Got GAP Insurance covering your BMW? If not, you might be running out of time!

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Got GAP Insurance covering your BMW? If not, you might be running out of time!

Post by GapInsurance.co.uk » Wed Jan 09, 2019 2:08 pm

If you haven't yet bought GAP insurance for a car that you purchased up to a year ago, you're running out of time.

From January 22nd onwards, we'll only be able to sell GAP insurance to cover a car that you bought up to 3 months in the past.

If you've been delaying buying GAP insurance with the intention of buying it towards the end of the first year of ownership (e.g. your motor insurer might cover you on a new-for-old basis during the first year of owning a brand new vehicle), now is the time to act before you potentially lose the ability to buy GAP insurance cover at all. In some cases (if you do have new-for-old cover with your motor insurance) we may even be able to permit you to defer the start date of the policy by up to 12 months from when the vehicle was first registered - thereby allowing you to avoid *possible* duplicate cover in the first year but, still benefit from cover in year 2 onwards.

January 22nd is a strict deadline which will not change. If you're contemplating GAP insurance, get a quote online today at www.gapinsurance.co.uk or contact us to discuss your requirements on either 01484 490095 or support@gapinsurance.co.uk.

Remember too that forum members get 10% discount using code: "BBMW10"
Invoice, Replacement & Contract Hire GAP Insurance quotes at up to 85% less than your Motor Dealer
T: 01484 490095 E: support@gapinsurance.co.uk W: gapinsurance.co.uk F: facebook.com/gapinsurance

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Re: Got GAP Insurance covering your BMW? If not, you might be running out of time!

Post by Octavius » Wed Jan 09, 2019 7:48 pm

Who brought this change to the table :?:
DEFECTED TO SKODA.

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Re: Got GAP Insurance covering your BMW? If not, you might be running out of time!

Post by GapInsurance.co.uk » Wed Jan 09, 2019 10:34 pm

Octavius wrote:
Wed Jan 09, 2019 7:48 pm
Who brought this change to the table :?:
One of the two underwriters we deal with. I'll explain... grab a coffee :D

The underwriter which permits policies to be bought up to a year after taking delivery of the vehicle and/or for the start date of a policy to be deferred by up to a year from when the vehicle was first registered (UK General Insurance on behalf of Great Lakes Insurance SE) is pulling out of GAP insurance entirely in the UK (though they'll continue to honour existing policies until their natural expiry). We're told that this is affecting every single one of their brokers nationwide (of which we are one) and that the last permitted date of policy sales (January 21st) is pretty much the same for everyone - though how true that is remains to be seen.

Our other policy underwriter (DTW 1991 Underwriting Ltd on behalf of Syndicate 1991 at Lloyds) does not permit GAP insurance to be purchased more than 3 months after taking delivery of the vehicle and will not permit the start date of a GAP insurance policy to be deferred even if you have new-for-old cover in the first 12 months. However, whilst at first glance this may not appear entirely in the customer's favour, their justification for not doing so is actually intended to be in the customer's favour - albeit as well as theirs.

To explain further...

We've been offering deferred start GAP insurance policies and/or the ability to buy GAP insurance up to a year after taking delivery of the vehicle for quite some time now and in more recent times, there's definitely a growing trend of motor insurers dodging their obligation to replace the covered vehicle for some very questionable reasons.

I've personally been involved in cases where the motor insurer has either blatantly contravened their own policy wordings or applied conditions at the time of claim that weren't even vaguely present in their policy wordings:

... one motor insurer didn't offer a replacement vehicle because the policyholder was hit by an uninsured driver and they insisted she'd have to pursue a Market Value claim against the MIB instead. It was only after I got wind of this and pointed out the specific sections of their own terms and conditions that said otherwise, that the motor insurer relented and agreed to replace the vehicle new-for-old. Had the claim gone ahead against the MIB there would potentially have been an entirely unnecessary GAP insurance claim to be paid, albeit in this case, it was the policyholder's father who'd contacted me for a GAP insurance quote on the vehicle they were considering purchasing as a replacement using the Market Value payout they were expecting. That soon became a quote for a GAP insurance policy on their brand new replacement vehicle which was provided by their motor insurer!

