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Finance GAP Insurance
Eligability – Hire Purchase, Lease Purchase, Personal contract Purchase (PCP)
Finance GAP is available for a vehicle financed under a Finance Agreement other than Contract Hire. Finance GAP insurance is available to companies and private individuals on vehicles up to eight years of age for a maximum cover period of 5 years, irrespective of when you bought the vehicle – with Finance GAP you pay for the period of cover you require.
If the vehicle is written off during the period of the Finance Agreement, without taking out Finance GAP you will be liable for any financial shortfall when settling the Finance Agreement if not fully covered by your general motor insurance policy.
Your motor insurance provider will pay out the market value of your car. If the finance settlement from your finance provider is in excess of the insurer’s offer you will be personally liable for the financial shortfall.
Example:
| Original Cost of your car: | £20,000 |
|---|---|
| Deposit: | £2,000 |
| Amount of loan: | £18,000 | One year later the car is stolen or is in an accident and declared a total loss. |
| Amount still owing to your finance company: | £12,000 |
| The insurance company pays you only: | £9,000 |
So what will you have to do?
Simple! The Vehicle owner has to pay the GAP
Finance GAP Insurance will pay the £3,000 still owing to the Finance / Contract Hire Company
Protect your investment and avoid financial worry... Buy Finance GAP Insurance online today
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Alexander Lauren Associates Ltd is
authorised and regulated by the Financial Services Authority. FSA Firm Reference No 310043
We are proud to be
Investors in People since 1999
If we are unable to settle your complaint with us, you may be able to refer your complaint to the Financial Ombudsman Service.
Further information is available at www.financial-ombudsman.org.uk