GAP insurance

DrEskimo

MrFrugalFever said:

Dealers should not be ‘matching’ quotes/prices as that is technically incentivising which is against FCA regulations.

The reason a dealer is more expensive is because of the following;
- The sales person needs to make a living and gets paid a token gesture from the sale (remuneration for adequately explaining the product)
- The dealer is a business and will take a cut
- The administrator is a business and will take a cut
- The underwriters will want the lions share….
- If the need should ever arise, there should be sufficient support from both the dealer and administrator to ensure all goes smoothly in the event of an acceptable total loss

If you purchase via third party, it’s often a case of less fingers in pies so smaller costs. 

More often than not, the dealer isn’t that far away and it’s peace of mind that everything is ‘under one roof’.

I’m not sure what peace of mind it offers? I had a third party insurance product from a main dealer and I was simply told to contact them directly. No different to if I had bought it direct.

Its also worth pointing out that not only do they cost substantially more, they are typically an inferior product too. The GAP I was offered had a shorter term with a lower claim limit. 

Dave_5150

https://www.moneysavingexpert.com/insurance/gap-insurance/

Noggin500

It's a complete fallacy to say that it's "all under one roof" if you're buying GAP from a dealer. ALL motor dealers use third-party administrators, who are independent of the dealership/franchise. Once you've paid the dealer their (substantial) commission, all future communication is through the administrator - the dealer has no more involvement with it. Policyholders *should* be provided with the necessary contact details, but this is not always the case and customers are left to fend for themselves in the event of a claim or a query about their policy, particularly if the dealers aren't sure who's actually providing the cover, which is more common than you might think.

A substantial number of dealer policies are underwritten by unrated, offshore insurers too - so buying from a dealer doesn't automatically equate to the highest quality cover. Independent specialists who use A-rated, UK-based underwriters are available online, often at a fraction of the price of dealer policies.

Topkwak

Gap Insurance is much cheaper from Gap Insurance companies, not dealerships (a massive shock I know, not like a dealership to rip you off haha).

I have used Direct Gap for my last three cars and saved a fortune. It's much cheaper than normal car insurance and lasts for 3 years and I think longer if you need it. Saying that I've not had to claim yet but at least I know who to call if I do