Direct Gap is continually working to bring new and innovative products to our clients. In conjunction with our underwriters we offer Deferred Gap Insurance for our Return to Invoice Plus and Vehicle Replacement Plus policies.
What is Deferred GAP Insurance?
There are a number of motor vehicle insurance companies who offer a “new for old” vehicle replacement during the first twelve months.
This means that on the face of it, you do not need GAP cover during this first twelve months period. If you consider that to be the case and you want to rely on their offer, the deferred policies can start after the insurer’s first year cover expires.
What is a Deferred GAP policy?
Direct Gap offer two deferrable GAP insurance policies, one is the Return to Invoice Plus and the other is Vehicle Replacement Plus. These policies are in fact our standard policies with the additional option of delaying or deferring the start date. This means that you still retain all the outstanding benefits of the standard policy but select the start date to suit your circumstances.
We do not offer finance gap insurance on a deferrable basis as you are still liable for any finance charges even in the first year.
How does Deferred GAP Insurance Work?
The two GAP policies in question need to be purchased within the first 180 days of vehicle ownership. A deferred policy must be purchased during this period but the policy commencement date can be delayed for up to a maximum of one year to coincide with the first anniversary of the cars first registration from new.
For example let’s say that your insurer provides the new for old for the first year and you purchase our policy for a further two years, you would have GAP cover for three years and only pay for two!
Benefits of a Deferred GAP policy.
Where the “new for old” option is offered by the vehicle insurer you are able to make a saving on the premium of a GAP insurance policy which is reduced by the deferred period.
Whilst the offer from your insurer may appear to be beneficial you must ensure that it is applicable to your circumstances. There are certain situations where they may not provide new for old cover.
Detriments of a Deferred policy. ?
Whilst the “new for old” from your insurer may appear to be an attractive benefit, generally it only applies to vehicles which are BRAND NEW at the time of purchase and where the owner is the FIRST registered keeper. We also have seen cases where the insurer will not pay out new for old if the customer has exceeded agreed mileage limits or if the vehicle was not in a condition at the point of total loss that is acceptable to the insurer.
If you choose not to defer the start date of the policy and your insurer does replace the vehicle on a new for old basis you have the option of claiming back any applicable excess from the gap insurance policy (to a maximum of £250) or transferring the remainder of any policy FREE of charge to the new vehicle.
Please also note that contract hire and lease vehicles are generally excluded from any new for old offering with most insurers as the owner of the vehicle is the hire or leasing company.
It is entirely your responsibility to ensure that you have satisfactory cover from your insurer. There will be NO protection offered by our policy whatsoever during the deferred period.
Often people delay buying a GAP policy thinking that they have cover for twelve months and want to buy after the insurers “free” period expires. Unfortunately the result is that by waiting twelve months you exceed the buying term of 180 days resulting in not being able to buy the GAP policy at all.
What if I change Insurer and Have a Deferred Policy?
We make a commitment to all our customers that should you change insurance companies in the deferred period and the new insurance company does not provide new for old cover, we will bring forward the start date of the gap insurance policy at your request. This service is free of charge.