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How are Claims Calculated?

How claims are calculated will depend on the level of cover that you have. Each claim will be calculated in accordance with your policy documents. The only difference is that if there is no finance outstanding then all of the funds will come directly back to you.

Why not look at our quick summary or contact a member of the team on 0151 647 7556.

 

Example Calculations for Gap Insurance Claims

Combined Return to Invoice will pay the difference between your insurance companies settlement and the higher of either the amount outstanding on finance or the original invoice price you paid.

E.g. (For illustration purposes only) 

You buy a car and pay £27895

You are paying for the car on Personal Contract Purchase (PCP)

Two years later, the car is stolen.

Your insurance company offer you £15895

You have £12800 outstanding on finance.

Between your two insurance companies, you would receive £27895

From this, the finance of £12800 is cleared 

The balance of £15095 is sent back to you for you to spend as you see fit.

Please remember that our policies give cash settlements, and we never source or insist on replacement vehicles. We think this is important as it means you decide where, when and on what your money is spent.

Combined Vehicle Replacement will pay the difference between your insurance companies settlement and the higher of either the amount outstanding on finance, the original invoice price you paid, or the replacement cost of another vehicle the same as yours was on the 1st day you drove your car home.

E.g. (For illustration purposes only) 

You buy a car and pay £27895

You are paying for the car on Personal Contract Purchase (PCP)

Two years later, the car is stolen.

Your insurance company offer you £15895

You have £12800 outstanding on finance.

To buy another car the same as yours was on the 1st day you drove your vehicle home is now £30235

Between your two insurance companies, you would receive £30235

From this, the finance of £12800 is cleared. 

The balance of £17435 is sent back to you to spend as you see fit.

Contract Hire Gap Insurance will pay the difference between your insurance companies settlement and the amount outstanding on your contract or lease hire agreement.

E.g. (For illustration purposes only) 

You lease a car which has a P11d value of £27895

You are paying for the car on Contract Hire. 

You pay £295.16 per month.

Your contract is for three years.

Two years later, the car is stolen.

Your insurance company offer you £15895

Your lease company inform you that your settlement figure is £19489.62

Your gap insurance policy would pay £3594.62 to settle your finance. 

On the understanding that you are up to date with your lease/contract hire payments. You can walk away from your old finance agreement without further financial obligations and not be left to pay for something you no longer have.