Have you got a LCV, Van or pick up? Perhaps your vehicle is leased for your business, and is essential for you to ‘make a living’. In many ways commercial vehicles are even more important to their owners than a car may be to a family. Take a van off a plumber, or a courier, and their ability to keep their business running becomes all the harder.
Of course many people look to Gap Insurance to protect their financial investment in their vehicle. This is also available to owners of commercial vehicles also, who may be even more financially dependent on their van.
For those who secure there Commercial Vehicle by way of a lease, then a Finance and Contract Hire Gap policy can cover any shortfall between your motor insurers payout, and the outstanding finance settlement. This is particularly popular on contract hire style agreements, whereby any shortfall must be paid by the leaseholder for outstanding lease rentals.
Of course there are also commercial vehicles that are secured by traditional hire purchase style agreements, or even where the purchaser has paid cash. Here the owner could look at a range of Gap products, including Finance Gap, Return to Invoice and Vehicle Replacement Gap.
Care should be taken to ensure that the vehicle use is permissible for the Gap cover you compare. Some Gap products do not allow for ‘hire and reward’ work, such as courier business’, however plenty do. Be sure to check the terms you are looking at carefully.
Like any Gap Insurance product, when you buy can Gap Insurance for your commercial van can only be used in the event that the vehicle is deemed a ‘total loss’ by your insurer. This is usually after an accident, or perhaps a theft. Gap Insurance is not a legal requirement on any vehicle, but perhaps when your business depends on it