Read The Small Print On Your Gap Insurance Policy Warns Insurance Provider

Sept. 30, 2011 - PRLog -- Online GAP insurance provider, ALA, have warned motorists that they should read the small print on their policies very carefully before committing themselves to inferior products which could leave them caught short in the event of a write off or theft.

GAP insurance has become an increasingly popular product as more and more people are starting to realise that they are not adequately covered by standard car insurance if the worst happens since most policies will only cover you for the current market value of the vehicle rather than what you paid for it. GAP insurance, available online from less than £100, covers you for the depreciation in the vehicle’s value and gives motorists that all important extra piece of mind.

But consumers should be careful. Managing Director of ALA, Simon England, explains:

“Car owners are starting to realise the cost savings they can make by buying GAP insurance online rather than from the car dealer. However, while there some very cheap policies available online it is crucial that you read the small print before purchasing to ensure that you are getting decent cover. ALA are continually looking at the products we offer are not only the most competitively priced but also contain clauses which our competitors simply do not offer.”

ALA strongly advise that motorists check for the following 5 indications that they are purchasing a superior GAP insurance product:

1-  Free transfer of any unused premium and FREE policy amendments

2- Market Value Clause – make sure there isn’t one. This clause means that the GAP company will only pay from the Glass’s Guide Retail value. If your Comprehensive Insurer settles for less, you could well end up with a shortfall.

3- Maximum Value Clause – You don’t want one of these either. This means that the value of your car is typically capped at 105% of Glass’s Guide Retail value. If you have added some extras, which is very common, these extras may not be covered under your GAP policy.

4- Claim Period – If you have ever suffered a Total Loss Claim, you will know the level of stress it can cause, you may even forget to contact the GAP Insurer straight away. The better policies will give you 120 days to make a claim, lesser policies limit this to 30 days.

5- UK registered insurers – it is a fact, especially in the current economic climate that insurance companies, like any other, can fail. Buying from a UK insurer that is directly authorised and regulated by the FSA, which in turn offers you policy protection under the Financial Services Compensation Scheme, will give you the security you need. Other GAP providers use off-shore insurers, who, although licensed to sell GAP Insurance in the UK, ultimately can step away from their obligations without redress.
ALA gap insurance policies include all of the above.

For more information please call 01653 604304 or visit http://www.ala.co.uk/