Latest news with #MotorEasy
Daily Mail
10 hours ago
- Automotive
- Daily Mail
The little known car insurance that could save you £5,000 as payouts TREBLE
Motorists who claim on a little-known car insurance product are finding it more valuable than ever, as average payouts have trebled in four years. The average payout from Guaranteed Asset Protection - better known as GAP insurance - has jumped from around £1,600 in 2021 to almost £5,000 this year, according to MotorEasy. But the product, which is primarily used to cover a potential shortfall in a car's value compared to what must be repaid on a finance agreement, in case it is written off in an accident or stolen, has proved controversial in the past. However, owners who have bought cars outright can also get cover for the difference between the price paid and what insurer deem the value at the point of a claim. The Financial Conduct Authority launched a probe in 2023 after it was revealed that the average driver with GAP insurance claimed once every 300 years, raising doubts over whether the policy was worth having at all. However, new data exclusively shared with This is Money suggests those who do need to make a claim are likely to see far more substantial payouts due to the current cocktail of financial risks faced by drivers who have borrowed to buy cars. Rapid depreciation suffered by some cars - especially electric vehicles - combined with more insurance write-offs, linked to higher repair costs and parts shortages, as well as rising motor theft, have seen the cash value of GAP claims soar. Experts say the increase in value of claims has shifted GAP insurance from a 'nice-to-have' policy to a 'vital financial safeguard' for those buying cars. One of the reasons why GAP insurance has proved so controversial in the past is due to it often being sold by dealers alongside cars. This can lead to higher costs and those taking out the cover can often pick up considerably cheaper GAP insurance from a broker. MotorEasy, the leading car ownership platform, which offers GAP Insurance, believes the increase in value of payouts 'underscores the growing financial risk faced by car owners' in 2025. It says the combination of factors that has tripled average claim amounts can be traced back to the impact of Covid-19. The pandemic brought about a period of unusual appreciation in used car values, but prices have since declined to levels seen before the outbreak. However, for EV, value retention has dropped off a cliff edge, with battery cars now typically losing more than half of their value in just two years. While used car prices have been falling, purchase costs for new, more technically advanced vehicles have risen, further increasing the gap between the purchase price and the current market value - thus pushing up GAP insurance payouts. MotorEasy told This is Money it has seen claims exceed £20,000 for some luxury EV instances. An ongoing supply chain issue for spare parts triggered by factory closures and the outbreak of conflict since the pandemic, coupled with the more complex nature of modern vehicles and costlier components, has also prompted an increase in insurance write-offs. This has both triggered an increase in usual volumes of claims but also means owners face a larger financial shortfall if their relatively new car is deemed a total loss. There have also been high payouts on theft-related claims, with significant financial losses accrued by some models that have been targeted by criminal gangs and suffered from lower residual values as a result. MotorEasy said 41 per cent of GAP claims over £15,000 have been for stolen Range Rovers, which have been the focus of the recent motor crimewave and - for a period - caused values of some Range Rovers to tumble. 'Our latest data paints a clear picture; the financial risks associated with car ownership are escalating,' said Duncan McClure Fisher, CEO of MotorEasy's parent company, Intelligent Motoring. 'Making matters worse, economic pressures are leading drivers to delay maintenance and repairs, increasing the risk of mechanical failure and potential write-offs. 'In such cases, the depreciated value of a poorly maintained vehicle further widens the gap covered by GAP insurance. 'The combination of so many influential factors has created a 'perfect storm' where GAP insurance is no longer just a nice-to-have, but an increasingly vital financial safeguard.' GAP insurance is typically sold as a standalone policy or as an add-on to other sorts of financial deals, like car insurance. It is usually offered to new car buyers at the point of purchase along with a number of additional products, including additional bodywork protection and cover for interior damage. However, with very few motorists using these policies - or even knowing they have one at all - and huge commissions made by sales staff selling them as add-ons, the Financial Conduct Authority (FCA) in 2023 launched a probe into them. Following the investigation, the watchdog raised concerns that the product is 'failing to provide fair value to some consumers,' which saw some 80 per cent of GAP insurance deals pulled from the market. Car buyers are advised to compare GAP insurance prices through a third part, rather than simply taking out cover through a dealer.
Telegraph
02-03-2025
- Automotive
- Telegraph
Why are Range Rovers still so popular if they're so unreliable?
