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Blog and 'market value clause'

After a year in the planning, was launched this week to provide greater choice for UK consumers. The range of products available on Shortfall is as comprehensive and impressive, from Motor Excess Insurance to Tyre Insurance, but core to this is our three Gap Insurance products; Return to Invoice, Vehicle Replacement Insurance and Finance and Contract Hire Gap Insurance.


Although is new, our company Aequitas Automotive Ltd already operate two established Gap Insurance brands in Easy Gap and In doing so for a number of years we would like to think we understand Gap Insurance as well as anyone else around. It is with this experience in mind that the products have been carefully designed to provide features that may offer options to our current and established brands.


The new products offer slightly different policy terms to our other brands, and to other providers in the market.


One such feature is the so called 'market value clause' on Gap products. This normally revolves around the fact that a Gap policy will pay from the market value, as defined by the Glass' Guide Retail Value for the policy, to the original invoice price paid (in the case of Return to Invoice).


With our Easy Gap and GapInsurance123 products this 'market value clause' is present. We have to stress that with every claim we have processed to date, we have never had an incidence of a shortfall between the motor insurers settlement and the Gap Insurance settlement. This is because the 'fast track' claims process involved means that our claims team can negotiate with your motor insurer directly, and this not only speeds up the settlement but means you are not required to play 'piggy in the middle' between two insurers.


In short, it works!


So this left us in a quandary with the design of the new Gap Insurance products. We understood that the process we employ works, but also understood that some consumers may be concerned that their motor insurer may not pay the required amount. This factor, in conjunction with our aim at providing an increased choice for our customers, we decided that the new Gap products would be different.


We are therefore please to confirm, that in agreement with the policy underwriters, all Gap Insurance products do not contain a 'market value' clause in the event of a claim.  


All that we ask is that if your motor insurer does provide a settlement below the market value of the vehicle then we can speak to your motor insurer on your behalf. Regardless of the outcome of this your Gap Insurance settlement will not be effected.


We hopes this clarifies this feature on your Gap Insurance policy, and remember when you call you have access to three of the leading UK brands for this product. Who else could offer you this?


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