ALA Insurance is committed to making information easily understandable to its customers and this makes it possible for every customer to be taken through the process by our courteous UK based customer care. Therefore, ALA Insurance deserves to be among the worthy finalists of the Institute of Customer Service awards in the Customer Focus category of the year 2024. Regardless of the representative one gets on the line with, Charley, Liv, Callum, Charlotte or Leana, it is always a joy to deal with ALA Insurance customer service.
Therefore, understanding that people may have certain difficulties when it comes to an insurance purchase, ALA Insurance does not take advantage of the clients and offers them as much natural information as possible. Actually, it makes even the most complex of question very easy to answer. More information about ALA Insurance is that it is the friendly and no-claiming insurance company that is characterized by a low-pressure selling strategy.
ALA Insurance is an FCA regulated insurance company that offers policies made using the company’s knowledge of the insurance market. They work with the purest of motives to provide coverage that is pinpoint accurate for every client, and all this at a reasonable price. ALA Insurance is always nearby; a mail away or a phone call away and ready to assist in any issues concerning insurance.
Understanding GAP Insurance: Guaranteed Asset Protection
GAP Insurance or Guaranteed Asset Protection is a type of insurance that is meant to help you in the case of a total loss claim. This ranges from situations where your car is a total loss or was stolen. GAP Insurance is not limited to the brand new cars only but can be availed for the used cars as well.
Cars are assets, and driving per se is a risky business. Steadily, the car market is depreciating, and it is quite fast, to an extent that up to 77% of the value of a new car may be considered as a depreciation within a space of three years. Some of the used cars can depreciate to the tune of 20% within the first six months. Also, car stealing is a problem, there were 7% more stolen cars in 2018 and 30% more since 2015.
Based on these factors, GAP Insurance provides valuable financial cover. GAP Insurance will protect you in the event of your car being stolen or being a total loss by paying the difference between the market value of your car at the time of the incident and the balance that you still have to pay on your car.
Comprehensive Vehicle Protection with Insurance
Not all of us will be as unlucky as to have our car stolen or to total it, but all of us misplace our keys from time to time, scrape the side of the car on the curb, or scratch new paint. Surance has you covered for those accidents as well.
Apart from GAP vehicle cover, Surance has other products to help in protecting the investment from various events. These include:
- Scratch and Dent Cover: Safety from those small accidents that we all encounter in our everyday life.
- Tyre and Alloy Wheel Insurance: Damage to your tyres and wheels such as scuffs and scrapes.
- Keycare: Help for lost keys.
- Excess Insurance: Explains the excess which is the additional amount that you will be required to pay when you make a claim with your comprehensive car insurer; whether it is voluntary or compulsory.
These products imply that at Surance they consider what could be a possibility, so you do not have to. Surance thus covers your vehicle against all these risks and you are assured of your investment is safe.
Is GAP Insurance Right for You?
The extent of GAP Insurance that you require depends with the circumstances of your purchase of the vehicle and there are several things that you should consider before taking the policy.
Key Considerations:
- Vehicle Age: The younger the vehicle, the more the client will gain from availing GAP Insurance. New cars lose their value quite fast and GAP Insurance comes in handy to compensate for the difference between the market price of your car and the outstanding balance.
- Purchase Method: When you are purchasing an old car for cash, the advantages of GAP policy are significantly lesser. Older cars lose their value at a slower rate meaning that there is less difference between the current market price and the price you paid for the car.
- Finance Deals: If you are getting into long-term financing of new cars, GAP Insurance is vital. It can help you avoid the risk of paying the remaining finance on your own if your insurer’s amount is inadequate to cover the balance.
Comprehensive Insurance Check:Some of the fully comprehensive car insurance policies will offer a new car replacement in the event the car is a write-off within the first year. It is therefore important to go through the policy terms and conditions to find out if there are any exceptions or exclusions. If this cover is enough, then it is recommended to buy GAP Insurance before the end of the first year to have it for the rest of the car’s lifetime.
How much does GAP Insurance cost?
Regarding GAP Insurance policies, their price is defined by the car’s value and the finance term; however, it ranges between £100 and £300 for multi-year policies. In this regard, ALA has an online quoting system that will show one the coverage amount and the price of GAP Insurance.
In choosing GAP Insurance, the cost of getting the car back on the road and how long a person plans to own the car should be taken into consideration. The quotation tool is also clearly showing how much of the vehicle’s value will be covered by your comprehensive car insurance annually and the possible gap without GAP Insurance.
Regulatory Considerations:
The sale of GAP Insurance is strictly controlled and was conducted under some rules. First of all, ensure that your broker is 100% authorised and regulated by the Financial Conduct Authority (FCA) at the very least. As for the complaints in case they are received, every organization has its own ways of dealing with them. But if you think that you have been treated unfairly in accordance with FCA rules, you can appeal to the Financial Ombudsman. This step is also given in the event that your GAP Insurance claim has been declined initially.
How does GAP Insurance work?
GAP Insurance protects the difference between the amount you paid for your car on the first day and the amount that the insurance company will pay in case of a total loss event such as theft or write-off. This kind of insurance is most suitable for new cars that are likely to depreciate faster and for cars that are financed for long terms because you will be forced to dig into your pocket to clear the remaining balance once the car is considered a total loss.
But it is important to know what GAP Insurance does and does not include, for this aspect is often a bit ambiguous. GAP Insurance does not include personal accident or death, property damage, repairs to the car, repossessions, courtesy vehicles, any change in the value of the car due to an accident, a deposit for a new car, balances on old loans on the car, or additional warranties on the car loan.
Whereas single events such as personal injury or property damage may be covered by other policies, they are not part of the basic GAP Insurance and may attract extra costs or have to be bundled with other options.
Lest one buys GAP Insurance, it is important to know when it is not effective or will not be of any use. Though it provides a good financial shield for the difference between the car’s purchase price and its actual depreciated worth, it does not provide for personal injuries, property damages or any other related expenses. It is always important to read the fine print to determine what is covered in the policy.
Evaluating the Need for GAP Insurance
GAP Insurance is a crucial insurance cover that helps you by paying the difference between the initial cost of your car and the market value of your car in case of a total loss event. This type of insurance is most useful for new cars and those with long-term PCP finance deals, so you’re not left to pay the remainder of the value yourself. However, it is important to consider its scope and what it does not include for instance it does not include personal accident, damage to property or car replacement.
The terms and conditions of GAP Insurance should be read and analyzed to understand whether GAP Insurance is suitable to protect an individual’s investment based on their circumstances.