoneyBadgerUK]

Nickarcher82 said:

How long after new car purchase can you buy GAP?

Typically up to 90 - 180 days for a used car (depending on GAP type, like back to invoice or vehicle replacement), and up to a year for a new car.

On Friday ALA weren't quoting for GAP, looks like today they are, so it could be that providers have taken the FCA's guidance as a green light to sell (the 'block' on GAP sales was always voluntary as requested by the FCA, never an official ban)

Edited by HoneyBadgerUK on Saturday 25th May 19:12

[Wheelspinning]

bencollins4 said:

Doddler said:

I bought GAP insurance for my 991.2 GT3 a year ago. Cost about £300 for 3 years through rivierainsurance as a backup to the Admiral main policy for the car as I had doubts about the value Admiral would place on the car in the event of a total write off. This combined insurance was still cheaper than the next cheapest quote I got for a main policy.

I think you need to read your t’s and c’s properly if you think GAP is there to top up a below-par total loss valuation. The GAP / RTI insurer usually insists on a ‘fair’ value before they will look at settling the claim. They certainly won’t pay out more than they need to where they feel the primary insurer has under-valued a vehicle.

If taking out GAP insurance, you would always take the RTI (return to invoice) policy.
If, 3 years down the something bad happens, the GAP insurance covers from what the value of your insurers deem as a fair price, to what you originally paid.

That's a no brainer.

[Petrus1983]

bencollins4 said:

I think you need to read your t’s and c’s properly if you think GAP is there to top up a below-par total loss valuation. The GAP / RTI insurer usually insists on a ‘fair’ value before they will look at settling the claim. They certainly won’t pay out more than they need to where they feel the primary insurer has under-valued a vehicle.

Admiral fulfils the requirements set by the FCA on what constitutes a fair market value and as such the GAP insurers have to comply with their side of the offering.