At Shortfall insurance we work at great lengths to ensure that all Chrysler customers have a full understand of the importance of Shortfall Insurance, also known as Gap Insurance.
This is the central reason why we have a Freephone number. Our sales advisers are often on the phone with customers for as long as 30 minutes, ensuring that they are well aware of the ins and outs of Gap Insurance and the importance of it to their finances. Our marketing team also spend great amounts of time in writing simple, and easy to understand articles examples, again to ensure complete understanding. This is unlike other providers who refuse to adopt the simple look, and write long, complication articles with the typical insurance terminology.
On this page you will find three examples of our three most popular policy types: Return to Invoice, Vehicle Replacement and Contract Hire. In these examples we use Sam and her Chrysler Delta, which she paid £20,000. We hope that by using the example of Sam, it will assist you in your understanding of Gap Insurance and will demonstrate how important it is to your finances.
We know that the majority of our customers first hear about Shortfall Insurance when at their local dealership. They are often present with the insurance when finalising the paperwork of their newly bought Chrysler. The average dealership price is £399 and we have dealt with customers who have been quoted as much as £1000. Our customers inform us that they decline immediately, to no surprise and instead turned to Google.
This is when they arrived on our page. At Shortfall.co.uk, customers have access to a range of policies for as low as £39.99 inclusive of insurance premium tax. All our policies are genuine and proven and are all backed by the financial compensation scheme. A number of our policies are also currently subject to a range of awards for both cost and quality. To find out more about these awards, please click here. Our customers often rightly ask us about the reasons for the significant price different between us and the dealerships. This is mostly down to the different levels of tax we both pay, however, to find out the full list of reasons, please click here.
An Estimated 600,000 vehicles are written off each year in the UK alone.
The average vehicle can depreciate by up to 50% in the first three years, with average useage and average mileage.
Your comprehensive insurer will never pay you the original invoice price you paid for your Chrysler.
Your Shortfall Insurance provider will not reimburse you your Chrysler’s road tax as this can be claimed back from the DVLA.
What level of protection can Vehicle Replacement Gap Insurance provide to your Chrysler?
Vehicle Replacement is similar to the Return to Invoice policy type given that it is based around the same concept.
However, it has one difference, as it will take account of and thus protect and pay any increase in your Chrysler invoice price.
Your invoice price may increase for a range of reasons such as if Chrysler introduce an upgraded version of your model or if the government decide to increase VAT.
In this case, Return to Invoice will pay the difference (by bridging the gap as it is often referred to) between the settlement payment you receive from your comprehensive insurer and the now increased invoice price of her Chrysler.
Please see the below example of Sam and her Chrysler that we have provided to assist your understanding of how Vehicle Replacement Shortfall Insurance can protect your Chrysler
Sam purchases a Chrysler Delta for £20,000
Three years later, she is involved in a motoring accident that thankfully leaves her unhurt, but her Chrysler is written off
Sam receives £10,000 from her comprehensive insurer, as this was the market value of her Chrysler at the time it was written off, please take note of the significant depreciation that the Chrysler has undergone
To purchase another Chrysler, Sam needs an additional £10,000
To make matters worse, Sam is informed by the Chrysler dealership that the invoice price of her Chrysler Delta has increased by £5,000 to £25,000
This means that to replace her Chrysler, Sam's need a total of £15,000
Vehicle Replacement will pay this outstanding £15,000 and allow Sam to purchase another Chrysler Delta if she so wishes.
If the original Chrysler Delta model is no longer available, she will be replaced with a Chrysler of the same age, mileage and condition as her Delta was when originally purchased it.
What can Return to Invoice Shortfall Insurance do for your Chrysler?
Return to Invoice Shortfall Insurance is one of the most basic but one of the most popular types of Shortfall Insurance.
It is all in the name as if in the unfortunate case your Chrysler is written of or stolen, it will return you back to the invoice price you originally paid for your Chrysler, after you have received a settlement payment from your comprehensive insurer.
Return to Invoice Shortfall Gap Insurance will draw a ring around the invoice price you paid and will in theory top you back up to this invoice price, once you have been paid by your comprehensive insurer.
This will then allow you to pay off any outstanding debt you may have on your finance agreement which you may of taken out in order to purchase your Chrysler or allow you to purchase another Chrysler, if you so wish.
Please see the below example that we have put together to assist you with your understanding:
Sam purchases a Chrysler for £20,000
Three years later, she is involved in a motoring accident that thankfully leaves her unhurt, but her Chrysler is written off
Sam receives £10,000 from her comprehensive insurer, as this was the market value of her Chrysler at the time it was written off.
Please take note the significant depreciation that the Chrysler has undergone, industry experts argue that the average vehicle will lose 50% of its value within the first three years
To be returned back to the original invoice price she paid, Sam needs an additional £5,000
Return to Invoice will pay this £10,000 and return Sam back to her original £20,000 invoice price. Sam is now able to pay of any outstanding balance on her finance agreement (if she was paying for her Chrysler through a finance agreement) or to purchase another Chrysler (if she purchased her Chrysler by cash) if she so wishes.
