The UK Car Insurance Market - How Does It Work? Part 1
As is the case with other intangible, service-oriented products, the key to good car insurance is to get the best value for the money. Car insurance is a unique product that is required by law for all UK motorists. Third Party Fire and Theft (TPFT) is car insurance in its most basic form and is a fundamental legal requirement. Most people who pay for it typically hope they never have to use it.
TPFT is however, becoming harder to find since not many insurers provide this basic cover any longer. In addition, it’s almost a certainty that if you have four or more No Claims Discounts (NCD) then your car insurance quote for fully comprehensive car insurance is likely to be lower. Comprehensive motor insurance is also a basic requirement to qualify for a Gap Insurance policy. So, it’s important for consumers to know how to get the best peace of mind protection with their insurance buy, at the very best premium price available to them.
The first step in the process of buying car insurance is to explore all the options. Are you buying a new car, in which case you’re more than likely to want fully comprehensive car insurance, or is it a used car where third party fire and theft cover may be sufficient for your needs, especially if you really can’t afford a higher level of cover. Third party is the lowest level of cover you’re permitted to drive with and if you have an accident, your insurer will not replace your vehicle for you, but only cover the damage to the third party, assuming the claim is against you.
Buying a new car often means that you’ll be introduced to car gap insurance by the salesman / dealership, and this is another form of motor insurance. This is not a legal requirement, but rather a top up to your fully comprehensive car insurance policy. They’re all about vehicle depreciation. The instant you drive your car off the showroom floor, it has lost value. It will continue to fall in value until the day you sell it, crash it or it is stolen.
Fully comprehensive car insurance will only cover you for the market value of the vehicle, and the balance will be left for you to manage yourself. That’s where car gap insurance comes in. RTI gap insurance or return to invoice gap pays you the difference between the insurance settlement you receive and the value of the vehicle at the time you took out the gap policy. New car dealers sell these at a higher price than if you buy it direct.
On average you could save well over 50% or even more on dealer gap prices when you buy directly from the supplier. The advantage to shoppers today is that the Internet has expanded the amount of available resources and allowed consumers greater access to the best products and best prices, through online specialists. Click4Gap are a recommended top pick on Money Saving Expert for saving on Gap insurance.
Related Reading: The UK Car Insurance Market – How Does It Work? Part 2
As an extra to your car insurance, optional car GAP insurance can prove invaluable. Click4Gap insurance covers the shortfall between what is paid for a vehicle and the insurance pay out if your car is involved in an accident or damaged by fire or floods and written off. If you have a limited budget this financial loss can be significant and especially difficult for drivers to have to find.
Click4Gap offers two different types of Gap Insurance cover. These depend largely on how you intend to fund the purchase of your vehicle. So what car Gap Insurance is right for you?
Choosing The Right Gap Insurance For Your Car
Whichever method you choose to pay, there is a GAP insurance policy that is right for your vehicle, personal circumstances and financial position. GAP insurance is available for new and used cars.
If you paid cash for your vehicle, or paid a sizeable deposit, or if you financed it, Combined RTI Gap cover will pay out the shortfall between the cost of your vehicle and the market value at the point of claim, which is the amount your motor insurer will cover. This is cover that will protect you no matter if you use your vehicle for private use or for business.
If you leased your vehicle or it is under a contract hire agreement, Lease/Contract Hire Gap Insurance will cover you for the shortfall on your lease agreement, after your motor insurer settlement. If, for any reason, you change your vehicle within the first 90 days from the start date, we will also arrange to transfer your cover to your new vehicle without hassle or charge.
Can you pay Gap Insurance monthly?
If you’re looking for the convenience and affordability of a monthly payment option, Click4Gap offers you a non-financed agreement that enables you to pay a 20% deposit on purchase, followed by nine monthly instalments to cover the balance.
You won’t be signed up to a credit agreement, we’ll require no credit references or searches, and it isn’t subject to any changes in interest rates. For more on paying monthly for Gap Insurance click here.
Contact Click4Gap Today!
Looking to take out GAP insurance? We are here to help. Hop on our Live Chat, call us any time Monday to Friday, 9am to 5pm on 0208 819 3424, or Email us and we’ll get back to you during office hours.
Related Reading: Understanding GAP Insurance For Cars?