How will Gap Insurance be effected by the news that the UK has officially re-entered an economic recession? The gloomy news on the nations financial outlook has cast a shadow over many sectors, however, does it mean a chink of light in the niche world of Gap Insurance?
Gap Insurance in gloomy times
The UK Motor Industry has suffered more than most during the difficult economic landscape. Manufacturers have had to be innovative during this time, to attract a smaller number of car buyers into the showrooms. There have been some great success stories during this time, for example Nissan have had tremendous success with a modern model range and keen finance agreements. The Qashqai in particular is a firm favorite in 2012.
However, on the whole the motor industry has suffered some dark days during the last few years.
You may expect that the sales of Gap Insurance would follow ‘hand in glove’ with vehicle sales. A motor dealer offering car gap insurance would expect a 30% sales rate of Gap Insurance to new car customers. So less car sales means less gap insurance sales, right?
Well yes and no, whilst car dealers have seen a slump in the sales of this addition product, savvy customers are simply checking a number on online gap insurance brokers for the best deals around. A quick search of the internet can save you up to 80% off the dealer price, and offered you a wider range of products, which may be more applicable to your circumstances.
So in reality, we may be seeing a rise in sales of Gap Insurance, despite the economic times we are in.
Why people look to Gap Insurance?
Difficult economic times normally bring about a rise in crime, and with car crime that means theft. Today, car crime is far more organised, with gangs specifically targeting vehicles. This means that is you are a victim of such a crime, you could be left with a ‘market value’ payment from your insurers far less than expected.
This, coupled with the fact that customers can save themselves a small fortune by buying gap insurance online, means that overall gap insurance sales may well be on the increase.