In the United Kingdom, ALA Gap Insurance is an FCA-approved company. Since 1990, it has provided high-quality financial products in the automotive industry to both personal and corporate clients.
It is one of the UK’s oldest and most reputable GAP Insurance Brokers. With their extensive knowledge of the market in which they operate, they have been providing insurance policies to clients.
When compared to a dealer, ALA Gap Insurance takes pride in providing clients with more affordable yet high-quality policies. Because of this feature, they are the most preferred insurance provider in the country.
ALA Gap Insurance policies do not include any clauses that limit payment based on the vehicle’s Market Value (MV) or Glass’s Guide Retail value, which typically leaves clients with a shortfall. Furthermore, clients are compensated for the difference between their insurance settlement and the vehicle’s original purchase price. This would also apply to replacement costs. This is why the majority of clients prefer ALA Gap Insurance over other insurance providers in the UK.
Continue reading for more information on ALA Gap Insurance.
What is GAP Insurance?
It’s a fact of life that when you buy a new car, its value drops by one-third the moment you drive it off the lot.
If the car is written off or stolen, your insurer will pay out what it’s worth at the time – which means you’ll probably get less from the insurance company than you paid when you bought it, especially if it’s brand new. This means that when you get a replacement car, there is a ‘gap’ between what your insurer pays and what you’d have to pay to buy that car again.
This is the ‘gap’ that gap (guaranteed asset protection) insurance will cover if you purchase it. It is typically sold by dealerships and standalone providers, with policies costing between £100 and £300 for three years of coverage.
Gap insurance is useful if you want to buy a new car to replace your old one, or if you have a finance deal and owe more to the finance company than you would receive from the insurer.
Who is ALA GAP insurance?
ALA was founded in 1990 to provide financial services and products to the automotive industry. It provides a variety of specialized GAP insurance policies that are tailored to specific vehicles and situations. ALA can also provide a car warranty as well as additional coverage such as key care and tyre insurance.
Drivers are eligible for ALA GAP insurance if they purchased their vehicle from a dealership, and they may be eligible for certain coverage if they purchased their vehicle privately.
ALA is an FCA-approved GAP insurance broker. The ALA GAP insurance underwriters are London General Insurance Company and Bastion Insurance.
Why get ALA GAP insurance?
Here is the reason that you need to get ALA gap insurance for your vehicle:
You desire a brand new replacement vehicle
If you very much desire to get a brand new car, if yours is written off or stolen, you might want to look into gap insurance. For instance, if you pay £30,000 for a new car and it is written off 15 months later, your car insurer will pay out £18,000
If you’re not satisfied with the lower amount—even if it’s enough to get you a comparable replacement car—gap insurance may be worth it.
>. You have a debt to a car finance company
Gap insurance may be useful if you borrowed money to buy the car, such as a personal loan. This is because if you buy a car this way and it’s written off or stolen, even if your car insurer pays out the value it’s worth at the time, you’re still left paying off the amount you paid when you first bought it.
Even if you crash the car or it is stolen, you must still repay the entire loan. However, if you had gap cover, it would pay off the loan, ensuring you are not left to pay back money for a car you no longer own.
How does ALA GAP insurance work?
If you decide that ALA GAP insurance is appropriate for you, you can choose the policy that best meets your needs as long as you meet the eligibility requirements. You will then be covered under this policy for any financial loss you may have suffered as a result of your car being written off by your insurer.
To file a claim, you must provide ALA with the necessary documentation, and if your car insurance claim is approved and settled, your GAP insurance claim should follow suit.
ALA GAP insurance coverage
ALA GAP insurance provides a variety of policies that can cover a wide range of vehicle types. Suppose your car insurer declares your car a total loss after an accident, theft, or fire damage. In that case, GAP insurance will protect you from any financial loss you may suffer as a result of your car depreciating. The manner in which ALA will make up this shortfall will be determined by the individual GAP insurance policy you purchase.
You may be limited in the type of ALA GAP insurance you can obtain. For example, there may be a time limit on when you can get cover after purchasing your car, as well as mileage and age requirements that your vehicle must meet.
