It seems a simple question, and indeed the answer can also be as simple, if you were looking at the world of Gap Insurance today, what would be the biggest issue facing it?
Well the answer is the same today as it was ten years ago, although the causes may have changed somewhat. The simple answer is that generally people do not understand Gap Insurance properly. Of course it is fair to say that shortfall Insurance struggles to gain any recognition in the general public. Gap protection is normally first introduced by a motor dealer selling a motor vehicle, and this may not be ideal.
Gap Insurance number 1 problem
The issue with car sales people is that the level of products they have available can be quite limited. Indeed it is the case on many occasions that the only cover available to motor dealers is a simple 3 year Return to Invoice style policy. This means they often are not aware of Contract Hire Gap Insurance, or Vehicle Replacement Insurance and that policies can be take for 5 years, deferred, transferred etc. This can inevitably mean that you may not get the best introduction into the subject from a motor dealer.
What has changed with Gap Insurance?
Two things have changed quite dramatically over the last few years. The market to buy gap insurance independently has grown very quickly. Many specialist insurance brokers now exist with the sole purpose of selling Gap Insurance products. This has lead to an increased range of products and features too.
The second change comes with increased access to information on Gap Insurance on the Internet. Simply put ‘what is Gap Insurance?‘ into a search engine and see what happens! There are many websites either completely dedicated to the subject, or with dedicated sections for specific Gap Insurance information.
Perhaps the biggest issue with Gap Insurance is slowly starting to change?