As we continue to make Insurance clearer this week we’re answering the question – Is it cheaper to buy your GAP Insurance online?
Seems like a simple ‘yes’ as everything is cheaper online right? Right? Ah, but imagine you have just purchased a car through a dealership and when the paperwork is wafted under your nose, there’s options. Lots of options. One of those is for GAP Insurance. So i s it cheaper to buy your GAP Insurance online VS a dealership?
With September looming, there will be a flurry of new cars on the road as manufacturers release their new vehicles. This means that car enthusiasts, those who like to replace their cars for peace of mind because of the 3 year factory warranty and those who like to change as a status symbol, will all be enjoying the buzz of this buying process. However, with this buzz you get from the process, it can also be a stressful experience as a car is often the second-most expensive thing we ever buy after a house, so the financial side of the process plays a big part.
Here are some important things to consider when buying a new car?
- Work out what you need so you don’t get bullied into buying more than you need.
- Research the best brands and models so you fully understand what is available to you
- Stick to your budget – this is a hard one as you are on a high but don’t be fooled
- Don’t buy insurance add-ons with dealership
- Think of ongoing costs, like insurance, so get insurance quotes beforehand
- Check Your Credit – over 80% of us buy new cars on finance so it’s wise to check you are eligible
One very important point that we wish to highlight in this blog is point 4 above; customers tend to agree to buying all the add-ons through their dealership as they are sitting in front of a salesman and feel they either can’t so ‘no’ or it’s easier to do it rather than sort it out themselves.
GAP Insurance, which stands for Guaranteed Auto Protection, is one of those add-ons and will protect you when you buy a new car. It is designed to cover the difference between the amount your car insurer would pay out if your car was stolen, or written off, and the price you paid for your car. This cover is moderately priced to the dealership but typically, the charge passed on to the customers is substantially more, sometimes this ‘commission’ (the difference between what is charged to the dealership and what the dealership charge to you) can increase costs by 200% – 300%! So, it pays to shop around and use online providers as your cost for this cover can be reduced dramatically.
Also, if you buy your car on a finance arrangement whether it is a Personal Contract Plan (PCP), Personal Loan, Hire Purchase (HP) Contract/Lease Hire, your lender may require you to buy GAP Insurance for the length of the loan to protect their financial interest.
Here is the good news, you don’t have to buy your GAP insurance from the dealership. Best Price Financial Services offer GAP Insurance for as little as £55.99 so click on the image below to find out more.
Gap Insurance will protect you financial in the event of your vehicle being stolen and not recovered, or involved in an accident and declared a total right-off. GAP Insurance is very important as vehicles depreciate overtime with average figures suggesting a 2-year-old vehicle would be worth about 65% of its original price, a 3-year-old vehicle 45%-50% and for a 4-year-old its value could drop to 35%-45% (these figures may vary depending on the vehicle make and model). These gaps in value/price is where our cover kicks in.
We’re here to cover you for less with be best products, available with less commission – that’s the Best Price FS way.