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Safe and Sound – Guaranteed Asset Protection Insurance

Guaranteed Asset Protection – need to know

The Financial Conduct Authority (formerly Financial Services Authority) has just begun a study into general insurance add-on products with an appeal for evidence of competition in the marketplace. The company will assess whether prices are excessive for a given quality, whether the quality is what consumers reasonably expect, any profitability differentiation between add-on and standalone sales for underwriters and distributors, and whether consumers are actively considering using alternative providers. Guaranteed Asset Protection is one of the first products coming under scrutiny.

The inquest will consider evidence from both companies and individuals, and look at the nature of competition in these markets, in particular whether these products represent good value for money and whether consumers understand what they are getting with their policy. In the past, GAP products were made extremely complicated, which meant that many dealership staff didn’t fully understand what was on offer so customers were often mis-sold. Huge mark-ups were also commonplace, which made it difficult for customers to justify the expense.

Last year we decided to streamline our GAP products and make them easily understandable and fairly priced, in line with the FCA’s Treating Customers Fairly principles. We also made several product improvements, and introduced a range of pay-monthly cover for used cars and motorhomes to provide a claim limit of £10,000 (adequate for the majority of mainstream used family cars) starting from as little as £9 per month RRP.

Every year in the UK over 500,000 cars are declared a Total Loss through accident damage, fire or theft, and those drivers will receive an insurance settlement for the current market value of the vehicle at that time – which will be much less than they paid originally. Our Safe and Sound Guaranteed Asset Protection policy will cover the financial shortfall between the original purchase price and the motor insurance settlement, meaning that if the worst does happen you will receive exactly what you paid in the first place, up to a claim limit of £10,000.

EXAMPLE:

You buy a four year old car from a dealer at the advertised cost of £5,000. Eighteen months later, that car is declared a Total Loss and the insurance company make an offer for the vehicle – but it is for the current market value, which is £3,000. Our Guaranteed Asset Protection will pay the £2,000 shortfall, taking the amount to the purchase price of £5,000.

Key benefits of our Guaranteed Asset Protection:

  • Cover lasts for up to three years (or up to five if a finance agreement was taken out)
  • Available as pay monthly and straight payment.
  • One claim limit which is for up to a maximum of £10,000.
  • No excess contributions if you make a claim.

Many Safe and Sound dealers can arrange Guaranteed Asset Protection cover on your behalf, so your investment remains secure long after you leave their showroom. Simply speak to your dealer for more information or call our sales team on 0800 021 3030. Remember that only Safe and Sound dealers will provide you with a FREE motoring package worth around £500 when you buy a car from them, including an exceptional car warranty and vehicle safety inspection, amongst others.

Registered office: The WMS Group Ltd,
Oxford House, Oxford Road, Thame, Oxon OX9 2AH
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01844 293 810
sales@safeandsound.co.uk