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 are underwritten by an 'A' rated insurer in AM Trust International Ltd, one of the largest insurers in the market. 

If you are looking for real 'value for money' protection 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 can Finance Gap Insurance do for you?

Finance Gap Insurance will, pay the difference between your insurance companies settlement and your outstanding finance settlement.

Finance Gap Insurance is the most basic level of Gap Insurance. It is also the easiest to understand. in brief your policy will enable you to walk away with no financial liability to your old vehicle. 

Who would consider a Finance Gap on their vehicle? Perhaps a customer who has a form of lease or contract hire or their only concern is to ensure that the finance agreement is paid off. 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 example you have just bought a BMW 3 Series Coupe Se 2 Door. According to What Car you will of paid in the region of £27005. You part exchanged your old car and financed the balance. This means that you borrowed £21750 over 5 years. 2 years later and you are involved in an accident. Thankfully no-one was hurt but your insurance company evaluate your car and decide to write it off. They offer you 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 now left the the terrible position of having to pay for a car you no longer have.  You could use your savings, you could even re-finance the balance, neither 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. 
Finance Gap Insurance may be one of the most basic levels of protection but it still has a host of features. 

Any insurance policy is only ever as good as the claims procedure. No amount of marketing, pretty pictures or changes that fact it is what you policy does for you when you need to make a claim that makes all the difference and this is exactly where we know our expertise and knowledge makes all the difference. Our policies have been designed with you in mind. We made a conscious decision to ensure that our policies where not only easy to understand but also had as many customer friendly features as possible. 

We have worked with our administrators to try where ever possible to ensure that our policies have the fewest exclusions. For example allow us to liaise directly with your insurance company before you accept their settlement and we will pay from their settlement figure regardless of book or market values.  For tried and tested policies, backed by the FSCS and at guaranteed some of the lowest if not the lowest prices in the UK it has to be Easy Gap.

Should you buy Finance Gap Insurance?

Depending on the type of finance you have and how much deposit you paid  finance gap Insurance could be the best and most suitable level of cover.

Did you buy your vehicle on finance with a small deposit then you need to consider Finance Gap Insurance.
Perhaps your vehicle on lease or contract hire then you need to consider finance gap insurance (payments are plus VAT).
Taken a large amount of finance over a long period of time then you need to consider finance gap insurance.

Please remember that depending upon how you financed your vehicle, if it was written off during the agreement you may owe more than your vehicle is worth and without any level of cover you could be left with no transport and having to pay for a vehicle you no longer have.

Lets look at what happens when you make a finance gap insurance claim, so lets imagine you have just bought  a new/ nearly new Ford Focus and you paid £16,080 with a £1,000 deposit.
You Borrow £15,080
You buy Finance Gap Insurance with a £5,000 claim limit
In 12 months time the vehicle is written off. Glass Guide retail is £10,350

Wait!!! You still owe £12,800.

Finance Gap Insurance would pay the difference between your comprehensive motor insurance settlement and the amount of finance you have outstanding on the vehicle. In this example it is £2,200. 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.

Why Easy Gap can help you with Finance Gap Insurance?