Rivervale says it will resume offering GAP insurance to its leasing customers, thanks to a collaboration with MotorEasy.
The leasing company said it had long included GAP insurance as part of its proposition, until the FCA paused sales in 2024.
It said the new offering would involve MotorEasy operating sales and claims handling as well as managing associated compliance and regulatory requirements.
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Lease GAP Insurance is designed to cover the shortfall between an insurer’s settlement and the outstanding balance on a lease agreement if a vehicle is written off or stolen, offsetting depreciation.
Partnership meets raised standards
Duncan Stock, sales director at Rivervale, said: “Incorporating protection products into our customer offer has always been important to us, so we are delighted to be reintroducing lease GAP Insurance.
“The FCA’s Consumer Duty has rightly raised the standards expected of firms offering GAP Insurance, with greater emphasis on ensuring products deliver fair value and good customer outcomes. By partnering with MotorEasy, we can once again offer customers access to valuable financial protection, while benefiting from their expertise in managing the associated compliance and administration.
“MotorEasy also manages the customer journey from initial communication through to follow-up, allowing us to offer the product confidently without adding significant operational complexity for our team.
“The partnership also creates an additional revenue opportunity for Rivervale, while ensuring the customer experience and regulatory requirements remain at the heart of the proposition.”
Duncan McClure Fisher, CEO at MotorEasy’s parent company Intelligent Motoring, said: “Lease GAP insurance is arguably one of the most important protection products motorists can buy, but many are unaware of the depreciation risks they could face after a write off or vehicle theft.
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“Rivervale were seeking a partner to help them enhance their customer experience and improve long-term engagement.
“Together we have created a solution that enhances the customer journey and enables leasing customers to access GAP insurance with confidence.”
