One of the UK’s most established Gap Insurance brands, Easy Gap, have confirmed changes for their 2014 Gap Insurance range. The brand, one of a trio operated by Gap Insurance specialists Aequitas Automotive Ltd, has a history of innovative and flexible underwriting, and nothing has changed on that front.
However the brands says it has moved to clarify policy features rather than make wholesale changes.
Examples of the changes include extended claims notification periods, moved from 30 days to 120 days. The products now also cover non recoverable road tax charges, as well as basing the claims on the motor insurers settlement rather than the traditional Glass’ Guide Retail Value for the vehicle. The brand has retained the reassuring commitment to settle your Gap Insurance claim within 14 days of your motor insurers settlement.
However the biggest innovation comes with added flexibility for the option of policy transfer. At a time when most motor dealer products do not even offer you the opportunity to transfer the balance of a Gap Insurance product onto a vehicle you may change the original to, most online providers will offer one of two solutions:
- Transfer the balance of the original policy terms onto your replacement vehicle (insurance underwritten)
- Effectively ‘cash in’ the value of the existing policy and use that as a discount on the price of another policy (broker undertaking)
Both types have there merits. The first option is a true transfer of the original policy terms, and it is underwritten by the insurer. This means if the broker cannot provide you with another policy you can still change over the balance of your original with the insurer.
The second option allows you to buy a policy for a longer period, by using your ‘cash in’ value of the old cover. However there are some risks with this, you may not find the broker has a suitable policy for you at the time you need a new one, and the broker may not even sell Gap Insurance anymore. Without the underwritten transfer terms from the insurer, relying on the second option as a transfer is not without risk.
However, both methods do have their merits, so Easy Gap have decided to give their policy holders the choice of both. If you wish to simply transfer the balance of the original policy over then that is fine, or you can ‘cash in’ the value of the remainder of the current cover and use this as a direct discount on the purchase of another Gap Insurance policy.
To provide such options for what is a common situation for Gap Insurance policy holders over an extended period certainly puts Easy Gap at the top of the tree for putting their customer first.
The Easy Gap Gap Insurance products remain underwritten by UK General on behalf of Ageas.