Looking to find Gap Insurance for your pride and joy? Getting Gap Insurance for any vehicle is far easier today than it was a few years ago. Traditionally, Gap Insurance was only offered by your dealer, and usually at a steep price. Now you can find any number of Gap Insurance brokers online, who can save you a good chunk from the dealer price, and often provide far superior levels of cover.
However, what if you have a high value vehicle, is the story the same? well yes and no!
Gap Insurance on vehicles of high value
Finding Gap Insurance for expensive vehicles is usually quite difficult. Why?, well your dealer may offer it, but make sure you are sitting down when he does, the prices can be eye watering!
If you take the usual route and check online, you will find many brokers may well offer cover too. However, there is a catch.
If you buy gap insurance of any kind, one thing you have to think about is your ‘claim limit’. This is the maximum amount you can claim on your Gap Insurance policy. Many Gap Insurance policies have a maximum claim limit you can opt for of £25,000.
So that is £25,000 on top of your vehicle market value to cover the orginal invoice price, with rti gap insurance, or the cost of replacing the vehicle with VRI Gap Insurance.
The problem with high value vehicles is – will £25,000 be enough over say a 4 year period?
If you buy a £60,000 car, and it loses 60% of its value in 4 years, then the ‘gap’ to the original invoice price would be £36,000.
If you factor in say a 15% rise in the cost of replacing the vehicle, the new car would be £69,000.
Your insurance payout is £24,000, the rplacment car is now £69,000, leaving a difference of £45,000!!
£25,000 claim limit is only covering half of that!!
Getting the right Gap Insurance policy claim limit
You need top find a Gap Insurance policy that can offer higher claim limits. Great news is that there are gap insurance underwriters who will offer these sorts of claim limits. One such would be AM Trust Europe Ltd, who provide policies to many prestige main dealers. They also underwrite polcies provided by leading online Gap Insurance broker EasyGap.co.uk. You can purchase policies for vehicles up to £240,000 in value, and up to £50,000 claim limits for your vehicle.
In April 2013, the owners of Easy Gap, Aequitas Automotive Ltd, announced they had extended their underwriting panel. One effect of this would be to offer more choice for owners of higher prices, prestige vehicles in the UK. Any increase in competition in this area should provide lower premium costs as well as an increasing in available cover.
So there we go, if you have a high value vehicle, be aware of the ‘claim limit’ you require, and know that you can stiil get gap insurance in the UK today!