Study Shows Why Motorists Should Purchase Gap Insurance
Comments (0) The Growing Costs Connected with Motoring
Unless you have been living under a rock, you’ll know that UK motorists are currently suffering with unmatched financial demands with growing insurance fees and petrol prices hitting them hard. To add insult to injury, it transpires that a large number of British drivers are at risk of losing out on an estimated £86bn resulting from insufficient insurance cover.
Inadequate Insurance Cover
In a survey entitled ‘Mind The Gap’ which has been conducted by leading GAP (Guaranteed Asset Protection) insurer ALA has revealed that 77% of British drivers aren’t adequately covered in the event that their motor vehicle is written off or alternatively stolen as these people are not shielding themselves against a shortfall when it comes to insurance payouts.
What is GAP Insurance?
GAP insurance safeguards against a shortfall between market value of the motor vehicle and any outstanding finance, or the invoice amount or price of a comparable alternative, should your vehicle end up being stolen or written off. Motorists can save up to seventy five % on quotations supplied from dealers by purchasing through independent suppliers.
Motorist Study
In a study of 2,055 British adults, 10% said they have had a motor vehicle written off in the past year and also 6% confessed to having had a motor vehicle stolen. Despite this, 10% of drivers had paid for their latest car using a loan from the bank and 11% on hire purchase, which means that a lot of motorists may just be susceptible to costly repayments.
When it comes to getting GAP insurance policies, it appears Britons are neglecting to seek out better bargains. Only 2 % of British motorists admitted shopping around for their GAP insurance, therefore losing out on cost-saving coverage.
Shop Around For GAP Insurance Deals
Simon England, managing director at ALA, said: “We are seeing more and more motorists coming to us to protect themselves against the ‘GAP’ in car insurance. However, our research has shown that, not only are many motorists still at risk, over half are not even aware of what GAP insurance policies are.
“We found that British 25 to 34 year-olds were the group most in danger, since 16 % of them chose to buy their present motor vehicle with a personal unsecured loan and 14 % on finance, leaving them open to expensive repayments.
“What’s more, this indicates the majority (74 %) of people that have purchased GAP insurance coverage at the same time as their car through the car dealership instead of looking around.”
ALA’s GAP insurance products start from only £74 for a 3 year policy, drivers can save close to 75% on quotes from a dealer. ALA also brings with it a wealth of experience in the GAP insurance industry.
