Alps broadens Gap insurance range

Alps has expanded its guaranteed asset protection (Gap) insurance portfolio with the launch of a finance shortfall product.

The proposition has been designed to protect motorists from being left with outstanding finance debt if their vehicle is written off and their motor insurer’s settlement falls short of the amount owed under a finance agreement.

Under the policy, customers are covered for the difference between their motor insurer’s market value settlement and the remaining finance balance. The product also includes deposit protection of up to £3,000 for customers with lease or contract hire agreements.

Alps said the new cover complements its existing Gap Plus proposition, which was launched last year and provides protection up to a vehicle’s original invoice value.

Focus on affordability

The MGA said the latest product had been developed to give brokers greater flexibility when recommending cover to customers with differing budgets and protection requirements.

Michelle O’Reilly, managing director at Alps, said not every customer required comprehensive return to invoice protection, but many still wanted reassurance they would not face an outstanding finance liability following a total loss.

She added: “It also gives brokers another strong differentiator to take to market at a time when competition remains intense and margins are under pressure.

“By expanding our Gap range, we’re helping brokers offer clear, relevant options that suit different budgets, vehicle values and customer circumstances.”

The policy is distributed exclusively through brokers, with claims managed by AMS Insurance Services and underwritten by Financial and Legal Insurance Company.