David and Goliath: Online GAP Insurance Vs Main Dealership?
June 10, 2019
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My parents always taught me that nothing is for free in this life and that invariably you only get what you pay for. A chicken sandwich is a chicken sandwich but the free range chicken sandwich with fresh rocket pesto and baby cherry tomatoes on seeded granary bread will cost more than a pre packed over processed reconstituted chicken roll.
Unfortunately quality costs money!
So with this in mind you would be forgiven in thinking that the types, quality and performance of main dealership GAP insurance would leave the on line suppliers way behind.
So sorry but you are mistaken.
There are three very easy explanations as to why on line GAP insurance suppliers are traditionally so much cheaper none of which have any bearing on the types, cover, services levels or perform of the policy.
When you buy GAP insurance directly from the dealership that you have bought your vehicle from they are legally bound to charge you insurance premium tax at a much higher rate. This is not their fault and is instead a legal requirement.
Economies of scale. The average dealership will supplier GAP insurance policies to on or around 33 % of their customers. For an average dealership supplying 1000 vehicle this is around 333 policies per year. On line specialist suppliers can provide this many policies in a matter of days. This said their supplier price is noticeably different.
This is the most difficult to explain and you have to draw your own conclusion. If I was to say that on line suppliers do not pay commission to sales executives, business managers, finance houses, or manufactures I will leave you to make your own conclusion.
Instead when you peel back the layers and physically look at the polices in most cases the levels of cover offered by on line suppliers is in fact far superior. More choice, better flexibility, longer cover, more features. In most cases the on line suppliers are the real specialists who instead can provide a wealth of experience and guidance.
After all if you wanted car insurance would you naturally think of running down hot footed to your local dealership to ask for a quotation or instead would you not try a couple of comparison websites or a specialist insurance broker? So why should GAP insurance be any different?
So where to buy GAP insurance is up to you. Just bear in mind that cheaper on line prices does not mean dilution of cover, instead I prefer to say it just means better value for money!
Article Source: http://EzineArticles.com/6697054
Unfortunately quality costs money!
So with this in mind you would be forgiven in thinking that the types, quality and performance of main dealership GAP insurance would leave the on line suppliers way behind.
So sorry but you are mistaken.
There are three very easy explanations as to why on line GAP insurance suppliers are traditionally so much cheaper none of which have any bearing on the types, cover, services levels or perform of the policy.
When you buy GAP insurance directly from the dealership that you have bought your vehicle from they are legally bound to charge you insurance premium tax at a much higher rate. This is not their fault and is instead a legal requirement.
Economies of scale. The average dealership will supplier GAP insurance policies to on or around 33 % of their customers. For an average dealership supplying 1000 vehicle this is around 333 policies per year. On line specialist suppliers can provide this many policies in a matter of days. This said their supplier price is noticeably different.
This is the most difficult to explain and you have to draw your own conclusion. If I was to say that on line suppliers do not pay commission to sales executives, business managers, finance houses, or manufactures I will leave you to make your own conclusion.
Instead when you peel back the layers and physically look at the polices in most cases the levels of cover offered by on line suppliers is in fact far superior. More choice, better flexibility, longer cover, more features. In most cases the on line suppliers are the real specialists who instead can provide a wealth of experience and guidance.
After all if you wanted car insurance would you naturally think of running down hot footed to your local dealership to ask for a quotation or instead would you not try a couple of comparison websites or a specialist insurance broker? So why should GAP insurance be any different?
So where to buy GAP insurance is up to you. Just bear in mind that cheaper on line prices does not mean dilution of cover, instead I prefer to say it just means better value for money!
Article Source: http://EzineArticles.com/6697054