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Vehicle Replacement Gap Insurance for Mitsubishi?

If you have bought your Mitsubishi from a motor dealer, it is more than likely that they have offered you Return to Invoice Gap Insurance, whilst this is a great deal of cover, it may not be the best option for you and your Mitsubishi.

Return to Invoice will literally only ever return the amount of money you paid for your Mitsubishi, whatever the price may be an while the thought of getting the purchase price back may sound perfect you may not have considered that this alone may not be enough.

Let us explain further, a Mitsubishi Colt Hatchback bought for £9,505, will, based on what car November 2012 depreciation figures will have decreased in value to £5,555 within it's first year. With Return to Invoice, if your accident was just after a year, your motor insurance company would reimburse the £5,555 and your Gap Insurance the difference, so you are walking away with your full amount (excluding the Road fund License that you can claim back from DVLA).

What you may not have taken into consideration is however, new and nearly new car prices also increase. so to purchase the same model again is more than likely going cost you more. Based on a 4% nominal increase this could be £9,885.20 in just a few years time and realistically this is likely to be even more. This means that even getting all your money back will still leave a shortfall.

Vehicle Replacement Gap Insurance can help.

Combined with your motor insurance, you will be given the amount that the same standard of vehicle, with the same age and mileage etc as yours originally was on the day that you first drove it home from your dealership even if the price has gone up. If that model is no longer available then settlement is based on the superseding model.

This means that you are able to purchase your exact same model again, or another vehicle of the same standard of which you so wish. As we never find a car for you and instead always pay the cash equivalent you are in control about where, how, on what and when your money is spent.

With 600,000 cars being written off in the UK each year and crime on the rise, it is  wise to be protected with Vehicle Replacement Gap insurance ensuring that you could have the exact same vehicle if something is to happen to your own.

With vehicle replacement for your Mitsubishi from as little as £39.00 inclusive of insurance premium  tax for a years protection why not click or call and explore your options.

It is most likely that a Mitsubishi dealership will offer you the most common form of gap insurance policy in the return to invoice form.

The dealership quote you would have also been given would have been somewhere in the region of £395.00.

So what is return to invoice gap insurance and what can it do to protect your Mitsubishi.

Immediately after purchasing your Mitsubishi, like any other vehicle and manufacturer type is more than likely to begin to depreciate in market value and if it were to be written off or stolen, then your motor company is only ever legally obliged to pay out the market value of your Mitsubishi on the day it was written off.

Experts in the motor trade industry estimate that the average vehicle can lose up to 50% of its market value within the first three years potentially leaving you financially devastated with a loss of thousands of pounds.

A return to invoice gap insurance policy however, would be the solution to the financial gap as the policy would pay the difference between the valuation of your Mitsubishi on the day it was written off and the original invoice price you paid for the vehicle. This means that, between your comprehensive insurance and your gap insurance return to invoice policy you would be reimbursed the full purchase price you paid for the vehicle. This gives you the ability to clear any outstanding finance if any and the balance,  deposit and equity is yours.

Please note that this excludes your road fund which you are eligible to claim back from your nearest DVLA office.

If by chance you have purchased a brand new Mitsubishi Lancer or a brand new L200 Warrior or perhaps an Outlander it will depreciate and drain away a significant amount of capital as the market value of your car drops. Whilst no individual or organisation can accurately predict how much your car will be worth in a number of years to come. Figures taken from What Car November 2012 can predict based values on current and previous depreciation rates and give a vaguely accurate prediction on your Mitsubishi may be worth in the future.

For Example

The new L200 Warrior which you can purchase today from a price of £18,999, within the first year of purchase the market value of the car deteriorate dramatically to somewhere in the region of 11,252 potentially leaving you out of pocket of nearly £7,000.

With a quote for your Mitsubishi now starting from £39.00 inclusive of insurance premium tax for one years return to invoice policy potentially saving you thousands, is it really worth the risk so call and click today for your quick and easy purchase of a policy to cover and protect you today.

What can Finance and Contract Hire Gap Insurance for Mitsubishi do for you? 

Lets look at a real life example for illustration purposes lets say that you have a Mitsubishi Colt Hatchback, you have paid for your car using a form of finance linked directly to your car or contract hire.

When you bought your Mitsubishi you paid £9,505 however, if someone told you that in just a couple of years your car is estimated to only be worth £5,555, would you believe them?

No! Well you re not alone, not many people do believe that their vehicles are going to depreciate, especially not quickly, but based on recent statistics it is proven that the average vehicle actually loses 50% of it's value within the first three years of ownership.

Another fact members of the public tend to not believe is that they will be involved in an accident or that they will be the subject of Vehicle theft. 

Did you know that there are actually 600,000 cars written off in the UK each year

Did you also know that you own motor insurance company is only legally obliged to pay you what you Mitsubishi is worth on the day it is written off. When you combine the fact that you car is losing value and what you may be offered in settlement it is easy to see just how problems can arise as your own motor insurance can and often does offer hundreds if not thousands of pounds less than you originally paid. 

Don't forget that just because your Mitsubishi has been written off your finance or contract hire company will unfortunately still need to be paid and without any form of gap insurance you are financially liable. 

This applies to business owners who have Mitsubishi funded via Contract Hire or lease also, even personal users of contract hire, finance companies can not simply write the loss off and do not forget about outstanding amounts overnight. They may call it something completely different however it is in principle exactly the same as it is a financial amount that you are liable for over and above your Mitsubishi's market value on the day it was written off.

This is exactly where contract hire gap insurance can help as it simply pays the difference between your Mitsubishi's valuation on the day it was written off and clears your financial liability.

With Finance and Contract Hire Gap insurance for your Mitsubishi, you can rest assured that if you do find yourself in a situation such as this and you can focus on the important things like getting better or getting over the shock of having your car stolen instead of the financial consequences.

With finance gap insurance form as little as 39.00 inclusive of insurance premium tax why not click or contact a member of the team and talk about your Mitsubishi and how easy and cheap gap insurance really can be.

EasyGap's following products: Vehicle Replacement Gap Insurance, Return to Invoice Gap Insurance and Finance and Contract Hire Gap Insurance has been independently assessed and rated by financial research company Defaqto as 5 Star.