Featured within the Which? Report on Gap Insurance.
Protected by the Financial Services Compensation Scheme.
Unlike your home, which we all hope will appreciate in value over time, vehicles are depreciating assets. This means that over time we expect them to be worth less than we paid. Most vehicles with very few exceptions will lose value the moment that you have driven it away from your dealership. In fact some vehicles can be worth less than fifty percent of the original price you paid before its third birthday.
For example lets look at one of the nations favourite vehicles and one which has appeared in the top ten best sellers for many years; a Ford Fiesta. According to What Car if you have purchased a Ford Fiesta 1.25 60 BHP Style 5 door you will have been charged £12,295. By the end of year one the value of your car will have dropped to an estimated £7,075. By year four it is predicted to be worth just £4,000.
This means that if your Ford Fiesta is written off and you do not have any level of gap insurance then without having to use your savings or commit to additional financial commitments the only amount that you will have to be able to replace your vehicle and or clear any finance is the market value your insurance company offers you.
Based on the figures above this could mean a potential loss of £8,295 in just four years. That equates to £2,073 per year and £172.81 per month. Please also remember that the What Car figures were based on average usage and average mileage. So this potential loss could be even higher.
Total Loss Gap Insurance can help. We cannot stop your vehicle from being stolen and equally we cannot stop you being involved in an accident. Also no matter how hard we try we cannot lose sight of the fact that which ever way your vehicle was written off it can be very traumatic, stressful and upsetting. Instead we can make sure that rather than you having to shoulder the cost yourself, your policy would cover you to the higher of either the amount outstanding on finance, the invoice price you paid or the replacement cost.
Total loss cannot turn the clock back and as discussed we cannot stop "bad" things from happening but in most cases for less than the cost of a months depreciation you can have the additional peace of mind in knowing that should the unexpected ever happen at least the financial worry is taken away.
Your policy is fully FCA regulated and backed by the Financial Services Compensation Scheme.
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