The Range Rover Evoque is the worst car in the UK to own, according to the annual Which? survey. More specifically, it's the plug-in hybrid (PHEV) version that's attracted the most ire from owners, because of it spending an average of 21 days of the year off the road for repairs. But that doesn't stop the British-made 4x4s produced by Jaguar Land Rover from selling by the transporter load. Last year, 38,126 highly profitable new Range Rovers, Range Rover Sports, Velars and Evoques left UK showrooms. Arguably the first-ever luxury SUV at its launch in 1970, the original Range Rover has since spawned four further generations, new smaller derivatives and become the byword for go-anywhere luxury – among some owners, at least. Others probably wish they had never clapped eyes on one, let alone bought it. While the Which? survey was a small sample of owners, warranty provider MotorEasy backs up the consumer champion's findings. Its reliability index rates three of the four Range Rover models as only one out of 10. We've asked two readers who stand on opposite sides of the debate for their opinions. Feel free to join the discussion in the comment below. The case for Range Rover Geoffrey Miller, retired orthopaedic surgeon and treasurer of the Range Rover Register My first close-up encounter with a Range Rover was in 1981 on a campsite in southern Brittany. We had driven down in our family Austin Maxi, which had trouble towing even a modest family caravan uphill, and I thought this Range Rover looked fantastic. A few years later, we were looking for a bigger, better tow-car and something I could maintain with a spanner. I thought a Land Rover would be fun and test-drove a 110 V8 petrol, but it wouldn't fit in the garage. So a Range Rover it was, and we were lucky enough to buy one of the last 3.5-litre V8s with twin carburettors, before they went fuel-injected. I took delivery in August 1985. It cost £18,600 – more than double the price of an Austin Montego Estate. Unlike the Montego, the Range Rover was a source of wonder to people. We took it to France in 1986 and when we arrived at our campsite, people crowded round to look at it. Standing out wasn't unusual. Range Rovers were quite scarce in the mid-1980s, and if you drove a white one like mine… Well, the only other people who drove white Range Rovers were the police, so on the motorway the traffic parted like the waters of the Red Sea. It was hilarious. I have always bought things that I like rather than being swayed by a particular brand. But after buying the Range Rover, I did fall in love with the brand. Within the club, other owners are as passionate about Range Rovers as I am. For a while, I was a bit unusual in that I owned only one. One of our members has 19! The Range Rover was a super car and remains so; I still have mine 40 years later. They have always been cars people have aspired to and if you have one, you feel as if you've made it in life. They are far and away the best 4x4 as well as fabulous cars to drive. I encountered the Range Rover Sport for the first time in 2005, when it was about to be launched. I fell in love with it almost instantly. I have a post-facelift 2009 model with the 3.0-litre TDV6 engine. That's a great motorway cruiser, a fantastic tow-car and goes round corners like it's on rails, which is remarkable for a nearly three-ton vehicle. Once you've driven a Range Rover, you really appreciate the height of the driving position, their size and presence. When you've owned one, they really do get you. The argument against Simon Payne, company director In my experience, Range Rovers are missing a reverse gear. It has been replaced with an 'I'm so superior, I'll never have to give way on a single-track road' button. Press this and it entitles the driver to sit there looking impatient while the other, 'lesser' car struggles to reverse around a blind bend – even if it's their right of way. As he passes, the Range Rover driver looks down and sees the gently shaking wrist of the other driver. 'Shouldn't be driving with Parkinson's,' he mutters. No, mate, the other driver is using sign language to suggest you're a regular self-abuser. Range Rover owners clearly don't care what other drivers think of them, as people flock to buy these cars for some hard-to-fathom reason. It's certainly not down to the dealerships. Because they don't have to do much work to sell cars, the smartly suited sales staff are proportionately terrible. I test-drove a Land Rover Defender recently and liked it greatly. But the dealership was so awful I couldn't bring myself to buy it, let alone a Range Rover. The company's marketing department seems as dumb as the dealers. The new '2025 Range Rover facelift' will remind many target customers of the agony of a failed cosmetic procedure. Range Rover might be better off simply calling it an update. The cars themselves are equally pointless, particularly if you want to use them to get to normal places – which is, after all, the primary purpose of a car. A friend has one of the new models. It's so gargantuan, he can no longer park in my drive. As I live in the sticks, he has to leave it miles away, and when he finally arrives on foot, he's covered in mud. He then spends the evening worrying about whether his car will still be there when it's time to go home. So, other drivers hate them, the dealers and marketing department are dreadful, and they're too big to use in everyday life. Surely there must be one upside? Well, here it is: drug dealers, footballers and their wives, plus property developers, take note. In these uncertain times, having the ability to liquidate any asset is always useful. And there seems to be a roaring trade in stolen Range Rovers. So, insure yours for more than it's worth and when times are hard, simply plan a trip to London. Once your car has been stolen – it probably won't take long – you can use the Trainline app to get home. And with your Range Rover sailing away to its new life in the sun, we will all benefit.