... another motor insurer, refused to honour a new-for-old replacement vehicle because the vehicle was financed rather than having been purchased cash outright. A condition that wasn't remotely present in their policy wordings (in fact it was quite the opposite) yet one that was enforced even though the finance company put in writing for us and the policyholder that they were happy to accept a physical replacement vehicle. It was enforced regardless because the customer contacted us after having already the accepted the offer of settlement based on Market Value from her motor insurer and as a result, they (the motor insurer) absolutely refused to re-open the claim. The GAP insurance claim was honoured regardless.

... another more recent case, saw a customer with the start date of his GAP insurance deferred such that it hadn't started by the time his car was written off at 10 months old and despite having new-for-old cover under his motor insurance policy, his motor insurer refused to pay out more than the Market Value of the vehicle at the time of claim because the finance company had rejected their offer of a new-for-old replacement vehicle as they preferred a cash settlement instead.

For the record we allowed him to cancel his GAP insurance policy and on the basis of a pro-rata refund for a policy which had not yet started he was able to get a 100% rebate of premium and he chose to use it against the cost of a new policy on his new vehicle, albeit this time starting from day one of ownership. Still.. considerably more out of pocket than he should have been with him having funded the shortfall to replace the vehicle with a brand new one out of his own pocket but, this ability to revert back to a Market Value payout in the event of finance company rejection was dealt with as though there was no replacement vehicle available (the rejection by the finance company being sufficient to qualify as such) and under these circumstances the terms of his motor insurance policy permitted the market value payout to be enforced.

In terms of the last case above... I've often wondered why finance companies reject the offer a new-for-old replacement vehicle from a motor insurer. If you consider a vehicle which is the subject of a PCP agreement and if say, it was written off at 10-months old. If the finance company accepted the new-for-old replacement vehicle from the motor insurer and the customer went on to hand the vehicle back at the end of the PCP term, the vehicle they'd be getting back would be 10-months newer (and therefore more valuable) than the vehicle they were originally going to potentially get back.

Although saying that... as I've just typed that out it's occurred to me that a vehicle that was 10-months newer and more valuable than the original vehicle probably wouldn't be handed back to the finance company and would likely instead be sold on with a larger equity for the customer to benefit from after having settled the final PCP payment. I suppose I can see some logic in how a finance company might object to that! :roll:

Ultimately though, the above is just the tip of the iceberg and motor insurers shirking their contractual responsibilities to their policyholders along with finance companies increasingly rejecting the offer of a new-for-old replacement vehicle, leaves GAP insurance insurers either paying out on claims that they shouldn't rightly be needing to pay and/or fending off customer complaints over circumstances that the GAP insurer has had no influence over. Our new underwriter simply has no intention of entertaining eligibility criteria that can assist in inflating the value of unnecessary claims and/or the quantity of entirely avoidable dissatisfaction of policyholders and their subsequent complaints.

As it happens, they're also a little more rigid in their product offering and eligibility criteria. For example they'll not consider (at least at this stage) an Invoice or Replacement GAP insurance policy duration of over 4 years and there is a large list of vehicles that they will not cover at all which the outgoing underwriter will/did but then the outgoing underwriter has complained about claim performance (hence them getting out of the market) so a more target approach clearly makes sense to any underwriter prepared to stay in the market.

I'll be creating a new post shortly on here detailing which BMW models we'll no longer be able to cover from January 22nd onwards too! :roll:
Invoice, Replacement & Contract Hire GAP Insurance quotes at up to 85% less than your Motor Dealer
T: 01484 490095 E: support@gapinsurance.co.uk W: gapinsurance.co.uk F: facebook.com/gapinsurance

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