If you have a Gap Insurance policy, does the location of the underwriting insurer matter? Well actually, to some people it might. Some people suggest that you are somehow less protected if the company underwriting your Gap Insurance policy is not based in the UK, however is this actually the case in practise?
Gap Insurance UK!
Insurance underwriters in the UK will be both authorised and regulated by the financial services authority. Many leading insurers like Ageas and AM Trust Europe provide Gap Insurance policies through motor dealers and specialist online brokers.
If you make a claim then the management of it will be undertaken by a UK based administrator. The policies come under the Financial Services Compensation Scheme also.
If the policies are underwritten by an insurer based offshore, what is the difference?
Well known insurers such as Red Sands, Enterprise Insurance Company PLC and Collingwood are all based in Gibraltar. They provide a range of products in the UK, inlcuding Gap Insurance. Instead of being authorised by the FSA, they will be authorised by another body, for example the Financial Services Commission in Gibraltar.
They will still be licenced in the UK by the Financial Services Authority, policies will still be administered by UK companies, and still covered by the FSCS.
The only disernable difference we can find is that if you had to mak
e a complaint then the stamp to Gibraltar may be more than on the letter in the UK!
In practise, if there was ever a problem with claiming from a particular insurer, then you would find it on the internet. Also, check how where the insurer provides cover, some very large and well known brands in the UK use these types of underwriters, they are hardly going to put their name to a policy if it only brings them bad press!
Gap Insurance UK vs Europe?
In our opinion it is an honourable draw! There is no practical evidence of issues beteen policies from different locations. Ultimatley, check the size of the insurer and the amount of polies they provide. The varied sources you can find there products is an indication as to the trust that retailers put in them.
In truth, if the Gap Insurance policy is a good price, and has good features, it does not matter where it has come from to protect you!