Managing general agent Alps has launched a contract hire finance shortfall GAP cover product to provide protection against vehicle finance shortfalls. In the event of a total loss, the product covers the difference between the market value settlement provided by insurance and the outstanding finance balance owed on the vehicle.

The product is a lower cost option to Alp’s existing GAP plus product, which provides cover up to the vehicle’s original full invoice price.

Alps will distribute the new product exclusively through brokers. It is underwritten by Financial and Legal Insurance and AMS Insurance Services will handle claims.

Michelle O’Reilly, managing director at Alps, said: “This new product 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.”

Talat Ahmed, sales director at AMS Insurance, added: “We are delighted to partner with Alps on the launch of this innovative 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.”