Demand for GAP insurance and extended warranties grows

Need for Gap insurance plan and prolonged warranties for Option Fuel Vehicles (AFVs) has risen over the past four a long time.

Due to the fact 2018, Intelligent Motoring has found the variety of requests for Hole insurance coverage rates increase by 10%.

June 2022 figures reveal a YOY improve of 3.2%, and the first six months of 2022 saw 86% much more rates than the similar period in 2021.

AFV prolonged guarantee rates now account for 5% of all estimates, mounting from less than 2% in the same interval in 2018.

“Whilst the fact is that AFVs accounted for considerably less than 2% of the UK’s overall vehicle parc by the conclusion of 2021, new motor vehicles product sales keep on to accelerate at velocity.

As these vehicles commence to age and filter by means of to the three-year-aged moreover applied current market – the core market for extended warranties – we can hope to see a comparable rise in income of EV warranties,” claimed Duncan McClure Fisher, CEO of Intelligent Motoring.

“An uplift in demand for Hole insurance policies and particularly prolonged warranty, is encouraging, and implies shoppers ever more recognise the value of include-on ancillary solutions that safeguard the wellbeing and fiscal integrity of their motor vehicle order.

“Pandemic economical fears, coupled with the growing expense of dwelling, are also likely to have stimulated customer worries to guard disposable incomes and stay away from sudden possession fees.”