Should You Buy GAP Insurance From A Dealer? | Dynamo Cover

Should You Buy GAP Insurance From A Dealer?

should i buy gap insurance from dealer

should i buy gap insurance from dealer

If you’ve ever bought a relatively new car from a dealer (i.e. brand new or approved used), you will likely be asked whether you want to take out a GAP insurance policy directly with them. Therefore, you may wonder whether you should buy directly from them instead of elsewhere. After all, you are already in the process of buying a car with them, so is buying it from them the best thing to do?

To help you get a better understanding of where you should buy GAP insurance, below we discuss everything you need to know.

Are Dealership Policies Any Better?

Although a dealer may offer you a branded policy that gives you a sense of assurance, don’t be fooled. This is because many of these policies are simply outsourced to third-party providers who pay for the right to use the dealership’s brand.

Therefore, the dealership won’t be the one that manages your claim or any queries that you may have. The main difference compared to a provider such as ourselves is that they charge a much larger premium for the policy.

In a nutshell, they are often no better than our (or even our competitors!) policies, and we advise that you decline their offer and go elsewhere to save yourself a small fortune.

Don’t Be Pressurised By The Dealer

Many dealers may give you a hard sell to boost profit to purchase their GAP insurance. However, as per the Financial Conduct Authority (FCA) guidelines, motor dealers must tell you that there are alternative providers of GAP insurance.

They also can’t sell it to you on the same day you buy your car (there needs to be at least two days between the date you buy the car and the quote you are given). Other changes since the FCA stepped in are that the dealer must make it clear that there are other providers to consider and that it’s not a legal requirement. If they fail to comply with the FCA’s guidelines, there will be repercussions.

Therefore, never feel pressured into purchasing GAP insurance with your dealer.

Are There Any Benefits To Buying From A Dealer?

To be completely transparent, although the negatives far outweigh the positives, there are some reasons why car owners choose to buy GAP insurance from a dealer.

The first reason is that it’s convenient as you can sort it all out there and then. The second positive that applies to some is that the dealer can often bundle your GAP payments into the car’s overall price or other policies you are taking out (i.e. alloy wheel cover).

However, again, we must stress that you are paying a premium for this convenience.

How Can I Get GAP Elsewhere?

As GAP insurance isn’t a legal requirement, you don’t have to buy it immediately (although the sooner, the better). Therefore, shopping around on comparison sites (you’ll find Dynamo!) or coming directly to us is advised.

If you decide to get GAP insurance through Dynamo, our expert team will be able to answer any of your questions, and you can get an online quote in just a few clicks, where you’ll see just how much cheaper our GAP insurance policy is when compared to the likes of a dealer’s. You’ll also be able to view and decide which of the different types of GAP insurance policies is best for your requirements.

Conclusion

It’s important to note that GAP insurance from a motor dealer isn’t that much different from other policies available online.

However, the price you’ll pay can be 2 to 3 times more than a quote from Dynamo Cover. You may also not receive the benefits that we offer, and it’s for this reason why you should always shop around.

If you require further information, please get in touch with our team, where we can talk in far greater detail regarding our GAP insurance policies.

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