Does Cheap Gap Insurance really mean cheap and nasty?

Best Value Cheap Gap Insurance

If you buy cheap gap insurance from the internet does it really mean that it is not as good as the sometimes drastically differently priced levels of cover that your dealership will offer?

We are well aware the even the word cheap is not really a word that anyone would naturally associate with quality and definitely not a word or adjective that should be associated with any form of insurance let alone gap insurance.

Products and services that we buy do however have to offer value for money.

Cheap Gap Insurance is unlike any other service you buy in that the price you pay bearing no resemblance to the quality of cover that you have.

Instead as we prefer to call it cheap gap insurance should simply mean better value for money.

There are in fact factual reasons that mean that the cheap gap insurance prices you can buy on-line will always be less expensive than the quotations provided by your dealership some of which are completely beyond the remit of your local garage.

Did you know that there are two tiers of insurance premium tax which is for want of a better word VAT on insurance. If you buy gap insurance directly from the dealership you are buying your vehicle from as they have effect the final purchase price you are paying for your vehicle and ultimately the amount of VAT HMRC is paid they are legally bound to charge you insurance premium tax at 20%. This is a legal requirement and not something that they can avoid of change.

In comparison if you buy cheap gap insurance on-line your provider is allowed to instead charge you just 6 %.

Gap insurance does however share one common similarity with other forms of business in that volume counts. For example instead of buying perhaps one or two vehicles if you where instead buying 100,000 you would naturally expect to be able to use your negotiating skills and haggle a much better price per vehicle. Same manufacture, same vehicle just better price.

If we know apply this to the world of gap insurance this means same underwriter, just better price. This difference can also be massive. For example did you know that some online cheap gap insurance providers can provided the average dealership entire yearly quota for gap insurance in just a matter of days.

If we look closer we can not see that a massive 14 % IPT differe3nce and better supplier rates means that the types of policies cheap gap insurance policies you can buy on-line will naturally be significantly cheaper.

You will also notice that not once while we have been exploring cheap gap insurance have the policies terms, conditions and quality been effected.

So does cheap gap insurance mean poor quality or a dilution or watering down of policy features?

No absolutely not, cheap gap insurance should simply mean better value for money and is simply more a refection of who your supplier is.

 

 

 

 

 

 

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