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The new FCA rules on the sale of 'add-on' Gap Insurance sales came into force on 1st September. There has been much conjecture as to the effect of these new rules, with some motor dealer experts suggesting no change to as much as an 11% drop in sales in the showrooms. The aim of the new FCA rules to to ensure that consumers get a better opportunity to explore their options for Gap Insurance, for example in being able to compare the motor dealer product with those from independent brands such as GapInsurance123.
So with such minimal changes in the levels of Gap Insurance being sold in motor dealers being suggested, have the new rules really been that effective?
You may want to consider this.
Aequitas Automotive Ltd, the company behind many or the leading independent brands in the market, can confirm the following for retail sales in September 2015:
- a total increase in sales of 182% from the figures achieved in September 2014
- a single record month sales total for Aequitas Automotive Ltd
- an increase of 168% in total website visitors compares to September 2014
As Aequitas Automotive Ltd is behind a number of the leading Gap Insurance brands in the market today (GapInsurance123, Easy Gap, Shortfall.co.uk and Totallossgap.co.uk) then we would expect that these trends are indicative of the industry as a whole.
We have seen a huge increase in website visitor numbers, when compared to the same period last year. This may indicate that the new FCA rules are indeed encouraging consumers to 'shop around' and research their options thoroughly. However the even higher number of retail product purchases also indicates that more people are convinced that the best Gap Insurance solution, and the best value, can be found away from the motor dealerships.
Some motor dealers may be trying to put a brave face on it, but the new FCA rules seem to be having the desired effect on consumer behaviour.