Are You Protected? Why GAP and Extended Warranties Matter

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Don't get caught unprepared. Emília Nagy shares insights on the importance of GAP insurance and extended warranties for Hungarian drivers. Learn essential information from the Country Manager at DEFEND INSURANCE GROUP, a leading specialty insurance provider.

Given the recent stabilization of used car prices, why should vehicle owners consider GAP insurance? While used car values haven't declined as significantly since the pandemic, they are now starting to decrease more rapidly due to increased vehicle production. GAP insurance remains essential to protect against potential losses in vehicle value. It covers the difference between your car's current market value and the purchase price or outstanding loan balance in case of total loss or theft. This ensures you won't face financial difficulties if your vehicle is damaged or stolen. By protecting you from potential financial burdens, GAP insurance allows you to replace your vehicle without incurring additional costs.

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Are there any specific types of vehicles where GAP insurance is particularly recommended?

GAP insurance is useful for any type of vehicle, but it's especially important for those financed by a loan or lease, as well as for new, more expensive, and luxury models. It's also particularly valuable for electric vehicles, where the value can depreciate quickly. The advantage of our DEFEND Gap insurance is that it’s suitable for a wide range of vehicles with all types of engines, up to 6 years old, and with a purchase price of up to 40,000,000 Ft. You can also customize the insurance benefit limit according to your needs.

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Extended warranties are becoming common for appliances. Why should I get one for my car?

Cars are significantly more expensive than appliances, and repairs can be much more costly. Our DEFEND Car Protect warranty offers excellent value, costing only 3-5% of the vehicle's purchase price. This is considerably lower than appliance warranties where it is 20-30% and can provide significant savings in the long run. With the rising cost of car parts and labor, an extended warranty is a valuable investment to protect against unexpected repair expenses.

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What are the benefits of GAP insurance and extended warranty for car dealers?

Firstly, I would mention the increase in credibility and loyalty. By offering your customers an extended warranty, you help build trust and loyalty toward your dealership, which in turn boosts vehicle sales. Similarly, with GAP insurance, when you protect a customer from financial loss, they are more likely to return to you for their next vehicle.

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What are the most common customer concerns or misconceptions about GAP insurance and extended warranties?

Many drivers mistakenly believe that accidents won't happen to them and may be reluctant to purchase even CASCO insurance. However, even experienced drivers can face accidents, theft, or natural disasters. Some also believe that primary insurance, like CASCO, will provide enough to buy a new vehicle, but it only covers the current market value, which is often significantly lower than the purchase price. And, of course, there are concerns about claims. Here, I’d like to mention that last year alone, we processed more than 57,000 claims within the group, approving over two-thirds of them.

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How is DEFEND INSURANCE adapting to changes in the automotive industry, like the rise of electric vehicles? We continuously update our products to meet evolving market trends and customers' needs. For example, we've been offering GAP insurance for electric and hybrid vehicles for several years. We were also one of the first to introduce extended warranties specifically designed for EVs. Recently, we've expanded coverage to include hybrid systems, ensuring our warranties are applicable to vehicles with all types of engines. To maintain top-tier service, we prioritize technological development, operational efficiency, and employee growth. A significant advantage of DEFEND INSURANCE GROUP is our ability to customize products for both our partners and customers.

Don't risk financial loss. Protect your car with GAP insurance and extended warranty. You can find more information about DEFEND INSURANCE GROUP and their products at www.defendinsurance.hu.