GAP Protection works alongside your customer's motor insurance to close the gap between the current market value and one of Finance GAP, Index GAP and Return to invoice GAP.
Vehicles depreciate in value every day, and insurers often only pay out the market value of the vehicle at the time it is declared written-off. This means a potential shortfall between either the amount needed to purchase a new car, pay off a finance agreement or settle a contract hire agreement.
GAP (Guaranteed Asset Protection) is an insurance product designed to complement existing primary motor insurance cover by helping customers deal with the additional expense that may be involved when a car is stolen or written off. By paying an additional amount to help customers to either settle their finance agreement or purchase a replacement vehicle, it gives reassurance that they will not be seriously left out of pocket if they lose the use of their vehicle.
Finance GAP pays the difference between the outstanding balance of the financing and the vehicle’s market value prior to the total loss.
Index GAP pays a percentage of the vehicle’s market value prior to loss.
Return to invoice GAP pays the difference between the invoice price and the vehicle’s market value.
Improved customer satisfaction and retention
Added value when compared against most direct lenders
Provides opportunity to sell another car
Additional income potential, even with cash customers
Sales opportunity for both new and second-hand cars
Quick and painless replacement of the car that’s been lost
No need to haggle with their insurance company
Covers retailer or factory-fitted accessories
Payment approval is simple