Wirral, UK (PRWEB UK) 14 February 2013
One of the UK's leading Gap Insurance brands has revealed new details that show that record numbers of UK car buyers seek to defer the start date of their Gap Insurance cover. GapInsurance123.co.uk has revealed that they have seen a 100% increase in the number of products sold in this way in the last year.
Mark Griffiths, Director of the Aequitas Automotive, the company that owns GapInsurance123, explained why they feel that consumers have turned to this option.
"Getting a new vehicle is brings certain advantages over a second hand one. The attraction of a full manufacturers warranty, and the kudos of simply driving a new vehicle is extremely attractive. However, another advantage is that with many of the major motor insurers, they will offer to replace the vehicle in the first year, if it is deemed a total loss.
It could be argued that this can negate the need for Gap Insurance for this period, put of course vehicle ownership extends well beyond one year normally, so it is only natural that vehicle owners seek to protect themselves for longer periods.
The obvious answer is to defer your Gap Insurance to begin at the end of that first 12 month period. This could then give the consumer maximum value for money, something we have always striven for at Aequitas Automotive."
The option to defer Gap Insurance is not a new feature in the Gap Insurance market, yet many providers still do not offer consumers the option to defer and Mark Griffiths explained why this may be.
"At Aequitas Automotive we have always had the option to defer certain policies, although certain insurers simply will not do it. The option to defer the cover will increase the risk for the insurer for a further year, and this will inevitably have a knock on effect with costs.
We have found that specialist product providers have a more understanding approach to this, and we are pleased that our GapInsurance123 brand has been able to offer both Return to Invoice and Vehicle Replacement Insurance products with a deferred start date.
Over the last year our Call Centre Staff have been advising new vehicle buyers to check the terms of their motor insurance policy, and understand the terms required for a replacement vehicle thoroughly. If the customer is satisfied by this then they are offered the option to defer the start date of they wish. They also have the option to bring forward the start date, should they change motor insurer during the period and the new insurer not offer replacement cover.
Even though the delayed start date does increase the risk to the insurer, we provide sufficient business that this increased risk is simply absorbed. No GapInsurance123 customer is charged any extra for delaying the start date of cover."
GapInsurance123 also confirmed that the success of this option has seen it extended to the brands sister site Easy Gap. Aequitas Automotive also added that it will also serve as a feature on its third Shortfall Gap Insurance brand, due to launch later in 2013.