MGA launches fleet Gap product for brokers

MGA Alps has announced the launch of a new fleet guaranteed asset protection (Gap) product for brokers.

Called Fleet Gap, the proposition has been designed to deliver protection for organisations operating commercial fleets.

It pays the greater of the shortfall between the amount paid by the primary motor insurance policy and the original purchase price of the vehicle or the outstanding finance balance.

Additionally, for fleet contract hire vehicles, the policy pays the difference between the amount paid out by the primary policy and the early termination amount payable to the contact hire company, including any advance rentals up to £2,000.

Passenger cars and light weight commercial vehicles to a value of £175,000, up to 10-years-old and a maximum weight of 3.5 tonnes are covered.

It covers claims up to £50,000 for vehicles written off due to theft, fire, accident or other unforeseeable total loss event. Alps also offers brokers and their clients terms of one, two, three or four years.

Michelle O’Reilly, managing director at Alps, said: “Fleet vehicles represent a higher risk exposure than personal vehicles because they are driven more frequently and for longer distances.

”But they are also business critical, so it’s vital that fleet operators are not left with a huge shortfall. This policy, optimised for fair-value, protects both vehicles and businesses.”

Partnership

Alps is bringing this to market in partnership with AMS Insurance Services, which will also act as claims administrators. The product will be underwritten by Financial and Legal.

Paul Fuller, managing director at AMS Insurance Services, said: “We are delighted to be working with Alps to deliver this innovative solution, adding real value for brokers and their clients.

”This product is designed to eliminate the financial setbacks fleet operators face following total loss vehicle claims, ensuring businesses can maintain momentum, protect their bottom line and focus on growth and customer service.”