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Why should you think about buying Gap Insurance for your BMW?

At Shortfall.co.uk, we can offer several different forms of insurance that can help protect you and your BMW. Gap Insurance, otherwise known as Shortfall Insurance, is designed to protect you from the financial effects of depreciation should your BMW be declared a total loss.

If your BMW is declared a total loss (i.e. in an accident or stolen and not recovered, for example), your own motor insurance company are only legally obliged to give you the value of the vehicle at that stage in time. Due to depreciation, we expect the average vehicle to lose approximately 50% over a three-year term, some more and some less. If you have paid £30,000 for your BMW and just three years later, it's declared a total loss, you would be surprised when your motor insurance company only offer you £15,000. This is where Gap Insurance can assist.

Shortfall Gap Insurance for your BMW

There are three main Gap Insurance types, all designed to perform slightly differently. The first type is a specialist type designed specifically for a contract or lease hire agreement, where you have no direct option of keeping the vehicle as part of that agreement. This policy bridges the gap between your motor insurance settlement figure and the amount outstanding on the lease/contract hire agreement.

The second type tends to be the most commonly offered within dealerships, Return to Invoice GAP. This Shortfall Insurance policy is designed to bridge the gap between your motor insurance settlement at the point of total loss and the original invoice price you have paid. For example, suppose you have paid £30,000 for your vehicle then three years later the vehicle is a total loss and your motor insurance company offers you just £15,000. This form of Gap Insurance will pay the other £15,000 to return you to the invoice price. From this any finance would be settled and any remaining funds would be yours to use as you see fit.

The third type is slightly more comprehensive, rather than just returning you to the invoice price you have paid. Suppose the cost to replace your vehicle with another BMW, same model, specification, age and mileage as when you first purchased it, is now more expensive. In that case, we will top you up to the replacement cost instead. Combined Vehicle Replacement Gap Insurance is designed to protect you not only from depreciation in the event of a total loss but also from any appreciation/inflation to the replacement cost of the vehicle. 

BMW X5 and BMW M models (except for M Sport) are excluded. However please contact a member of the team on 08001954926 as we may be able to offer cover with another provider.