Return to Invoice Gap Insurance &
Vehicle Replacement Gap Insurance.
The risks they cover.
loss of value
(Cash & Finance buyers)
In the event of a write off, your motor insurer will only pay the value of your vehicle at time of write off.
They do this because vehicles fall in value every month in line with increasing age and mileage. In these cases your insurers settlement is likely to be substantially less than you originally paid for it. This reducing value is known as a 'depreciation'.
The only exception to this is new, first owner vehicles where the insurer 'may' pay new for old in the first year of ownership. We emphasise 'may' because there are often conditions attached that result in market value payment only.
Depreciation is the most obvious financial loss when a write off occurs.
Loss of money
(Cash and finance buyers)
In write-off scenarios you will almost certainly lose money due to the effect of depreciation. Depreciation is your highest motoring cost and it causes financial loss.
For those who paid for their vehicle in full by cash, or paid a cash and or part exchange equity deposit on a finance agreement - a write off may cause the loss of a great deal of that money.
For cash buyers, the effect of depreciation could result in the loss of up to 70% of the money paid to purchase the vehicle.
For those who financed their vehicle and paid a deposit and or part exchanged a vehicle - the deposit/equity could be lost in full.
Outstanding finance risk
(If HP or PCP Finance)
Most finance agreements such as Hire Purchase and PCP are secured upon the vehicle.
When a financed vehicle is written off, the lenders security (the vehicle) no longer exists and the lender normally requires the repayment of the outstanding balance, interest and any other charge.
If your motor insurer does not pay enough for your write off to settle your finance - you may be left with no vehicle, a debt to pay and a deposit to find for another vehicle.
Personal unsecured loans may not have to be repaid when a write off occurs, but the loan continues and you are left without a vehicle.
Vehicle price increase
(Cash and finance buyers)
In many cases, the cost of replacing a written off vehicle can be substantially more than you originally paid.
Manufacturers increase their prices every year at least by the rate of inflation and when a facelifted model is launched or a model is superseded, the total value of those price increases can be more than you think.
If you choose our Vehicle Replacement Gap Insurance, these costs would also be added to your Gap Insurance claim payment.
This feature is not available for Return To Invoice Gap. If you wish to protect against price increases too - choose Vehicle Replacement Gap Insurance when your quotes appear.
(all vehicle owners)
The Association of British Insurer's statistics suggest over 500,000 vehicles are written off every year. That equates to 57 vehicles per hour, every hour 24 hours a day - 7 days a week.
Professional theft is often a high tech operation. The perpetrators have the technology and methods to overcome almost all types and levels of security - including the most basic technique of stealing the keys first!
In the large majority of write offs, the unfortunate motorist will either lose, or owe money and the amount can be substantial. Gap Insurance is an optional low cost cover to protect these risks.
Almost 1 vehicle per minute is written off, every hour, night and day.