Gap insurance ‘more relevant’ for new cars

Guaranteed Asset Protection (Gap) insurance is more “relevant” for people who are buying a new car as opposed to a second-hand one, Auto Trader magazine has said.

Tom White, a spokesperson for the magazine, said that people considering buying a new car should look around for the most competitive Gap insurance deal.

“We’d always recommend some element of price comparison, but also benefits comparison – there are a number of different Gap type products so cover will vary considerably,” he commented.

Mr White noted that this type of insurance is more important for new and expensive cars, adding that it is therefore not an important consideration for all drivers.

According to the AA, the average car loses around 40 per cent of its value by the end of the first year.

By the end of the third year the average car will have lost around 60 per cent of its value if its owner drives about 10,000 miles a year.

Tags: owner, new cars, Gap, different gap type, auto trader magazine

BBA supports new dormant account legislation

The banking industry is supporting a government consultation paper on unclaimed assets which is issued today (March 20th).

Officials at the British Bankers’ Association (BBA) have thrown their support behind the proposed approach of dealing with unclaimed assets.

Essentially the proposed legislation will allow unclaimed monies to be invested into community causes while still being reclaimable by the owner after it has been used.

Money can only be used for other purposes once an account has lain dormant for 15 years and the original bank or building society will remain in control of any further customer relations regarding the account.

The purpose of this is to ensure that if the customer does try to claim his or her money back, it will be as easy a process as possible.

“All along our priority has been the protection of the right of customers to reclaim their monies at any time,” commented the BBA’s chief executive Angela Knight.

“A key element of the approach proposed within the consultation paper therefore is that even after the transfer of their ‘unclaimed assets’ individuals will retain the right to reclaim their monies via their bank or building society as at present.”

It may be worth checking to see if you have a dormant account which you have forgotten about and may contain a nice financial surprise.

Tags: british bankers association, purpose, business, customer, unclaimed monies, consultation, owner, bank