What is Motor Gap Insurance?
Motor gap insurance is also know by the type of insurance cover offered. These are: Return to Invoice Insurance (RTI), Vehicle Replacement Gap Insurance (VRI), Back to Invoice Insurance, Total Loss Gap, Finance Gap, Shortfall Cover and Car Gap Insurance. All these types of gap insurance offer customers the opportunity to protect their new or used vehicle’s original value. In the event of an accident, motor gap insurance will pay out the deficit between the value of the vehicle when it was bought, and the depreciated insurance pay-out.
The GAP in Gap insurance stands for Guaranteed Asset Protection (GAP) insurance.
Lease/Contract Hire Insurance is a type of insurance cover designed especially for those funding their vehicle through a lease agreement, or via a contract hire agreement.
What this allows you in the event of a total loss is the ability to settle the outstanding finance amount, returning you to the same position you were in before you took out your agreement. When you lose your vehicle due to a theft or an accident, this policy covers the difference between your motor insurance pay-out, and the outstanding balance on your finance account. Considering that this would include onerous finance and interest charges, this cover wipes the slate clean.
Return to Invoice Insurance (RTI) is the perfect option for anyone purchasing a new or used car for those funding their vehicle through finance, cash, leasing or contract hire, no matter if the credit was obtained through a financial institution, or through some other agreement.
RTI pays out the difference between the post-accident or post-theft depreciated total loss amount covered by your comprehensive motor insurance package, and the original amount that you purchased the vehicle for, that is the invoice total. Basically, you do not lose any money.
Previously, you had no choice but to purchase gap insurance from the supplying dealers. Now today, with the help of the internet, more and more people are looking online for better value and for more information. These supplier’s websites offers you the unique opportunity to by-pass dealers and gain great access to lower and more affordable premiums, often they are able to offer you amazing savings for high quality gap insurance directly to you, by skipping the middle man, and providing the best online premiums.