We have seen an exponential increase in customers purchasing our top level of Gap Insurance called Vehicle Replacement Gap Insurance.
Hertfordshire (PRWEB UK) 28 February 2013
According to the SMMT (Society Motor Manufacturers and Traders), new car registrations in January 2013 increased by 11.5% and this was the 11th successive monthly rise, suggesting 2013 could see approximately 2.057 million new cars registered in the UK.
Tom Barley, a spokesman for Gap Insurance provider http://www.car2cover.co.uk said “What is clear from our discussions with car buyers throughout the UK is that the increased demand for new cars is not driven by product desire necessarily, but more by heavy discounting, subsidised low rate finance and deposit contributions. Customers who had no intention of replacing their car are being successfully tempted by some extraordinary offers.”
With motor manufacturers ‘buying business’ in this way and pre-registering cars to ‘boost’ their perceived sales results, it is a buyers market that is expected to continue for the remainder of 2013. This raises an interesting question. In the event of a write off in 3 years time – today’s levels of discounting and finance rates may not be available and customers could face a significant financial shortfall when it comes to replacing their vehicle.
“We have seen an exponential increase in customers purchasing our top level of Gap Insurance called Vehicle Replacement Gap Insurance for that very reason” said Barley. “In a write off, this low cost protection will pay the difference between the motor insurers market value write off settlement and whatever the customer needs to pay to replace the vehicle – even if the price is more than he or she originally paid.”
Insuring depreciation and replacement car price increases for up to 5 years sounds too good to be true, but car2cover confirmed “manufacturers of new cars increase their prices every year by approximately 2%. They also improve their specifications from time to time in model ‘facelifts’ which normally attracts an additional increase – and all manufactures have a model development plan and will replace the car entirely with a new model from time to time. Manufacturers also vary the dealer financial support behind their marketing campaigns which can dictate how much discount is available to the consumer. All these potential variables may substantially increase the price of a replacement – at time when the customer least expects it”.
The UK car buyer is faced with a great deal of choice across the brands and some astonishing deals to boot. As such it makes a great deal of sense to consider the worst case scenario which over half a million drivers every year experience and protect with some form of Gap Insurance. The http://www.car2cover.co.uk web site provided a quotation for their Vehicle Replacement Gap Insurance at £250 for a 5 year policy with £15,000 of cover for an example vehicle purchased for between £15,000 - £25,000. A quick calculations suggests that under 97p per week for what is an undoubtedly good protection.
To provide customers with a wider access to information about these risks and how gap insurance might help, car2cover have launched a new web site http://www.car2covertv.co.uk where over 45 short, 3 - 4 minute video clips, together with video transcripts are freely available to view. Car2cover also offer free telephone help on 01438 728959.