Mind the Gap!
Accidents Happen – Be Insured and Be Assured
From as little as £99 ONE OFF PAYMENT
What if, your car is declared a write-off due to an accident, fire or theft?
Now imagine discovering that your insurance company pay-out will not match the outstanding finance amount (i.e. the settlement figure). Insurance typically pays the vehicle’s actual cash value rather than the amount remaining on your loan or lease, which could leave a financial ‘GAP’ of thousands of pounds.
This is a scenario faced by many motorists today. Even if you are not liable, you are almost certain to find a shortfall between the amount you receive from your motor insurance provider and the outstanding finance. And this shortfall could be a significant sum depending on the rate of depreciation of the vehicle.
Who will protect you against this financial loss?
For peace of mind and for the protection of your vehicle needs, consider the cover GAP can offer.
Option 1 – Finance Guaranteed Asset Protection – GAP Insurance Prices from £99.00*
If within the period of your contract an incident occurs which results in the insured vehicle being classed as a Total Loss by your Motor Insurance Policy underwriter, GAP Insurance would cover any financial shortfall between the amount you receive from your Motor Insurance policy and the amount required to settle your finance agreement.
Option 2 – Lease Guaranteed Asset Protection – Lease GAP Prices from £175.00* – All the benefits of option 1 plus the following key features:
- Covers initial rental up to a maximum of £2,500 Inc VAT, Vehicle rental value up to £750 + Vat (£900.00 inc VAT) (This will not be covered under your car insurance)
- £250 contribution towards your insurance policy excess.
- Covers up to £1,500 of manufacturer approved dealer fit accessories.
- How Lease Asset Protection works
- You pay £500 per month for your vehicle. Your vehicle is written off. Your motor insurance company pay-out is £6,000. The contract hire or leasing company will require an early settlement payment of £8,500.
- Lease GAP will top up the insurance pay-out to the early settlement amount. PLUS you will receive a contribution equal to three months payments as a deposit on a new lease agreement (max £2,500)
Freedom Vehicle Contracts Limited guarantee to match or beat any like for like quote (Copy of written quote will be required)*.
*subject to the limits set out in the policy document.
- Designed to provide financial protection if you have taken out a finance
agreement to fund the lease of your car.
- GAP policy will pay the difference between the amount paid out by the motor
insurance provider and any outstanding finance on their car.
- Meets the ABI code of practice.
How GAP Works?
Let’s say you paid £18,500 for your car and your car is unfortunately involved in an accident and your motor insurance providers declare it a total loss. Using current market conditions the motor insurance provider values your car at the time of the accident as £12,000. However, you still owe the Finance Company £15,000. The GAP insurance may pay out the £3,000 difference – it’s as simple as that!
What is the claims process?
- To make a claim, call within 30 days of a total loss. We’ll advise you what needs to be done to get your claim settled as quickly as possible.
- We will send a claims pack to you and once complete you can return it by post or email, whichever you find most convenient. The sooner we get your information, the sooner we will process your claim.
- Once we have your completed claims pack, you should allow 7 working days for all information to be reviewed and the vehicle to be valued.
- The completed claims pack is sent to our underwriters for approval and once approved, settlement will be sent in writing to you.
- Once we have received your acceptance for the settlement amount, payment will be with you in 10 working days.
How long will the claims process take?
14-21 working days on receipt of a fully completed claims pack.
Do you deal directly with my insurance company?
As it’s your contract of insurance, you will have to handle negotiations with them. We support you in this by fully advising you of the correct valuation of your vehicle and ensuring you get a fair deal. If you give us your consent, we’re more than happy to fully explain valuations to you insurer.
What should I do when my insurance company make me an offer?
DO NOT accept it. Vehicles can be undervalued and it’s important you allow us to fully value the vehicle on your behalf. We value all vehicles using Glass’s Guide retail (known in the trade as the ‘industry bible’) which is a stable reference tool to price used cars.
Can you accept copied documents or does it need to be originals?
All documents can be copies.
My car has been in an accident but the other party’s insurance is paying. Can I still claim?
Yes. The third party will have to provide the write off proof, all of the other details will be the same.
Can I transfer my policy?
The policy only applies to you and is not transferable to any other person or business. However, it may be transferred to another vehicle as long as the vehicle you replace it with comes within the price range specified in your schedule, subject to the terms and conditions of your policy and on payment of the administration fee.
Can I cancel my policy?
We’re confident that you’ll want to continue these policy benefits for the entire term of the agreement. However, we understand that circumstances may change, therefore, providing a claim has not been made, it is possible to transfer the policy to a replacement vehicle or cancel your insurance at any point. You may be entitled to a pro-rata refund on the remainder of the policy calculated monthly for each full month left to run subject to the terms and conditions.