Alps, a leading MGA specialising in add-on insurance products, legal expenses, and claims solutions for intermediaries, has announced the launch of Finance Shortfall GAP Cover, providing brokers and their customers with a more affordable, essential level of protection against vehicle finance shortfalls.
Unique in the broker market, the product has been developed to complement the existing Alps GAP offering and gives brokers greater flexibility to meet a broader range of customer needs in an increasingly price-conscious market. Finance Shortfall GAP Cover protects customers against the difference between their motor insurer’s market value settlement and the outstanding finance balance owed on the vehicle in the event of a total loss. The policy also includes up to £3,000 deposit protection, helping customers recover all or part of their initial deposit where applicable.
The launch builds on Alps’s existing GAP Plus proposition, introduced last year, which provides cover up to the vehicle’s original full invoice price. While GAP Plus continues to serve customers seeking comprehensive return-to-invoice protection, the new Finance Shortfall GAP Cover has been designed as a lower-cost alternative focused on core finance protection.
The pricing difference is significant. For example, a vehicle valued between £50,000 and £75,000 insured over a three-year term would typically retail at around £700 including IPT under the GAP Plus product, compared with £176 for Finance Shortfall GAP Cover.
Finance Shortfall GAP Cover is only available via brokers and adds another option to Alps’ growing suite of GAP products, supporting advisers in tailoring recommendations based on customer budget, vehicle type and purchase method.
Claims management for the product is handled by AMS Insurance Services, with the policy underwritten by Financial & Legal Insurance.
Ian Kember, BDM at Financial & Legal Insurance said: “We are delighted to support Alps with the launch of Finance Shortfall GAP Cover. Alps has many years of specialist experience in the GAP market and has built a strong reputation for product expertise, distribution knowledge and delivering value to both brokers and customers. Their track record in this space makes them a highly trusted partner, and we’re pleased to continue working together to broaden the choice available in the market.”
Michelle O’Reilly, Managing Director at Alps, said: “The launch of Finance Shortfall GAP Cover is about giving customers more choice and ensuring brokers have the flexibility to recommend the right level of protection for a wider range of buyers. Not every customer wants, or needs, return-to-invoice cover, but many still want reassurance that they won’t be left with an outstanding finance debt after a total loss.
“This product delivers essential GAP protection at a highly competitive price point, while maintaining fair value for customers. It also gives brokers another strong differentiator to take to market at a time when competition remains intense and margins are under pressure. By expanding our GAP range, we’re helping brokers offer clear, relevant options that suit different budgets, vehicle values and customer circumstances.”