Finance Gap Insurance
Why should you buy finance gap insurance and what can it do for you?
Finance Gap Insurance can provide protection between the value of your vehicle and the amount you have outstanding on a finance agreement or lease.
Policies underwritten by a UK based specialist underwriter UK General on behalf of Ageas Insurance, one of the largest insurers in the UK.
If you are looking for real 'value for money' protection, do then why not click for an instant Finance Gap Insurance quotation and cover.
Simply click and our automated system will walk you through and you can buy finance gap insurance online in complete security.
What is Finance Gap Insurance?
Finance Guaranteed Asset Protection ( Finance gap insurance ) is the oldest form of Gap Insurance ,and in certain circumstances, we think still the best. In brief Finance Gap Insurance can pay the difference between your vehicles valuation when it is written off, and the amount you still have outstanding on finance.
This can be a good form of Gap Insurance to consider if you have
- You have purchased you vehicle on finance with no deposit you need to consider Finance Gap Insurance
- You have purchased your vehicle with a small deposit you need to consider Finance Gap Insurance
- Purchased your vehicle on lease hire you need to consider finance gap insurance ( payments are plus VAT )
- Purchased your vehicle on contract hire you need to consider Contract Hire Gap Insurance ( payments are plus VAT)
- Taken a large amount of finance over a long period of time you need to consider finance gap insurance
Don't forget depending upon how you financed your vehicle if it was written off during the agreement you may owe more than your vehicle is worth. Please remember that every vehicle loses money, but some devalue quicker than others. So in some cases this 'Gap' can be substantial. Let me try and explain, for illustration purposes we have taken one of the most popular cars sold in the UK at present, the prices have been taken from Glass Guide Retail.
- You have bought a new/ nearly Ford Focus you paid £16080
- Less Deposit £1000
- You Borrow £15080
- You buy Finance Gap Insurance with a £5000 claim limit
- In 12 months time the vehicle is written off. Glass Guide retail is £10350
- You get a good settlement £10600
Wait !!! You still owe £12800.
Finance Gap Insurance would pay the difference between . In this example it is £2200. In the case of contract hire this can be even more as the finance company will have set your payment based on what they thought the car to be worth at the end of the agreement. Either way if you have chosen a realistic claim limit you can walk away and find another vehicle.
Without finance gap insurance you are left without a vehicle which you still have to pay for. Even worse you may have to re-finance the difference. With prices for finance gap insurance from £39 can you afford not to protect your investment, so why not click for an instant quote and cover. As with any insurance policy it will come with some exclusions. Most importantly you need to check that your vehicle qualifies and that you have fully comprehensive insurance.
You can buy finance gap insurance for cars, vans, motor homes, motorbikes and we even have specialist cover for driving schools and private hire taxi's.
Why Finance Gap Insurance from EasyGap.co.uk?
EasyGap.co.uk, owned by Aequitas Automotive Ltd, are registered with the Financial Services Authority (registration number 541186). Aequitas Automotive Ltd are also members of the British Insurance Brokers Association (BIBA 006652), and a registered Data Controller with the Information Commissioners Office (ICO Z2455374).
All policies are fully FSA regulated, and backed by the Financial Services Compensation Scheme (FSCS)
If you need help, have Finance Gap Insurance questions or would simply like to arrange Finance Gap Insurance cover by telephone why not call us on our free phone number 0800 195 4926, we will be only to happy to help. No jargon plain English we promise!
You will be pleased to know that we do not operate any vouchers, or discount codes Instead we want each and every customer to get our very best price first time every time. No gimmicks just honest, reliable policy features at fantastic prices for everyone every time. We are so confident in our prices that we also guarantee to beat any like for like quotation.
Please remember at EasyGap Cheap / Low cost Finance gap insurance does not mean a dilution of cover, security , peace of mind or back up it just means better value for money ! So why not click or call a member of the team and explore your finance gap insurance options.
Finance Gap Insurance is the oldest and some say still the best form of Gap Insurance. We think that this is possibly because it is the easiest form of gap insurance to understand.
Finance Gap Insurance will cover, if your vehicle is written off, the difference between your vehicle valuation on the day it is written off and the outstanding finance settlement
This means that you can walk away with no financial liability to your old vehicle.
Please remember that your Finance Gap Insurance policy will not be able to cover any additional charges for late payments or arrears. The types of agreements that can be covered include Hire Purchase, Personal Contract Purchase, Lease Purchase and Contract Hire.
Finance Gap cannot protect a loan shortfall if the agreement is not linked to the vehicle, ie a Bank or Personal Loan.
Who would consider a Finance Gap on their vehicle? Perhaps a customer who has a form of lease and the only concern is to ensure that the finance agreement is paid off. Those who place a small deposit on their agreement may have this view, and certainly when the amount financed is quite close to the purchase price then there is a better chance that a 'shortfall' can occur.
That said there is always a flip side so while you are walking away with no financial liability to your old vehicle you are also walking away from any of the equity and deposit you have. In fact if you have paid for your vehicle with a large deposit you may want to explore Combined Return to Invoice Gap Insurance as well as Vehicle Replacement Insurance.
What can Finance Gap Insurance do for you?
For illustration purposes lets say that you have just bought a BMW 3 Series Coupe Se 2 Door. Which according to What Car you will of paid in the region of £27005.
Like most of us today you did not have a spare £20000 or so in the bank so you part exchanged your old car and financed the balance.This means that you borrowed £21750 over 5 years.
All is well until 2 years later and you are involved in an accident. it was no your fault and thankfully no-one was hurt but your insurance company access your car and decide to write it off.
Your own insurance company offer your the value of your BMW on the day it was written off which again according to What Car would be in the region of £15825.
Your finance company while having every sympathy still have to be paid and send you a settlement for £18295, this means that you owe £2470 more than your BMW was worth.
Without any form of finance gap insurance you are not left the the horrendous position of having no car and having to pay for a car you no longer have. You could use your savings, you could even re-finance the balance, either of which are no ideal situations to be in.
This is exactly where finance gap insurance can help as in this example you would now be paid the difference of the £2470 leaving you free look for another vehicle.
Don't forget our finance gap insurance also pays £250 towards tour own motor insurance excess as well, so why not click or call and speak to a member of the team about your finance gap insurance options.
In fact our finance gap insurance policies have many more features so you will be pleased to know that
We pay £250 towards your own motor insurance excess
All policies are underwritten by Ageas Insurance, one of the biggest insurers in the UK
All finance gap insurance policies are backed by the Financial Services Compensation Scheme
All policies come with free accident management
Policies cover the cost of all factory fitted options
Policies cover the cost of up to £1500 worth of dealer fitted options
Finance Gap Insurance with a 30 day cooling off period
Policies are cancelable with a pro rata refund
Written into each finance gap insurance policy terms is a commitment to pay within 14 days of your own motor insurance company.
In fact when you buy finance gap insurance from Easy Gap you also have all the back up and support of the Aequitas Team, so why not click or call and explore your finance gap insurance options.
At Easy Gap we would always want all of our many happy customers and Website visitors to be able to explore their Finance Gap insurance options and compare levels of cover so that they can make real informed choices.
So please feel free to browse our Website or call a member of the team on 0800 195 4926. Our lines our open Monday to Friday 9am-7pm and Saturday 10am - 4pm.
No matter if you want to buy gap insurance for your company car, your business van or your motor home or motor bike we are here to help every step of the way from the purchase of your policy to claim we are only ever a click or a call away.