What can Finance and Contract Hire Gap Insurance do for your Chrysler?
Finance and Contract Hire Shortfall Insurance is designed to protect you against the finance agreement that you have taken out in order to purchase your Chrysler.
This can be Contract Hire, Finance or Lease Hire.
If in the unfortunate case your Chrysler is written off or stolen, you may still be liable for the remaining payments of your agreement.
In fact we have dealt with customers in the past who have been asked to pay back up to 90% of the remaining payments.
After your comprehensive insurer has paid you a settlement payment, you may still be liable for any outstanding balance on your finance agreement.
Finance and Contract Hire Gap Insurance will therefore pay any outstanding balance and clear all liabilities that have occurred under your name.
Please see the below example we have designed to assist your understanding:
Sam takes out a four year finance agreement
It involves set monthly payments of £300
Three years later, Sam awakes to find that her Chrysler is no longer on her driveway and is later informed that it has been stolen
Sam has already paid two years of her agreement, which totals £7,200 (24 months x £300)
This means that technically there is still two years worth of the finance agreement to be paid
Sam receives a settlement payment from her comprehensive insurer
This means that there is a £3000 balance still outstanding on the finance agreement to be paid
Sam is legally bounded to pay this amount
If in the unfortunate case your Chrysler is written off or stolen, you will only ever be paid the market value of your Chrysler at the time it was written off or stolen. This can be considerably less than what you originally paid, solely because of depreciation.
Industry experts claim that the average vehicle can depreciate by up to 50% in the first three years. To put this into context, your Chrysler can lose up to half of its original value within the first three years of you driving it out of the show room and this is through no fault of your own.
We at Shortfall.co.uk understand that no driver wants to hear this, given that you will have likely just paid a considerable sum for your Chrysler, and now you are told that half of this considerable sum will in theory disappear in three years times.
We have designed several examples to assist you with your understanding of Chrysler depreciation. Please note that we have taken these figures from 'What Car', who use average Chrysler depreciation, usage and mileage rates.
Example 1 –
Chrysler Delta Hatchback 1.6 M-Jet 120 SE 5dr
Invoice price you paid - £18,495
Year 1 – £11,587
Year 2 – £9,540
Year 3 – £7,805 – You will see that within the first three years, your Chrysler Delta has lost £10,690
Year 4 – £6,673 – You will see that within the first four years, your Chrysler Delta has lost £11,822
Example 2 –
Chrysler Ypsilon Hatchback 1.2 S S/S 5dr
Invoice price you paid - £10,695
Year 1 – £6,250
Year 2 – £5,150
Year 3 – £4,200 – You will see that within the first three years, your Chrysler Ypsilon has lost £6,495
Year 4 – £3,625 – You will see that within the first four years, your Chrysler Ypsilon has lost £7,070
Example 3 –
Chrysler Grand Voyager MPV 2.8 CRD Limited 5dr
Invoice price you paid - £36,265
Year 1 – £19,837
Year 2 – £16,254
Year 3 – £12,725– You will see that within the first three years, your Chrysler Grand Voyager has lost £23,540
Year 4 – £10,339– You will see that within the first four years, your Chrysler Grand Voyager has lost £25,926
Example 4 –
Chrysler Delta Hatchback 1.4 M-Air 140 SE 5dr
Invoice price you paid - £18,000
Year 1 – £10,726
Year 2 – £8,806
Year 3 – £7,249 – You will see that within the first three years, your Chrysler Delta has lost £10,751
Year 4 – £6,178 – You will see that within the first four years, your Chrysler Delta has lost £11,822
Chrysler, along with General Motors and Ford are part of the 'Big Three American Automakers'. The company is currently the world's 13th largest manufacturer.
The company was founded by Walter Chrysler in 1925 when he was asked to lead an overhaul of the struggling automobile manufacturer, Maxwell Motor Company. However, Walter began designing his first prototype car a year before in 1924. The famous story reads: Walter unsuccessfully applied to feature his Chrysler prototype at the New York Motor Show.
A determined Walter therefore decided to park his prototype in the lobby of the event. This indeed did catch the organisers eye. In 1924, the first Chrysler model was introduced. It was a 6-cylinder automobile and introduced at an affordable price. Between the years 1938 to 1941, the company was the worlds second largest automaker.
Throughout the Second World War, the company halted production of domestic vehicles and produced tanks and other military vehicles for the American war effort. In 1987, Chrysler took over the American Motor Corporation, and with it, took on the Jeep brand.
The company has also previously diversified into radar antennas and also missile production. The company is well known for being subject to a range of financial difficulties. In the late 1970's, it was forced to seek a government bail out. In the late 1980's, it was forced to seek a company reconstruction.
In 1998, the company was acquired by Daimler-Benz and formed DaimlerChrysler subsidiary. However because of limited success, the company would be sold to an American investment fund in 2007. However the company would be devastated by the 2008 economic crisis and again be forced to seek a government bail out.
The current Chrsyler portfolio consists of the following successful models: Ypsilon, Delta, Grand Voyager and 300C.
