Wirral, UK (PRWEB UK) 25 August 2013
One of the UK's leading Gap Insurance providers, Aequitas Automotive, have issued a new consumer guide to assist consumers to understand the transfer option applied to Guaranteed Asset Protection products.
The ability to transfer the balance of a Gap Insurance product is generally provided on products in 2013. However, Aequitas Automotive have warned that the application of a transfer is not uniform between providers, and have highlighted the issues consumers should be aware of.
Company Director Mark Griffiths explained the reason for the report, and the factors highlighted by Aequitas Automotive for UK car buyers.
"With Gap Insurance products available for up to 5 years, it makes some sense that car owners may need the flexibility to transfer cover if they change the vehicle in that time."
"Many Gap Insurance products now allow for the transfer to another vehicle."
"However, there appear to be two distinct camps when it comes to how this is applied. In our conversations with prospective 63 plate new car buyers for September, we have found a general understanding that a 'transfer' means the option to move the balance of the current policy and terms to a new vehicle. Indeed this is a method used by many providers, including the Shortfall.co.uk, Easy Gap and GapInsurance123 brands from Aequitas Automotive."
"In contrast there are a number of providers who use a pro rata refund for the value of the balance on the original policy, and use this as a discount on the purchase of a new policy."
"In our view this is not a 'transfer' at all, as the original policy is not being moved to the new vehicle. This is the cancellation of an old policy and the purchase of a new one."
"Of course there is a clear argument that if the consumer is not losing out in monetary terms then does this really matter?"
"In the view of Aequitas Automotive there are clear issues that consumers should consider if they choose to rely on this method of 'transfer'. The first of which is to consider if the provider will still be providing Gap Insurance policies for you to buy? The second is that even if they still do offer cover, are the policy terms as good as the original policy you had?"
The Aequitas Automotive director explained why these factors should be considered seriously.
"If you look at the online providers in the Gap Insurance market in 2013, and compare them to the names seen in say 2010, then you can see that some brands no longer provide products, Also, and possibly more significant, is the fact that of the brands that remain nearly every single one has changes terms and underwriters in that time."
"An example of this would be our Easy Gap brand, and we would say actually the terms on the current products are much better than the old ones. However this is not always the case, indeed we have seen some prominent names in the market change terms recently that appear to be to the detriment of the consumer, compared to previous cover."
"Aequitas Automotive provide the new guides to aide consumers to understand the issue of transfer fully. Of course our company also confirms that all transfer options provided with Easy Gap, GapInsurance123 and Shortfall.co.uk products provide for the transfer of original cover."
Aequitas Automotive confirmed the new guides are available online.