Jackson Lee finds settlement rates on motor policies with GAP insurance have reduced on average 5-10%, as some insurers are now favouring CAP’s valuation guide over Glass’s or Parker’s
Motor insurer settlement rates on motor policies with GAP insurance have reduced on average 5-10% on the previous 12 months according to claims figures from Jackson Lee Underwriting.
Gap insurance covers the “gap” between your insurance payout and the value of your car.
Jackson Lee is also finding that some motor insurers are now favouring CAP’s valuation guide over rivals’ Glass or Parker’s.
Nick Mohan, joint managing director of Jackson Lee explains: “The net result of lower valuations is that the policyholder gets a lower redemption figure for their vehicle than they would have done last year so our GAP claims are higher.”
In 2017, Jackson Lee doubled the average increase per claim, that it was able to negotiate with insurers, from £167.54 to £330.57 per claim.
“We have been able to negotiate up the claims settlement figure for our clients,” added Mohan. “But for those without a gap policy, they will be feeling the full impact of insurers’ decision to lower average valuations.
”It appears that Glass’s and Parker’s guides are losing favour with engineers and insurers because they no longer accurately reflect the value and range of available manufacturers’ added extras on new vehicles, and also over-value used vehicles overall.
”Some insurers will also use a combination of guides, which is perfectly acceptable by the ombudsman, but this also tends to present lower motor valuations.”