If you are thinking about replacing your vehicle in the near future, please bear in mind that you do not have to buy this cover from the garage you are buying your car from.
Please consider these facts
- Nearly half a million cars are written off by motor insurance companies every year as a result of accidents, theft and fire.
- More than 200 vehicles are involved in serious accidents in the UK each day.
- One third of stolen cars are never recovered.
- A car is stolen every 90 seconds in the UK.
Something that is just as scary is that if your car is written off, the settlement value from your motor insurance company may be insufficient to buy a replacement vehicle, or may leave you owing money to the finance company for a vehicle which has already been written off.
There are 2 main levels of cover, Return to Invoice and Financial Shortfall, these are summarised as follows.
Return to Invoice Protection - 3 year Policy
Return to Invoice will cover the difference between your motor insurance settlement and the invoice value of the vehicle at the start of the agreement, meaning the original vehicle price is received in full. If the vehicle is financed, this payment can be used to settle the outstanding amount owed with the remaining balance towards a replacement.
An example of this would be if you purchased a vehicle for £15,000, 2 years later your car is stolen and declared a total loss, your insurance company pay out £10,000. This policy would pay the balance of £5,000 making the total payout £15,000.
Financial Shortfall Cover - 3,4 or 5 years
Financial Shortfall will cover the difference between your motor insurance settlement and any outstanding finance payments, clearing the liability for a new agreement to be taken out on a replacement vehicle.
An example of this would be if you purchased a car for £15,000, 2 years later your car is stolen and declared a total loss, your insurance company pay out £10,000, You have purchased the vehicle on finance and there is an amount of £12,000 outstanding on the agreement. This policy would pay the difference of £2,000, clearing the finance allowing you to purchase another vehicle.
If you would like some further information regarding this, please click on the Call Me button and we will contact you.