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The current changes are aimed at providing our clients with the simplest and most comprehensive options available in the UK. One of the comments we always get from consumers comparing Gap products in the market is that the terms are hard to understand, and in many cases do not offer the cover the customer thinks they are getting. It is true that we find products in the market that claim to offer certain features, and then contain policy terms that provide punitive to potentially counter these features.
GapInsurance123 has always strived to be simple and straightforward.
So what has changed with GapInsurance123?
1 - Longer period to notify us of your claim. - Previously the GapInsurance123 products provided a policy term that stated that any claim must me notified within 30 days of any incident in that the vehicle became a total loss. We did this to encourage our clients to inform us as quickly as possible, this being essential to ensure that a settlement can be made within a short period to you. If you have finance outstanding on the vehicle you will be paying interest until the finance is settled, and your Gap Insurance will only cover until the date of the incident. Any interest you accrue after this date is not recoverable by your Gap cover, and therefore it is in your interest to get the Gap Insurance settled as quickly as possible.
However we do understand that if you were looking for a Gap Insurance policy it may give you more comfort to think you have a longer period if you needed it. Therefore we have extended this period to 120 days with immediate effect on new GapInsurance123 policies.
However we would strongly urge you that you contact us as early as you possibly can after the accident or theft of the vehicle to prevent additional charges that your Gap Insurance cannot cover.
2 - Free policy transfer with enhanced options. GapInsurance123 Return to Invoice, Vehicle Replacement and Agreed Value products have always provided the ability to transfer the balance of your cover to another vehicle. This is often required required if you change the vehicle within the term of the cover.
However you may not realise that all the Gap Insurance products in the market that claim the ability to transfer the policy when in effect all they provide is a discount on a brand new policy. This may well be fine, however to rely on this is to make one very large assumption, the insurer/provider is in a position that they can offer you a brand new policy at the time you want to 'transfer'. Also the policy terms may have changed, and these may make the purchase of a new policy unattractive.
It has always been the view of GapInsurance123 that a true policy transfer will allow for the current policy terms to be moved over to a new vehicle.
However, it is not to say that the option of 'trading in' the value for your old policy against the cost of a brand new policy may be of benefit also.
So transfer of current policy terms or trade in the value of your your old policy against the value of a new one, which way is best?
Well we just could not decide so GapInsurance123 came up with something quite unique.................we will give you the choice of both!
So if you wish to transfer the balance of your GapInsurance123 Return to Invoice, Vehicle Replacement or Agreed Value Gap policy then you can either choose to:
- transfer the balance of your existing policy terms to another qualifying vehicle.
- 'cash in' the value of your old policy use this against the cost of a brand new GapInsurance123 policy.
Another change sees the administration fee of £25 for a policy transfer now being dropped, and all policy transfers are now free of charge.
3 - Claims basis now from your Motor Insurers Settlement. Gap Insurance claims on GapInsurance123 have always followed the traditional route of covering you from the value of your vehicle, at the time of the claim, based on the Glass' Guide Retail Value (GGRV) for the vehicle at that point. This means that any settlement and claim is based on the 'market value' of the vehicle at the time of total loss.
This means that we would pay from the GGRV only, and if your motor insurer does not pay the full GGRV then there could be a 'gap' that could not be bridged. However in our view the chances of this happening very much depends on the claims process you Gap Insurance provider undertakes for you.
One of the strengths of the GapInsurance123 products has always been our claims process. This can involve our claims team negotiating with your motor insurers regarding the settlement they offer. By drawing a line in the sand at the Glass Guide Retail Value then it gives a clear figure that is independently set by Glass' Guide for our customers to understand. It also gives a clear figure that our claims team will negotiate with your motor insurer for. This process has served us well, and claims being settled quickly and efficiently is commonplace with GapInsurance123 (please see our 14 day claims settlement commitment)
However there are Gap Insurance providers who offer settlement on a different basis. They say that they will pay from your motor insurers settlement, not an independently set figure such as Glass' Guide Retail Value. On the face of it this can seem attractive, as you may be concerned (not understanding the claims process we use) that your motor insurer may be able to settle lower than the GGRV unchallenged. However, we have also found policies that provide a caveat to the motor insurers settlement basis; they will settle from the motor insurers settlement on the proviso that you gain 'full settlement' from your motor insurer.
The second option confuses us, and does raise more than a little concern. This is simply because who would say what the 'full settlement' is from your motor insurer? In theory you could get the full GGRV for the vehicle and this could still be deemed short of the 'full settlement' by the Gap Insurance underwriter with no hard and fast figure to work on. The second aspect of concern is that the onus to get this 'full settlement' seems to fall upon you. This may suggest that you are expected to negotiate between the two insurers. This sort of tennis match may only increase your blood pressure and aggravation levels!
This method may serve other providers well, but we would feel such terms could not provide a clear message that we strive to provide. Whilst we feel that in practical terms the 'line in the sand' method of claims settlement is clear, and has worked very well for GapInsurance123, we do understand that consumers could be concerned that their motor insurers may not pay the vehicle value in full.
So GapInsurance123 have clarified our policies on this point.
From now on any new GapInsurance123 policy will be settled on the motor insurers settlement, and not on the Glass' Guide Retail Value for the vehicle. All we ask is that you do not accept the motor insurers settlement offer before contacting the GapInsurance123 claims team. This will allow the team to talk to your motor insurer regarding the settlement if necessary. It also ensures that you are not left 'piggy in the middle' between the two insurers.
And to confirm our confidence in the claims process we provide, our commitment to make good on your Gap settlement as quickly as possible means that we have retained the '14 day settlement' pledge we have always provided on our products.
Other features have been added also, including cover for unrecoverable Road Funding Licensing costs and the removal of a tracker requirement for vehicles between £50,000 and £75,000 in value.
So with our top ranked Gap Insurance products getting a spring clean, where else would you ever consider buying other than GapInsurance123?