If you are looking for Commercial Gap Insurance for your van or LCV, you may be forgiven for wondering what your choices are.
Gap Insurance for commercial vehicles used to be restricted to Contract Hire Gap Insurance to cover any shortfall on your lease settlement. In fact this was traditionally the only level of commercial gap insurance available for many years. However, times have changed!
Choices for Commercial Gap Insurance
These days the choice for commercial gap insurance is much wider and comprehensive. Lets start with the basic cover:
Finance Gap Insurance – to cover the shortfall between your vehicle market value, and the outstanding finance settlement. This simply means you can pay off the finance and walk away with nothing further to pay.
Lease or Contract Hire Gap Insurance – similar to finance gap, will pay the shortfall between the market value of your vehicle, and the outstanding settlement on the contract hire or lease agreement.
Now for more comprehensive levels of Commercial Gap Insurance cover:
Return to Invoice Gap Insurance – to cover the difference between the vehicle market value, and the original invoice price you paid. The advantage of this type of cover is it can help if you paid cash for the vehicle, or paid a deposit on finance, which you could lose with simple finance gap insurance.
Vehicle Replacement Gap Insurance – will cover the difference between your vehicle market value, and the cost of replacing the vehicle with a model equivalent to the one you bought the policy for. So even if the price is higher than the original price you paid, you can get enough to replace the vehicle on a ‘new for old’ basis. This type of commercial gap insurance is quite rare, however it can be sourced through a specialst online broker in the UK.
So there you have it, a brief rundown on commercial gap insurance in the UK today!