Driving School Gap Insurance will protect you if the vehicle you use for your Driving School is written off or stolen.
If in the unfortunate case your Driving School vehicle is written off or stolen, your comprehensive insurer will only pay you the market value of your vehicle at the time it was written off or stolen.
This may leave you with a significant financial Shortfall.
Industry experts argue that the average vehicle will lose up to 50% of its original value in the first three years.
Driving School Gap Insurance will pay you this financial Shortfall which can then be used in a number of ways for example, to pay off any remaining finance you may be responsible for, to purchase another vehicle, or if you so wish, to pay for a cruise around the Caribbean.
We at Shortfall.co.uk stress the importance of Gap Insurance for any type of vehicle, however, we go that extra bit further to stress the importance of Driving School Gap Insurance.
This is because vehicles that are used for Driving School purposes are ultimately, a source of income.
If you are a driving instructor and your vehicle is written off or stolen, you are no longer able to teach students and thus no longer to earn an income.
This as we all know can have a significant impact on finances.
Driving School Vehicle Replacement Gap Insurance is designed to protect you, the driving instructor against any increase in the invoice price of the vehicle you use for your Driving School.
If in the unfortunate case your Driving School vehicle is written off, Vehicle Replacement Gap Insurance will pay you the difference between the market value of your vehicle at the time it was written off or stolen and the amount you now need to purchase another vehicle of the same age, mileage and conditions as your vehicle originally was when you first drove it out of the show room.
The invoice price of your Driving School vehicle is likely to increase during the period of your ownership for a number of reasons, such as: an increase in VAT, labour, raw materials or most commonly, if the manufacturer introduces an upgraded version of your model and thus disbands your model.
If the original model cannot be replaced, you will be provided with the relevant funds to purchase another vehicle of the same age, milage and condition as your vehicle was at the time of purchase.
Please see the example below which we have designed to assist you with your understanding:
* Bruno purchases a Honda Civic for £10,000 for the purpose of his new Driving School
* Three years later, while out with a student, the Honda Civic is involved in a motoring accident and is consequently written off
* Bruno contacts his comprehensive insurer who inform him that they will pay £5,000 as a settlement payment
* This means that Bruno has a Shortfall of £5,000
* Bruno is also informed by the local Toyota dealership that the an upgraded version of the Honda Civic has been introduced which has consequently disbanded Bruno's original model
* The invoice price of this upgraded Honda Civic is £12,500
* This means, for Tony to purchase the Honda Civic, and to get back out on the road teaching, he needs a total of £7,500
Driving School Vehicle Replacement will pay this £7,500 Shortfall and place Tony in a position where he can purchase the upgraded Honda Civic and get back to earning an income.
Driving School Return to Invoice is designed to return you, the driving instructor to the original invoice paid you paid the Driving School vehicle, if in the unfortunate the vehicle is written off or stolen.
If in the unfortunate case your Driving School vehicle is written off or stolen, you will only be paid the market value of your Driving School by your comprehensive insurer.
Taking into account depreciation rates, this can be significantly less that what you originally paid.
Industry experts say that the average vehicle will lose up to 50% of its value in the first three years.
This will mean that you are unable to pay off any remaining balance you may have on your finance agreement or to purchase another vehicle.
Please see the example below we have designed to assist your understanding:
* Tony purchases a Toyota Yaris for £15,000 to use for his Driving School
* Three years later, as a result of a mistake by a driving student, his Toyota Yaris is written off
* Tony wants to waste no time, as he needs the relevant funds to purchase another vehicle and get back to teaching students and to earn an income
* Tony contacts his comprehensive insurer who inform him that they will pay a settlement payment of £7,500
* Please note the significant depreciation the Toyota Yaris has undergone
* This means that Tony has a £7,500 Shortfall
Driving School Return to Invoice Gap Insurance will pay Tony this outstanding £7,500 Shortfall and place him in the position where he can pay off any remaining balance on his finance agreement or purchase another vehicle if he so wishes.
Driving School Finance Gap Insurance is designed to protect you, the driving instructor against the financial agreement you have taken out in order to purchase the vehicle which you use for the Driving School.
If in the unfortunate case your Driving School vehicle is written off, you may be still liable to pay off the remaining balance of your finance agreement. In fact we have dealt with customers who have been asked to pay off up to 85% of the outstanding balance.
We at Shortfall.co.uk are fully aware that this can have devastating consequences.
In addition to not just having a vehicle to teach students and to earn an income, you are expected to pay this significant outstanding balance.
Please see the example we have designed below in order to assist you with your understanding:
* Douglas takes out a four year finance agreement out to purchase his Ford Mondeo
* The finance agreement consists of set monthly payments of £200
* Two years later, as a result of a motoring accident, the Ford Mondeo is written off
* Douglas has already paid two years of her finance agreement, which totals £4,800
* This means that Douglas may still be liable for the remaining £4,800
Driving School Finance Gap Insurance will pay this £4,800 and place Douglas in a position where he can walk away from the finance agreement a free man without any financial liabilties.