Click4Assistance UK Live Chat Software Gap Insurance change long overdue - Business Insurance Burnley
Get a Business Quote
Get an Ambulance Quote
01756 802 100
01282 817 277
info@westcraveninsurance.com
Menu
  • West Craven Insurance
    • About Us
    • Meet The Team
    • Latest Insurance News
    • Testimonials
    • Job Vacancies
  • Commercial
    • Vehicle Insurance
      • HGV
      • Motor Trade
      • Motor Fleet
      • Van
      • Breakdown Cover
      • Guaranteed Replacement Vehicle
      • Excess Protection
      • GAP Insurance
    • Office Insurance
      • Cyber
      • Office
      • Combined Liability
    • Property Insurance
      • Commercial Property
      • Landlords
      • Hotel & Restaurant
      • Shop
      • Salons
      • Sports and Social Clubs
    • Other Insurance
      • Commercial Liabilities
      • Directors & Officers
      • Farm & Agricultural
      • Goods In Transit
      • Professional Indemnity
      • Legal Expenses
      • Tradesman
  • Ambulance and Medical
    • Private Ambulance Insurance
    • Emergency Response Vehicles
    • Multi Vehicle Fleet
    • Paramedic Insurance
    • Medical Equipment
    • Medical Malpractice
    • Public Liability
    • Employers Liability
    • Buildings & Contents
    • Office Combined
  • BASICS Scheme
  • Corporate Risk Management
    • Risk Assessment
    • Business Start Ups
    • High Net Worth
  • Personal
    • Vehicle Insurance
      • Car
      • Motor Home
      • Van
      • Motorcycle
      • Breakdown Cover
      • Guaranteed Replacement Vehicle
      • Excess Protection
    • Property Insurance
      • House
      • Property Owners
    • Other Insurance
      • Travel
      • Legal Expenses
      • GAP Insurance
  • Contact Us
Facebook
Twitter
Trustpilot

Blog

  1. Home
  2. News
  3. Gap Insurance change long overdue

Gap Insurance change long overdue

October 17, 2016Lisa Clarkson

New FCA ruling will protect consumers
THE Managing Director of Earby-based West Craven Insurance Services has welcomed new proposals by the Financial Conduct Authority that aim to protect consumers purchasing Gap Insurance.

Ian Clarkson has suggested that many people were being mis-sold or vastly overcharged for GAP insurances policies that offer cover for the difference between what you owe on the vehicle and its market value.

“Gap Insurance is really important because if you have a vehicle that is written off, you’ll still be liable to satisfy your finance or lease agreement. Given that your insurance will pay out the market value of your vehicle, you’re likely to get less than you owe on your finance deal, especially when interest is taken into account,” said Mr Clarkson.

“Gap insurance covers you for that shortfall, but it should be relatively inexpensive. We’ve heard of examples where people got deals from their motor dealership without being aware that they weren’t obliged to sign up there and then. They are also often charged outrageous fees, where the dealership is taking 90 per cent commission.”
New proposals by the Financial Conduct Authority (FCA) aim to improve competition in the market and enable people to make more informed decisions.

“The new regulations will see a deferred opt-in or pause in the sale. A salesperson can start the sales process but can’t conclude the sale for a set time period, giving you time to consider whether you need the product and also the chance to shop around for deals which could deliver a massive saving,” added Mr. Clarkson.

“Add-on GAP insurance claims ratios from 2008 to 2012 averaged just 10 per cent, meaning only £10 in every £100 paid in premiums was actually paid out in claims. GAP add-on sales also account for an estimated annual overpayment of £76 million for every £108 million paid in premiums! This is why I welcome the FCA proposals – and I’d urge anybody arranging car finance to speak to a locally based broker, as you could make an incredible saving.”

The FCA has said that people are buying products that offer poor value for money and that distributors enjoy a very strong position – with little competition at the point of sale meaning that there is no pressure on sellers to reduce price. Under the new regulations, set to come into force in April, there will be a requirement for add-on GAP distributors to inform consumers that they can purchase the product elsewhere.

Avoid the pitfalls of being under insured

Find Out More

Head Office:

First Floor,
North Barn,
Broughton Hall Business Park,
Skipton,
North Yorkshire,
BD23 3AE

Tel: 01756 802100
Email: info@westcraveninsurance.com

  • About Us
  • Latest Insurance News
  • Job Vacancies
  • TOBA
  • Privacy Policy
  • Cookie Policy
  • Complaints Policy
  • HTML Sitemap
  • XML Sitemap
  • Contact Us
  • Private Ambulance Insurance
  • Paramedic Insurance
  • Medical Malpractice
  • BASICS Scheme
  • Emergency Response Vehicles
  • Multi Vehicle Fleet
  • Medical Equipment
  • Employers Liability
  • Public Liability
  • Buildings & Contents
  • Farm & Agricultural
  • Office
  • Cyber
  • Combined Liability
  • Risk Assessment
  • High Net Worth
  • Commercial Property
  • Business Start Ups
  • Professional Indemnity
  • HGV

West Craven Insurance Services Ltd are Independent Intermediaries for a Number of Insurers acting under the ABI Code of Practice Authorised and regulated by the Financial Conduct Authority. Company Reg No: 4697748.

We use live chat software on our website, this is provided by Click4Assistance, a 3rd party UK based Software Company.
Information regarding how the data is processed and stored can be viewed here.

Proudly made by Digital NRG Ltd

Menu