PROTECT YOUR ASSET WITH KMC
Gap Insurance
Over half a million cars are stolen each year of which most subject to a total loss claim with insurance companies. Factor in the amount off traffic accidents which occur every year and you can see how the odds can be stack against you. GAP insurance policies are a method of protecting yourself against possible financial exposure in the event of any total loss claim being made. When an insurance company pays out a claim this may not necessarily cover your total financial exposure or put you back in the same financial position you were originally in. There are two types of GAP insurance and this is how they work;
Finance Gap Insurance
Available when you purchase a vehicle using Hire Purchase, Lease Purchase or Personal Contract Purchase.
Finance GAP insurance is available to private individuals and companies when a vehicle is purchased using any of the above methods of funding. Finance GAP is available on cars, vans, bikes and motorhomes through KMC provided the vehicle has been purchased and funded within the last 2mths.
Example;
| Original Price Of Your Car |
£14995.00 |
| Your Finance Original Finance Balance |
£14000.00 |
After 6 months your vehicle is involved in an accident, your insurance company decide to write your vehicle off and make you a final offer of £9500 which they say current market value for the vehicle. But you still owe £13000 on your finance agreement which means you have a shortfall to make up to clear the finance commitment on a vehicle you no longer have. This is where the GAP policy steps in and pays the difference between the insurance company payout and the finance settlement, hence ‘filling the gap’.
Example;
| Insurance Company Pay Out |
£9500.00 |
| Finance Settlement Figure |
£13000.00 |
| GAP Insurance Pay Out |
£3500.00 |
| You Owe |
£0.00 |
Return To Invoice (RTI) GAP
Available when you purchase a vehicle outright or with a substantial deposit on a finance agreement.
Return to invoice GAP insurance is available to private individuals and companies when a vehicle is purchased outright or financed with a substantial deposit which would make it doubtful that the vehicle would ever be in a negative equity position in the event of a total loss payout during the life of any finance agreement taken against it; i.e. finance taken with a 50% deposit over 24mths. Return to invoice GAP is available on cars, vans, bikes and motorhomes through KMC provided the vehicle has been purchased and funded within the last 2mths.
Example;
| Original Invoice Price Of Your Vehicle |
£14995.00 (Purchased Outright) |
Your vehicle is subject to a total loss claim 18 months after purchasing it and your insurance company pay out £10000.00 as full settlement due to current market value. The return to invoice GAP policy will payout to you £4995 so you have had the full invoice purchase price back putting you in the same financial position you were in at the time you purchased the vehicle.
| Cash Price Paid |
£14995.00 |
| Insurance Company Pay Out |
£10000.00 |
| RTI GAP Pay Out |
£4995.00 |
| Your Total Loss |
£0.00 |
So What’s The Cost?
Both GAP policies vary in price depending on the value of the asset and the term of protection required. However the cost is a fraction of the personal cost you could suffer in the unfortunate event that your vehicle is subject to a total loss payout by an insurance company. GAP insurance can be paid for in different ways these being credit/debit card cheque payment, on a 12 monthly direct debit scheme (subject to status) or added to your finance balance (subject to status).
If you wish to apply for a GAP insurance product or speak to one of our sales team for further assistance please click the contact link below and we will contact you back as soon as possible.
CONTACT
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