What is Gap Insurance?
Gap Insurance is applicable to new or used vehicle purchases financed through Volkswagen Financial Services on monthly payments. In the event of your car being stolen, and not recovered, or written off in an accident, there could be a difference between what you paid for it or what is outstanding on your finance and the motor insurance company's settlement. This is where gap insurance could help.
Our Gap Insurance (also known as guaranteed asset protection) bridges the payment gap between the settlement amount from your motor insurer and the original purchase price of your car or the outstanding finance. So the additional worry of finding the money to purchase a replacement Volkswagen could be taken away.
We can provide you with a range of cover to choose from:
Come and talk to us for more details and prices. We can arrange gap insurance cover to meet your needs.
How does Gap Insurance work?
If, for example, you purchased a vehicle costing £12,000 and it is written off after 15 months, your motor insurer may only pay out the current market value which might be £8,000. To replace your Volkswagen with another model worth £12,000 you will need to find £4,000. However, with our return to invoice price cover we could pay you the missing £4,000.
With our outstanding finance product, the gap insurance payment would only be sufficient to cover any charges (up to a maximum of £10,000) that would need to be paid in order to fully settle your finance agreement. So, in our example the insurance company may pay out £8,000 and the gap insurance may pay £2,000.
To talk through the options which might best suit you, contact us today.