Jul 052016
 

Many motorists are taking up the opportunity to get GAP insurance upon the purchase of a new vehicle; even if it’s a used car. GAP Insurance is a product just as popular and sometimes more desired than a car warranty.  So why should car owners consider this insurance cover?

Nearly half a million cars are written off each year through accidents and around 150,000 cars are stolen*.  For those unfortunate enough to experience this situation, they may find themselves in a tricky situation, finding cash, to replace their lost motor. Motor insurers will commonly not pay out the full original value of the motor and instead only pay out a settlement equal to the value of the car at the time of the accident.

So if a brand new car costing £20,000 depreciates in three years to £10,000 and is then written off due to accident or theft, the motor insurer will only pay out the £10,000. The trouble now is finding the additional £10,000 to purchase a for-like motor and this is where GAP insurance plays its key role.

GAP insurance adds that extra protection to the depreciation of a motorist’s vehicle. As the name indicates, it will cover that missing gap of money to meet the actual value of the car at the time of purchase. So with GAP insurance taken out against the vehicle, that additional £10,000 doesn’t become so hard to find.  That is GAP insurance in its simplest form**.

The appealing factor of GAP insurance is that it available for brand new or used cars brought through dealers and used cars purchased privately in a variety of options.

Return to Value: This GAP insurance option pay the difference between what the motor insurer pays and the value of the car when GAP insurance is taken out.

Return to Invoice:  This GAP insurance option covers the different between what the motor insurer pays and the original invoice price paid for the car.

Vehicle Replacement: Designed for new cars, this option pays the difference between what the road insurer pays and the cost of a brand new car of the same make, model and specification. Even if manufacturer’s prices have increased since your original car was purchased.

Ultimately, having a car written off can be a distressing experience for anyone without having to think about how to replace it. GAP insurance can help bring that extra element of security so if the worse possible scenario with your car happens – getting back on the road will be easier.

Warranty Direct’s GAP Cover Insurance options have been designed to be flexible to motorists’ requirements whether you have a brand new or used car brought from a dealer or privately. With wide claims limit range and a dedicated team, Warranty Direct’s GAP Cover Insurance is designed to protect motorists from the pitfalls of a “total loss.” Call today on 0800 097 8838 or visit gapcoverinsurance.co.uk .

* – Based on stats provided by Honest John and LV=Car Insurance Report 2014

**- Terms and conditions apply.

Warranty Direct is an Insurance Intermediary authorised and regulated by the Financial Conduct Authority. Our FCA Register Number is 309075. Warranty Direct Limited is a company, registered in England and Wales No. 3233010 at Pinnacle House, A1 Barnet Way, Borehamwood, Herts, WD6 2XX. Policies are subject to English Law. 

Jun 022016
 

Black Box TechnologyNearly seven in 10 drivers don’t trust ‘black box’ technology to lower their insurance premiums by proving they are a better driver, according to research by Whatcar.com.

Telematics-based insurance policies monitor driving standards by accessing the data produced by a car either by fitting an electronic device inside the car or via a smartphone app. The policies are increasingly being aimed at young, new drivers, with insurance firms rewarding good driving with policy discounts.

However, while improving road safety is the main aim of the new policies, Whatcar.com’s study found the only reason the vast majority of drivers (89%) would use telematics insurance is to save cash, while fewer than two in five (39%) would choose to use it at all.

As well as fearing the ‘Big Brother’ element of having their driving constantly monitored, 67% of motorists said they wouldn’t trust a telematics device to prove they were a good driver.

Paul O’Dowd, head of sales for telematics provider In-Car Cleverness, said mistrust in telematics-based insurance policies may be justified because insurance companies predominantly use hard-wired telematics systems that rely solely on GPS-based data, as opposed to on-board diagnostics (OBD) systems which take data directly from the car.

The scoring systems used also don’t take into account advanced driving methods, as well as other pertinent factors like weather and road conditions, meaning the results can be inaccurate.

He said: “The GPS-based systems that many insurance companies currently use are flawed. The scoring mechanisms do not take into account scenarios that keep a driver safe in the event of a near miss, or advanced driving methods. If all insurers used OBD telematics devices, which capture data readings directly from the vehicle, false data would be significantly reduced.”

Whatcar.com’s editorial director, Jim Holder, said: “Black boxes do encourage safer driving up to a point, but it is also fair to say that it’s often the safest young drivers who choose to have telematics in their car – they would be safe drivers anyway.

“And, while it works to save money for some drivers, it’s important to remember that premiums can go up as well as down based on feedback from the telematics.”

