GAP Insurance – the great dealer rip-off

9 February 2018

At ALA, the team speaks to a large number of people. They tell us that the dealer quote for GAP insurance is consistently at least 50% more than our quote. Unsurprisingly, they want to know why.

ALA has been trading since 1991, and specialises in GAP insurance, so we know the market and our products well. We provide first rate cover but for a fraction of the dealer price, and our policies come highly recommended. There is no justification for the excessive dealer prices. The only explanation is that they form a large part of the commission earned by the car salesperson. More worrying are reports from customers of situations where they feel pressured by the dealers to take their GAP insurance. Dealer-sold GAP insurance could, as a result, gain a similar reputation to Payment Protection Insurance (PPI). The Financial Conduct Authority (FCA) recently found that GAP insurance sold by motor dealers and finance companies was not the best option for consumers. This related to both price and the questionable methods they use to sell GAP insurance.

Why buy your GAP cover from ALA?

You can buy cheaper GAP insurance from an independent provider without compromising on cover. ALA is a market leading GAP insurance specialist. We are one of the biggest online suppliers and we are proud to offer outstanding customer service and excellent value policies. These are just some of the reasons a GAP policy from ALA is better for you...

1. We have strong partnerships and value independent recommendations.

Auto Trader, Honest John, PistonHeads and What Car? all recommend ALA to their customers for GAP insurance. We’re excited to say that Honest John have awarded us their “Highly Approved Trader” award four years in a row. HAT Awards recognise our “Reliable, high quality service and excellent value for money”. We’re also partnered with Martin Lewis’ MoneySavingExpert.com, and are featured on the Which? site. Defaqto, an independent financial information company, have awarded us a 5 Star Rating. We are the only online GAP provider able to display the Defaqto logo.

In January 2017 we joined Trust Pilot and, at the time of writing, we have over 4,000 customer reviews. These are overwhelmingly positive and give us an average rating of 9.7 out of 10. This places us 5th out of 275 insurance companies. We are proud to be able to support these partnerships. They give an unbiased assessment of our products and services and this, we hope, gives you the confidence to buy from us.

2. We are committed to helping our customers make an informed choice.

GAP insurance can seem like a minefield. ALA offer a strong, trustworthy alternative to the dealer policies. Our aim is to help consumers understand the benefits of good value GAP insurance. Our website has all the information you need to be fully informed about our company and products. We also invest in our staff and value their skills. We do not pay our team sales commission, instead they are paid a salary. So, if you're unsure about any of our policies, our specialist advisers will give you as much help and support as you need. They'll give you information on the right products for you, not the ones that earn them the most money.

3. Our policies actually pay out (despite what the dealer's might tell you!)

Dealer's frequently dismiss independent GAP insurance providers. They use scare tactics to discourage you from shopping around, and we've heard them all! Discrediting other companies is a standard ploy used by the dealers as a desperate attempt to justify their high prices. Dealers also cite a variation of "online companies don't pay". We're happy to confirm that we do! Sadly, some of our customers do need to claim on their GAP insurance and in 2017 alone we paid over £2million in settlements.

Total value of claims paid out by ALA Insurance in 2017 alone was £2,202,041.41

See how GAP Insurance can differ per manufacturer For excellent value GAP insurance cover, try ALA today! QUOTE ME