Our Return To Invoice Gap Insurance policies are different.
Why and how do they work?
Be cautious when shopping for your policy. This list should help you.
There are subtle yet crucial differences in cover from provider to provider, despite them 'appearing' to be the same and described as the same.
We know some on-line and dealership policy providers ;
- Will not cover theft of vehicle with use of keys (a common form of theft today) - our policies will,*
- Impose a payout reduction clause year on year to reduce their risk - not so with our policies,
- Only pay up to 100% of Glasses Guide retail value - we cover up to 110%,
- Will not take factory fitted options into account - ours will, together with £1500 dealer fit accessories,
- Pay you less if you negotiated a healthy part exchange price at time of buying your car - ours will not!,
- Will not pay a finance settlement figure if it exceeds the purchase price - ours will,
- Require you to 'register your personal details' before giving a quotation - we do not,
- Reduce their risk to a maximum of 3 year cover - we offer cover up to 4 years,
- Only cover vehicles valued up to £50,000 - we cover vehicles up to £180,000,
Do please read the policy terms and conditions carefully before buying anywhere. These are just a few of the negative terms we found whilst browsing.
" Our Gap Insurance products are of such high quality and are so comprehensive, prestige franchises such as BMW, Mercedes and Audi choose to sell them - albeit at substantially higher prices!. As you would expect those dealerships and their customers insist on the best. "
Now you know what to look for - how does the policy work?
In the event of an insurance write off as a result of an accident, fire or most commonly theft, Return to Invoice Gap Insurance will pay the difference between what your Insurer agrees to pay and your original invoice price - or the outstanding settlement figure owed to your finance company – whichever is the greater up to the claim limit you have chosen.
It could be important to you. It's not just our view, check this article written by a web site owned by The Daily Mail. This Is Money Article. Also read the comments posted at the foot of the article for real world examples.
Return To Invoice Gap Insurance is available for 1 to 4 year periods and a choice of claim limits to suit your requirements;
- £5,000.00
- £10,000.00
- £15,000.00
- £25,000.00
- plus a unique £50,000.00 !
Return To Invoice Gap Insurance can provide valuable cover for new or used car owners. Cover may be purchased within 180 days from date of vehicle invoice.
Some circumstances make Return To Invoice Gap Insurance an even more appealing product and these include;
- High mileage motoring,
- High performance or prestige cars,
- Car buyers who paid a substantial deposit and financed the balance,
- Higher than average depreciation vehicle
Why Is It So Popular ?
When we buy a car we expect it to depreciate in line with age and mileage. When we decide to renew it, we have usually planned financially for that expense. When a car is written off after the first year of ownership, that expense is forced upon us unexpectedly. Unlike any other insurance we buy, motor insurers reduce their risk by only paying part of the replacement value, and that can be as little as 30% in the third year. Return to Invoice cover will step in to ensure your original cash investment is returned to enable you to buy a like for like replacement.
High Mileage Drivers
It will come as no surprise to hear that high mileage cars depreciate much faster and to a greater extent than low or average mileage cars. What may come as a surprise is just how low an insurance assessor might value your high mileage car, if you are unfortunate enough to have it stolen or written off in an accident or theft. The irony is, high mileage drivers are by nature more dependent upon their car than the average mileage motorist, and their financial shortfall will be substantially higher too.
High Performance & Prestige Cars
You probably don’t need us to tell you - high performance and prestige cars are often the target of professional thieves. Our experience tells us even today’s expensive tracking systems are not enough to deter or thwart the determined thief. Cars in this category are usually premium priced cars where write off losses can be substantial.
Higher Than Average Depreciation Vehicles
High depreciation does not necessarily mean bad or undesirable car. Higher than average depreciation can simply be the result of higher than average production / higher sales volume. Prestige cars are no longer immune from the effects of depreciation. Almost all brands, including German prestige car manufacturers now heavily discount their cars to help them hit their increasing sales targets. This creates high levels of depreciation which is reflected, if not inflated, when a vehicle is unexpectedly written off by an insurer.
*providing that is an indemnity covered under your motor insurance policy.