Secure your vehicle with Gap Protection Insurance

The new 2023 number plate is now available. If you are thinking of buying a brand new vehicle, then it is vitally important to consider the following.

Did you know that your motor insurer will only pay the current market value of your vehicle, should it be stolen, written off following an accident or as a result of an accidental or malicious attack ?  This means that unfortunately, it’s financial value could amount to less compensation than the value for which you originally paid for the vehicle.

This could result in a difficult situation, especially if you still owe money to the finance or lease company.  And whilst the market is set up to support individuals who wish to terminate contracts early, for businesses and those who lease vehicles, it is far more difficult to claim.  This means that Limited Companies, Local Authorities, Charities and Partnerships of four or more partners, are not necessarily protected.

Gap Insurance for commercial drivers

Alternatively, by securing GAP insurance for your vehicle (cars and vans up to 3.5T GVW) you can eliminate a negative loss situation from arising and financially protect your business.

There are two types of GAP insurance available to customers:

  • Combined Purchase Price Protection and Finance GAP insurance – This policy returns you to the original vehicle invoice price or clears your outstanding finance, if the amount is higher
  • Lease GAP insurance – In the event of a write off, this policy clears outstanding lease charges and pays a contribution to the original rental deposit. It also protects the business and limits exposure to early repayment charges.

GAP Protection Insurance can be used:

  • To provide you with a temporary replacement vehicle
  • As an optional policy
  • To protect new and used, cars and small vans
  • To protect against difficult negotiations with your current insurer
  • The policy is transferrable if you decide to change your vehicle

We support businesses who use vehicles for daily activities within their business.  To find out more about obtaining GAP protection insurance and other types of vehicle insurance cover for your company cars or fleet vehicles, please contact JRW Risk Solutions.

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