Sep 072015
 

It’s the beginning of another week here at Warranty Direct and we thought we’d share a roundup of the popular news articles we’ve recently shared through our social media feeds:

Autocar – The Auction Bible

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Autocar recently looked into how the value of used cars is decided with the Glass’s price guide and forecasting tools, the oldest and best known of the UK’s guides.  The article by Steve Cropley features an interview with Rupert Pontin, the new head of valuations at Glass’s Guide.

Over-Declaring Penalty Points Lets Insurers Overcharge

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The Telegraph reported recently that customers needlessly telling insurance firms about expired penalty points on their driving licenses add £57 to premiums – yet insurers continue to ask about old convictions.

Appeal Your Parking Fines In Seconds – Auto Express

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An 18-year old has created a new website to help motorists appeal against unfair parking fines. The free service allows fined drivers to create customized appeal letters within a minute to sending to the relevant council involved.

You can follow our Facebook and Twitter feeds (including ones for Reliability Index and Potholes UK) to see more motoring related articles such as these offerings every day.

Have a good week!

 

Jun 292015
 

story3HPI CrushWatch from vehicle history check expert HPI, saved over £56 million worth of vehicles that were being driven without insurance, from being crushed at the instruction of the police in 2014. Shockingly, supercars and prestige vehicles are often being driven by insurance evaders. However, popular, high volume makes of car, such as Vauxhall and Ford top the culprit’s chart.

The highest value vehicle HPI CrushWatch identified in 2014, was a Lamborghini Aventador worth £309,000. Rolls Royce, Bentley and Lamborghini vehicles dominated the list of top 10 highest value cars recoveries. Owners of the Vauxhall Corsa and Vauxhall Astra are the most likely to drive uninsured, with nearly 1,000 of these models being reclaimed in 2014. The Ford Focus came in third, with the Fiesta in fourth, showing that popular, mid-range vehicles are frequently hitting the HPI CrushWatch register.

Working under the umbrella of the Finance & Leasing Association’s (FLA) Vehicle Recovery Scheme, HPI CrushWatch brings together motor lenders and Law Enforcement Agencies to enable lenders to reclaim uninsured cars which could have been sold on or scrapped by the police without their knowledge. Not only are the FLA and HPI taking steps towards closing the net on insurance and tax evaders, they are making UK roads safer for law abiding motorists.

Neil Hodson, Managing Director for HPI, comments, “Although, the majority of cars we recovered in 2014, are popular, lower priced vehicles, we also helped recover a significant number of high-end makes and models. Along with some astonishing supercars, we recovered a significant number of Audi, BMW, Land Rover and Mercedes-Benz vehicles. It’s clear that insurance evasion crosses social and financial boundaries.”

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Jul 292014
 

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Drivers actively shopping around for the best insurance are quids in as average car insurance premiums are now £406. This summer saw first monthly fall in premiums since February 2014, and British motorists should continue to benefit from declining car insurance premiums.

Analysis of 42.5 million car insurance quotes run on Britain’s number one comparison site between January 2011 and June 2014 reveals that the average cost of car insurance fell last month, to £406 – down from £411 in May. This reduction of £5 (or 1.2 per cent) is the first drop in monthly car insurance prices since February. When comparing the cost of cover now to the same time last year premiums are currently £13 cheaper or 3.1 per cent lower.

This means that those actively looking for car insurance at the moment, whether buying cover for the first time or shopping around to renew a policy, should be able to make a considerable saving compared to the price they paid for their last policy without compromising on quality of cover. For those renewing a policy this is especially important – auto renewing won’t secure the best deal, so actively scouring the market to find the most competitive deal is crucial. Finding the best deal on car insurance is quick and easy to do, and drivers can secure a saving of up to £255 using MoneySuperMarket.

Kevin Pratt, insurance expert at MoneySuperMarket, said: “With news today that the Transport Committee is to urge the Government to do more to reduce insurance company claims costs, a further lowering of car cover premiums should be on the way. Insurance claims fraud has inflated car insurance premium prices for all drivers and anything that helps tackle this scourge is good news for honest motorists.

In the last year there has been considerable car insurance premium price fluctuation, with sharp decreases in July last year followed by increases at the end of 2013. However, the biggest change was the steep fall in pricing that occurred between December 2013 and January 2014, where prices fell from £423 to £384 – a nine per cent, or £39, saving.

Kevin Pratt continued: “Despite some small price increases earlier this year, the overall trend of deflation persists as competition among insurers continues. Sticking with an existing insurer is unlikely to secure the best deal. Even though a renewal quote might be cheaper than the price paid last year, drivers should still be able to save even more by switching to a different insurer, so shopping around is key.”