Gap Insurance is a supplementary insurance product that runs alongside your own motor insurance and is designed to protect you if your vehicle is written off.
Gap Insurance tops up your own motor insurance valuation on the day your motorhome is written off with either, the amount necessary to take you back to the invoice price you paid (Return to Invoice), the amount necessary to be able to purchase the same standard of vehicle again, same age, mileage etc as yours was when you drove it away from the showroom (Vehicle Replacement), or the amount needed to clear any outstanding finance you may have on an agreement (Finance and Contract Hire).
It is unfortunately an inevitable fact that vehicles will depreciate over time, so as time goes on, your motorhome will start to decrease in value. It is therefore important to protect your finances as your motor insurance will only award you with the amount your motorhome is worth on the day it is written off or stolen and this amount could be thousands of pounds less than you originally paid, or it was originally worth, leaving you significantly out of pocket.
Please consider the following facts:
On average, 600,000 vehicles are written off in the United Kingdom every year.
The average vehicle can depreciate by up to 50% in the first three years.
Your comprehensive insurer will only ever pay you the market valuation of your Auto-Cruise Motorhome at the time it was written off or stolen.
Vehicle Replacement Gap Insurance is designed to protect any increase in price of your vehicle and along with your motor insurance, top up the necessary amount for you to be able to purchase your vehicle again, if your vehicle happens to be written off or stolen.
Due to depreciation, your motorhome is likely to start decreasing in value, the second you drive it away from the showroom. Your own motor insurance will only ever award you with the amount your motorhome is worth on the day it is written off or stolen and this is likely to be a significant amount less than it was worth originally. Vehicle Replacement Gap Insurance will top up this valuation with the amount necessary to be able to purchase the same motorhome again, same age, mileage, specification etc.
Lets look at an example to help with your understanding of Vehicle Replacement Gap Insurance:
Magda purchases a Swift Auto-Cruise Sundance Motorhome for £50,000.
Three years later it is unfortunately stolen.
Magda is awarded £25,000 from her motor insurer, given that this was the market value of her motorhome at the time it was written off.
Magda then finds out that the invoice price of her particular motorhome was increased by £10,000 to £60,000.
Vehicle Replacement Gap Insurance would top up the motor insurer valuation with the necessary £35,000 to be able to purchase the same motorhome again.
Magda now has the correct amount of money to be able to purchase another motorhome if she so desires or to clear any outstanding finance and to do with the remaining funds in the middle, what she sees fit.
Return to Invoice Gap Insurance runs alongside your own motor insurance and is designed to top up your motor insurance valuation with the amount necessary to take you back to the original invoice price you paid for your Auto-Cruise motorhome, in case of it being written off.
Due to depreciation, your motorhome is likely to begin decreasing in value, from the second you drive away from the showroom, with experts saying that the average vehicle would have decreased by half, by it's third birthday. Therefore, if your motorhome happens to be stolen or written off, you will only be paid by your motor insurance, the valuation of your motorhome on this day. This is exactly where Return to Invoice Gap Insurance comes in, this level of cover will simply top up this valuation with the remaining amount to take you back to your original invoice price. This leaves you with the funds to be able to purchase another vehicle if you so wish and/or clear any outstanding finance you may have.
Lets look at an example to help your understanding of Return to Invoice Gap Insurance.
Magda purchases a Swift Auto-Cruise Sundance Motorhome, for £50,000.
Three years later, her motorhome is unfortunately stolen.
Magda is given £25,000 form her own motor insurance, given that this was the amount her motorhome was valuated at on the day it was declared a total loss.
This means that Magda now has a £25,000 Shortfall from what she originally paid.
Return to Invoice Gap Insurance will top up the motor insurance valuation with £25,000, taking the amount back to the original invoice price.
Magda is now in the exact same position as she originally was, with the choice of how to spend her money, on another motorhome for example and/or clearing any outstanding finance she may have on an agreement.
Finance and Contract Hire Gap Insurance is solely designed to clear any outstanding finance you may have on an agreement, along with the valuation from your motor insurance on the day your motorhome is written off or stolen, Finance and Contract Hire Gap Insurance will simply clear the remaining balance allow you to walk away with no financial liability.
Please see the below example to help with your understanding of Finance and Contract Hire Gap Insurance:
Magda takes our a five year hire purchase agreement that involves set monthly payments.
Three years later, Magda's motorhome is unfortunately stolen.
Even after Magda's motor insurance valuation, there is still a balance of £5,600 outstanding, which without any form of Gap Insurance, Magda will have to find herself.
Finance and Contract Hire Gap Insurance will simply clear the £5,600 that is outstanding, leaving Magda with no financial liability.
Don't forget that if you can eventually own your vehicle at the end of your agreement, then you may want to explore Return to Invoice and Vehicle Replacement Gap Insurance products.
Please note that Finance and Contract Hire Gap Insurance will not reimburse any financial penalties or payments in arreas that occured before your Auto-Cruise motorhome was written off.
Please note that Finance and Contract Hire Gap Insurance will not protect a loan shortfall if the agreement is not linked to your Auto-Cruise Motorhome. For example, if it is linked to a Personal Loan or a bank.
Shortfall policies pay £250 towards the cost of your own motor insurance excess.
You are able to transfer your Shortfall policy, at any point, to any eligible vehicle, completely free of charge.
All Factory Fitted options for your Auto-Cruise are covered.
We cover the cost of paint protection for your Auto-Cruise motorhome.
We cover the cost of any non transferable warranties.
We do not limit the purchase price of your Auto-Cruise motorhome to a percentage of any guide price.
We do not have a market value clause on settlement.
You will not be charged for the change of a name, address or registration number on any Shortfall policy.
Our customer service call centre is completely based in the UK.
Our claims team are based in the UK.
All Shortfall policies are completely FCA regulated.
All Shortfall policies are backed by the Financial Services Compensation Scheme.
You have a 30 day cooling off period, during which time you are able to cancel and proving that you have not attempted to make a claim, receive a full refund.
You are able to cancel your policy at any opportunity and receive a pro rata refund, less a nominal administration fee that will be charged by the underwriters.
You can defer the start date of your Short6fall policy, at no extra charge.
We hope that by now it is apparent that Shortfall policies are amongst the most comprehensive that are available in the UK today.
AutoCruise is part of the Swift Group, which is a British manufacturer of Motorhomes, Caravans and Holiday Homes, founded in 1965. The history of the company dates back to the Smith Family, who began building their first Caravan prototype in their home garage in Hull. The Swift Group introduced its first caravan in 1965 and its first Motorhome in 1986.
Between the years of 1992 to 2007, the company acquired a range of European Motorhome/Caravan companies, including Abby, Eccles, Sprite Lesiure, AutoCruise, Bessacarr and Ace. The Swift Group is currently owned by Adam Dale Industries and has a annual turnover of around £125 million. The company currently operate in the largest single factory complex in Europe in Yorkshire. In 2015, the company will celebrate its 50th anniversary.
The current Swift Group Motorhome portfolio consists of the following successful models: Sundance, Bolero, Kon-tiki, Van Conversions, Bessacarr E400, E5Sw00 and Range. The current Swift Group Caravan portfolio consists of the following successful models: Challengher Sport, Challenger SE, Conqureror, Eccles Sport, Eccles SE, Elite. The current Swift Group Holiday Home portfolio consists of the following successful models: Soleil, Burgundy, Bordeaux, Moselle, Auvergne, Chamonix and Champagne Lodge.