What is the Catch? Why are your prices so much cheaper than main dealerships?

When you compare gap insurance prices with your main dealership you may think that there is something wrong with either the standard of cover or perhaps a catch.

After all if your local dealership has quoted an average price of £395, theirs has to be of a better standard, right?

Sorry no, there are real factual reasons that make internet prices much lower than your main dealerships and it has absolutely nothing to do with levels of cover, service, support, back up, levels of cover or claims handling.


If you buy gap insurance directly from the dealership that you are buying your vehicle from, they are legally bound to charge you insurance premium tax (IPT) at a much higher rate. If you buy independently this rate is much lower. This means that currently there is a difference of 14%.


Insurance just like any business, is based on volume. When it comes to gap insurance, this is how many policies a supplier provides. Your local dealership can only provide cover for customers who have bought vehicles from them. This means that the sheer volume of policies they provide is tiny in comparison to online providers who can supply a main dealerships yearly target in a matter of days. This in turn means that online supplier prices are much lower.

Being completely honest, trading online is much less expensive than maintaining a dealership. This means that online suppliers can keep their cost base low and profit margins to a minimum. 




At EasyGap we are so confident in our levels of cover and insurance pedigree that should your dealership have any concerns with the levels of cover we provide, please ask them to contact a member of the team who will be only too happy to discuss any aspect of the cover we can offer.

Our offices are open Monday to Friday 9am until 7pm and we are always happy to answer any gap insurance questions you or your local dealership may have.