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Guaranteed Asset Protection or GAP Insurance can safeguard many car owners, including Mazda drivers in the UK. It provides financial protection if your car is stolen or written off.
Depending on which type of GAP protection you choose or is suitable, GAP cover can top up your motor insurance settlement (designed to cover the cost of the same vehicle at the time of claim) following a total loss declaration by the motor insurer. The GAP protection can cover the difference between the car's current market value and the amount you originally paid, any outstanding finance or even the cost of an equivalent replacement Mazda.
Here we delve into Mazda's history, current model range, and various GAP insurance products, including Return to Invoice (RTI), Vehicle Replacement (VRI), and Contract Hire GAP insurance.
We will also discuss their applicability to different purchase and leasing options such as cash buys, hire purchase, personal contract purchase (PCP), and contract hire lease agreements.
Mazda's journey began in 1920 with the founding of the Toyo Cork Kogyo Co., Ltd. in Hiroshima, Japan. Over the years, Mazda has become known for its innovative engineering, including developing the famous rotary engine in 1967. Today, Mazda offers a diverse range of vehicles that cater to various needs and preferences.
Mazda's most remarkable success story is the MX-5 roadster, affectionately known as the Miata in certain parts of the world. Launched in 1989, it became an instant success and is still sold in great numbers today.
RTI GAP insurance covers the difference between your car's current market value and the original invoice price you paid. This option is suitable for cash buys, hire purchase, and PCP arrangements, ensuring that you receive the total purchase price of your Mazda in the event of a total loss.
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VRI GAP insurance goes a step further, covering the difference between your car's current market value and the cost of a brand-new replacement model, provided the Mazda you buy is a brand-new model. This insurance also applies to cash buys, hire purchase, and PCP deals, providing extra peace of mind knowing that you can replace your Mazda with a new equivalent if necessary.
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For those who choose a contract hire lease agreement, Contract Hire GAP is tailored to your needs. Suppose the car is deemed a total loss. In that case, this insurance covers the difference between your car's current market value and any outstanding lease payments or settlement figure, ensuring you're not left with a financial burden if your leased Mazda is stolen or written off.
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Understanding the critical differences between RTI, VRI, and Contract Hire GAP insurance is crucial in selecting the right product for your Mazda. RTI GAP insurance is ideal for those who want to recover the original purchase price, while VRI GAP insurance is best for those who wish to secure a brand-new replacement vehicle. Contract Hire GAP insurance is specifically designed for those with lease agreements, ensuring that outstanding lease payments are covered.
By comparing the features and benefits of each GAP insurance product, you can determine the best option for your circumstances. Assess your financial situation, the age and value of your Mazda, and the type of purchase or leasing agreement you have in place. Consider the potential depreciation of your vehicle and your willingness to invest in a brand-new replacement if necessary. Consult with a qualified insurance specialist if you require further guidance in making your decision.
A1: Yes, GAP insurance is available for both new and used Mazda vehicles. However, the eligibility criteria, such as the age and mileage of the car, may vary depending on the insurance provider. It's essential to check with your chosen provider to ensure your used Mazda qualifies for coverage.
A2: Purchasing GAP insurance as soon as possible after acquiring your Mazda is recommended, as the vehicle depreciates immediately. Some insurance providers may have a time limit within which you must purchase GAP insurance, such as within 90 or 180 days of buying or leasing your vehicle. Check the requirements of your chosen provider to avoid missing the eligibility window.
A3: GAP insurance coverage typically lasts for the duration of your finance agreement or lease contract, often between 1 to 5 years. However, some providers may offer shorter or longer coverage periods depending on your needs. Ensure you understand the coverage duration offered by your chosen provider and select the one that best suits your requirements.
A4: GAP insurance policies are generally vehicle-specific and non-transferable. However, some providers may allow a transfer of coverage to a new vehicle under certain circumstances, such as when upgrading or replacing your Mazda due to an accident or mechanical issue. It's essential to check your policy's specific terms and conditions to understand any transfer options available.
A5: Most GAP insurance providers allow you to cancel your policy within a specified period, typically 30 days, offering a full refund if no claims have been made. Beyond this period, you may still be able to cancel your policy, but the refund will likely be pro-rated based on the remaining coverage duration. Check your policy's terms and conditions to understand the cancellation process and any associated fees.
A6: No, a comprehensive car insurance policy typically covers damages and losses due to accidents, theft, or other incidents up to the current market value of your Mazda. It does not cover the difference between the market value and the original purchase price or outstanding finance, which is where GAP insurance comes into play. GAP insurance complements your comprehensive car insurance policy by covering this financial gap in the event of a total loss.
A7: In the event of a total loss, you should first contact your comprehensive car insurance provider to file a claim. Once they confirm the payout amount based on your Mazda's current market value, you can contact your GAP insurance provider to initiate a claim for the difference. Each provider may have specific documentation requirements and timelines, so reviewing your policy and following the outlined procedures is crucial.
A8: If your comprehensive car insurance policy includes an excess, this amount will be deducted from the total payout in the event of a claim. Depending on your GAP insurance policy's terms, the excess amount may or may not be covered. Some GAP insurance providers offer an additional option to cover the excess up to a specific limit. Review your policy and discuss with your provider if you're concerned about excess coverage.
A9: GAP policies may have specific exclusions or limitations, such as not covering vehicles used for commercial purposes or modified cars that do not meet manufacturer specifications. Additionally, some policies may have restrictions on the maximum claim limit or amount or policy duration. It's important to carefully read your policy's terms and conditions and discuss any concerns with your insurance provider before purchasing a policy.
By understanding these frequently asked questions and their answers, you can make better-informed decisions when it comes to purchasing GAP protection for your Mazda and ensuring you have the appropriate coverage to protect your investment.
The first place you will be offered Gap cover will probably be the motor dealer you buy your car from. This may even be the official manufacturer-endorsed 'Mazda Gap Insurance'. This 'Mazda GAP Insurance' quote is often part of the standard sales process.
With new FCA rules, the motor dealer should provide you with a price for cover, details on the product and information to let you know you can compare this policy with other providers in the market.
Alternative providers for suitable Gap cover can include specialist online brokers, like TotalLossGap, general brokers and even some motor insurers.
It is generally accepted that the policy cost you may pay for Gap cover will be cheaper from independent routes like online brokers than from the motor dealer. There are critical reasons for this.
Selecting the right GAP product for your Mazda is essential for ensuring financial protection in case of theft or a write-off. By understanding the history and current model lineup of Mazda and the various GAP insurance options available, you can make an informed decision based on your needs and preferences. Ultimately, choosing the right GAP product will provide peace of mind for Mazda owners in the UK, knowing that their investment is protected in unforeseen circumstances.
PLEASE NOTE : Gap Insurance products from Total Loss Gap are not officially endorsed by Mazda, nor available from Mazda showrooms. Any Total Loss Gap branded product can only be purchased from the official TotalLossGap.co.uk website.