You will have GAP insurance coverage for a set period of time, as specified in your policy documents.
ALA GAP insurance offer
ALA Insurance offers various types of GAP insurance, which include:
- Agreed Value
- Back to Invoice Plus
- Contract Hire Plus
- Vehicle Replacement Insurance Plus
#1. Agreed Value
If you purchased your vehicle from a private individual or a garage but have had it for more than 6 months, this may apply to you. Your vehicle’s value is fixed at the start of the policy and can be held for up to 5 years. There is no time limit to purchase coverage if your car is less than ten years old and has less than 100,000 miles on the clock.
#2. Back to Invoice Plus
This may be for you if you want to secure the price you paid for your vehicle, whether it is owned outright or financed through PCP or HP. Coverage can be purchased up to 180 days after delivery or up to 365 days if your vehicle is brand new and you have a new vehicle replacement cover from your motor insurer for the first 12 months.
#3. Contract Hire Plus
If you already have a lease or contract hire agreement and want to cover your potential liability under the agreement in the event that your vehicle is a total loss. If you choose Initial Rental Cover, you can also choose to receive your deposit/initial rental back.
#4. Vehicle Replacement Insurance Plus
If you are particularly worried that the cost of purchasing the same vehicle again will be higher than the original purchase price (the replacement cost could also be the same or lower depending upon available deals at the time of the claim). Coverage is available for up to 90 days after delivery.
Is ALA GAP insurance any good?
The need for GAP Insurance is entirely dependent on the circumstances surrounding your purchase, and there are several factors to consider before purchasing a policy.
As a general rule, the newer the vehicle you’re purchasing, the more you’ll benefit from having GAP Insurance coverage in the event of an accident. If you’re buying a used car for cash, the benefits of having a GAP policy are much lower; older cars still depreciate, but at a much slower rate.
If you sign long-term finance agreements on brand new vehicles, you may be required to pay any outstanding finance out of your own pocket if your insurer does not pay enough to cover the balance.
You should also check with your comprehensive car insurance provider, as some will replace a car purchased brand new if it is written off within the first year. If you believe you have this coverage, carefully read the terms and conditions to ensure there are no exceptions or exclusions.
If you’re satisfied that your insurer’s coverage is adequate, GAP insurance can be purchased before the end of the first year to ensure you’re covered for the rest of the time you own the car.
ALA GAP Insurance cost
Policies for multi-year coverage range from around £100-£300, depending on the vehicle’s value and the length of your finance agreement. ALA provides an online quoting tool that will clearly show you how much you’re covered for and the cost of that GAP Insurance policy.
Considering the cost of getting the car on the road and the length of time you expect to own it, the quotation tool accurately displays how much of the vehicle’s value would be covered year after year by your comprehensive car insurance. It also tells you how much money you could lose if you didn’t have GAP Insurance.
There are rules governing the sale of GAP Insurance, so make sure your broker is fully authorised and regulated by the Financial Conduct Authority (FCA) before proceeding. While most companies will have internal complaints procedures that you must follow first, if you doubt that you have not been dealt with directly per the FCA’s rules, you can file a complaint directly with the Financial Ombudsman.
Request ALA GAP Insurance quote here.
ALA GAP insurance offers discount codes
If you come to buy a policy from ALA GAP Insurance, you might find a discount code. However, this will depend on ALA and whether or not the offer is running at the time.
Conclusion
Gap Insurance purchased from a car dealer can range from £299 to £799. At these prices, the car buyer may believe that the extra cost is not worth it, especially if it is more expensive than their comprehensive insurance policy through their car insurer. However, when you can get an online Gap Insurance quote for roughly a third of what the dealers offer, many people find it well worth it.
FAQs about ALA Gap Insurance
ALA was founded in 1990 to provide financial services and products to the automotive industry.
Al gap insurance’s contact number is 01653 916304
No, unless the gap policy specifically allows it, which is highly unlikely, gap insurance will not cover a total car without insurance.
Yes, the company provides a variety of specialized GAP insurance policies that are tailored to specific vehicles and situations.
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